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Hi

My first post, so hello to everyone.

I am looking to build the couch potato portfolio.

I am currently with RBC direct investing. I can view quotes on the TD e funds but i cannot buy them. The following funds are available

TD CANADIAN INDEX FUND I SERIES (216)
TD US INDEX FUND I SERIES (661)
TD INTERNATIONAL INDEX FUND I SERIES (964)
TD CANADIAN BOND INDEX FUND I SERIES (966)

they have the same name as the couch potato funds - but what is the difference?

thanks
 

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Hi

My first post, so hello to everyone.

I am looking to build the couch potato portfolio.

I am currently with RBC direct investing. I can view quotes on the TD e funds but i cannot buy them. The following funds are available

TD CANADIAN INDEX FUND I SERIES (216)
TD US INDEX FUND I SERIES (661)
TD INTERNATIONAL INDEX FUND I SERIES (964)
TD CANADIAN BOND INDEX FUND I SERIES (966)

they have the same name as the couch potato funds - but what is the difference?

thanks
apart from the response from Archanfel, I really dont know

What do you think the difference is, after all you must have some idea after making the selection and posting the question

PS, it is always good to ask a question that you already know the answer to
 

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As noted the fees are lower while the other difference is how you can access them. You can only buy the e-series funds from TD or TDW, and only online. The I-series you can buy through RBC DI or any other brokerage, in addition to TD branches, etc.
 

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I'm not sure what you are referring to as the couch potato portfolio. If you look on the TD website under mutual funds, you can look up the codes for the various funds.

TD Canadian Bond Index I series - TDB966
TD Canadian Bond Index e series - TDB909

Archanfel is right. The difference between these two funds (other than the fact that other mutual funds dealers may not sell the e-series fund) is the MER. The I-series version of the fund has an MER of 0.79%, whereas the e-series of the fund has an MER of 0.48%. This may relate to the the notion that other dealers and brokers won't sell e-series funds. Many funds have a commission/trailer fee structure. I think the MER is supposed to capture the effect of these fees. TD may not offer dealers/brokers commissions or trailers to sell the e-series, which explains why no other dealers/brokers would want to sell them, and why TD can offer a lower MER.
 

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I'm not sure what you are referring to as the couch potato portfolio. If you look on the TD website under mutual funds, you can look up the codes for the various funds.

TD Canadian Bond Index I series - TDB966
TD Canadian Bond Index e series - TDB909

Archanfel is right. The difference between these two funds (other than the fact that other mutual funds dealers may not sell the e-series fund) is the MER. The I-series version of the fund has an MER of 0.79%, whereas the e-series of the fund has an MER of 0.48%. This may relate to the the notion that other dealers and brokers won't sell e-series funds. Many funds have a commission/trailer fee structure. I think the MER is supposed to capture the effect of these fees. TD may not offer dealers/brokers commissions or trailers to sell the e-series, which explains why no other dealers/brokers would want to sell them, and why TD can offer a lower MER.
The MERs are lower simply because they are only available online meaning there is less overhead cost for TD to pass on. No need to over-complicate matters with speculations.
 

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It is worth opening a TD Mutual Funds account just have the ability to buy TD e-Series Funds and take advantage of much lower MERs. Unlike actively managed mutual funds, there is no difference between index funds other than the MER and how well the fund tracks the index.
 
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