tag:blogger.com,1999:blog-5433839636644874439.post9061049007652579857..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: The Myth that ETFs are Always and Necessarily Better than Mutual FundsCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-5433839636644874439.post-74914165690469515262010-02-26T22:23:51.903+00:002010-02-26T22:23:51.903+00:00@CI...my apologies for the typos. It seems my gram...@CI...my apologies for the typos. It seems my grammar and spelling has gone down in direct correlation with my succumbing to the technology age!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-83662848093384082192010-02-26T22:21:44.245+00:002010-02-26T22:21:44.245+00:00@CI...Thank so much. Ive self educating for a few ...@CI...Thank so much. Ive self educating for a few years now but finding blogs like the Canadian Capitalist and offshoots likes yours has been relief for those of who suffer from information overload. One thing has baffled me: it seems if you are looking cash holdings at returns that GICs seem very comparable to TFAs and High Interest accts. unless your willing to park your cash for a few years. Is this true?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-17436029062515440242010-02-26T19:07:35.320+00:002010-02-26T19:07:35.320+00:00CF DIY: Many thanks for linking to my blog. Great ...CF DIY: Many thanks for linking to my blog. Great to be part of the personal finance blogging community!Canadian Couch Potatohttp://canadiancouchpotato.comnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-75240693316054143222010-02-26T17:33:14.092+00:002010-02-26T17:33:14.092+00:00Anon2, ... hmmm 4% average, depending on who is qu...Anon2, ... hmmm 4% average, depending on who is quoting the numbers for what purpose, it could be right on or way off. Consider such factors as:<br />- equity vs bond funds, or subdivisions thereof; equities have higher returns over the long term, like 5.8% compounded since 1900, (see Feb.16 blog)<br />- inflation taken off or not; usually not when funds show returns<br />- fees taken off; usually some are, but sometimes it is "convenient" not to show all costs of operating an ETF or fund; annual reports give the dirty truth if you can, and care to, dissect them<br />- taxes; usually not shown because they cannot know what tax bracket you the investor may be in<br /><br />Yes, DRIPs are very good since they avoid commissions, which can be a significant overhead to reinvest ETF distributions.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-33493852422028038412010-02-26T13:50:26.508+00:002010-02-26T13:50:26.508+00:00I love these blogs and think both the posters and ...I love these blogs and think both the posters and commenters offer valuable info. But, now I think Im even more confused between fees and figuring out actual returns. Ive read the average longterm return on both ETFs and mutual funds is about 4%. Is that after fees and before taxes? Does a DRIP offer a good advantage...Ive been urged by others who swear by them.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-82214572319699211362010-02-26T13:11:29.346+00:002010-02-26T13:11:29.346+00:00re small caps and funds, the principle I have seen...re small caps and funds, the principle I have seen that makes sense is that the less efficient a market is, the more opportunity to make excess profits. That means places like small caps, which receive less professional analyst attention, emerging market stocks. But if the fund managers jack up their fees - and don't the small cap managers charge more in fact? - the benefit from the better stock picking success goes to the managers, not the investor.<br /><br />btw, Couch Pot., saw your website the first time today - looks good and am adding it to my blog list.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-89207433411277999392010-02-26T12:59:25.879+00:002010-02-26T12:59:25.879+00:00RE: the idea that actively managed small-cap funds...RE: the idea that actively managed small-cap funds beat the indexes, let's put this in perspective. The most recent SPIVA reports show that 52% small/midcap funds outperformed the benchmark in 2009, and that was a year when small caps were red hot. Crack out the champagne, the active managers made it a coin flip instead of their usual 80% to 90% failure rate.Canadian Couch Potatohttp://canadiancouchpotato.comnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-79768190900338700342010-02-24T01:00:53.843+00:002010-02-24T01:00:53.843+00:00Anon, you might look at some alternatives here htt...Anon, you might look at some alternatives here http://howtoinvestonline.blogspot.com/2010/02/comparing-alternatives-for-where-to.html to decide whether the potential upside of the note is worth it. It seems to be in the ballpark.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-17129847687225448652010-02-23T20:12:57.085+00:002010-02-23T20:12:57.085+00:00My bank is offering me a 5 year floating rate note...My bank is offering me a 5 year floating rate note with fixed rate 3% for the first two years and capped between min 3 and max 7% to the 3months USLIBOR for the year 3, 4 and 5. Am I having a good deal?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-52244570985400555862010-02-23T17:29:05.988+00:002010-02-23T17:29:05.988+00:00I think I saw something like that too a while back...I think I saw something like that too a while back. Good post for you to do. Ironic isn't it that when finally ETFs are getting to be widely known they get corrupted?CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-79212959064011610012010-02-23T17:08:57.030+00:002010-02-23T17:08:57.030+00:00Jean
I think actively managed mutual funds also be...Jean<br />I think actively managed mutual funds also beat index funds and ETFs in certain categories like small caps?larry macdonaldhttp://blog.canadianbusiness.com/category/larry-macdonald/noreply@blogger.com