Canadian Money Forum banner

1 - 10 of 10 Posts

·
Registered
Joined
·
2,953 Posts
Discussion Starter #1
Here, according to Money Magazine, are their current top rated Vanguard ETF's:

Vanguard Emerging Markets ETF
Vanguard Europe Pacific ETF
Vanguard FTSE All-World ex-US ETF
Vanguard Mid-Cap ETF
Vanguard REIT ETF
Vanguard Short-Term Bond ETF
Vanguard Small-Cap ETF
Vanguard Total Bond Market ETF
Vanguard Total Stock Market ETF

Buy, hold, and prosper and keep those fees 'little'!!
 

·
Banned
Joined
·
94 Posts
These guys got it right. They realized Mutual fund is on its (very slow) death and started their etf family. They give you the option to convert their mutual fund to ETF. You wonder when canadian banks would do that.
 

·
Banned
Joined
·
2,508 Posts
To say the obvious, Vanguard has half the MER, but both funds are a little different. With Claymore, it appears that you are indirectly paying for their pre-authorize purchase plan. (bypass the broker commissions). Kind of like a TD E-series fund, but TD doesn't have emerging market exposure, in e-series.
 

·
Registered
Joined
·
2,953 Posts
Discussion Starter #7 (Edited)
And then there is the Claymore Broad Emerging Markets ETF (CWO) which holds the Vanguard Emerging Markets ETF as it's sole investment but which provides currency hedging---at a price!!

http://www.claymoreinvestments.ca/en/etf/fund/cwo

The underlying Vanguard fund charges a MER of just 0.27%, when purchased directly, while the currency hedged Claymore version charges 0.65% but then there is no concern about exchange rates.

And so, when all is said and done, which of these two options is better for Canadian investors?

I guess that it all comes down to whether you believe that the added fees for the currency hedging is worth it or not.
 

·
Banned
Joined
·
2,508 Posts
And then there is the Claymore Broad Emerging Markets ETF (CWO) which holds the Vanguard Emerging Markets ETF as it's sole investment but which provides currency hedging---at a price!!

http://www.claymoreinvestments.ca/en/etf/fund/cwo

The underlying Vanguard fund charges a MER of just 0.27%, when purchased directly, while the currency hedged Claymore version charges 0.65% but then there is no concern about exchange rates.

And so, when all is said and done, which of these two options is better for Canadian investors?

I guess that it all comes down to whether you believe that the added fees for the currency hedging is worth it or not.
I have read a few discussions that say you could pay a premium for someone bet your currency hedge, over the long term. You could face a loss in the hedge and miss matching the index. There are ways you can save on currency exchange fees.

Why not be diversified in other currencies?
 

·
Banned
Joined
·
356 Posts
And then there is the Claymore Broad Emerging Markets ETF (CWO) which holds the Vanguard Emerging Markets ETF as it's sole investment but which provides currency hedging---at a price!!

http://www.claymoreinvestments.ca/en/etf/fund/cwo

The underlying Vanguard fund charges a MER of just 0.27%, when purchased directly, while the currency hedged Claymore version charges 0.65% but then there is no concern about exchange rates.

And so, when all is said and done, which of these two options is better for Canadian investors?

I guess that it all comes down to whether you believe that the added fees for the currency hedging is worth it or not.
The CDN dollar is getting close to par again with the US dollar. The closer it is to PAR, the less worthwhile it is to hedge if you believe that the CDN dollar is not going to go much higher than PAR.
 

·
Registered
Joined
·
2,953 Posts
Discussion Starter #10
My overall conclusion is to hold some hedged ETF's and some non-hedged ETF's and then not to worry too much about hedging again.

I plan to hold each of these ETF's 'forever' except to adjust annually for rebalancing purposes.

Thus, I hold a few hedged ETF's from Canadian firms and the rest are non-hedged, mainly lowest fee, non-hedged Vanguard ETF's.

In the final analysis, hedging is just not that great a deal and everything will come out in the wash, give or take, over the long term.

I will revisit the entire matter when I turn 100.:( :eek:
 
1 - 10 of 10 Posts
Top