I agree. You could just open an account with a discount brokerage and buy Vanguard or Blackrock index ETFs.
I went to an investment advisor firm party for rich people
- Thread starter Mandala
- Start date
"My point is why transfer when it is going "in kind" and staying "in kind" ? - as it has to stay "in kind" to avoid taxes- when I can just keep it where it is for free?"
A lot of companies have incentives to move investments. For example, WealthSimple had a 2% bonus for moving RRSPs and 1% for everything else. If you have a substantial amount, that's extra income (TBD if taxable, I'm thinking not). In addition, for example, WS has no trading fees. Advantages and disadvantages right?
"Do you have an opinion on Investors Group?"
Not one single good opinion. When my father died, I reviewed their investments and my mom was making ~3% over the last 10 years. Are you fucking kidding me? Move her to my RBC DI accounts and now she gets over 10%. IG are bastards.
A lot of companies have incentives to move investments. For example, WealthSimple had a 2% bonus for moving RRSPs and 1% for everything else. If you have a substantial amount, that's extra income (TBD if taxable, I'm thinking not). In addition, for example, WS has no trading fees. Advantages and disadvantages right?
"Do you have an opinion on Investors Group?"
Not one single good opinion. When my father died, I reviewed their investments and my mom was making ~3% over the last 10 years. Are you fucking kidding me? Move her to my RBC DI accounts and now she gets over 10%. IG are bastards.
I just invest in insanely risky dividend bearing ETF’s and let it roll! Well not completely. I use trailing stop losses, so I won’t get wiped out, and try to limit each security to 5k or less to spread it out.
Ya, I'm very skeptical of the CC Dividend ETFs, too risky for me as I depend on my investment income. However, as you say, use stop losses.
Believe it or not, there are some half decent mutual funds. Look at the 15 year return for this one. Used to be the Sceptre Equity Growth Fund and had some fantastic returns around between 20 to 30 years ago with a different fund manager(Allan Jacobs) who then took off to Sprott and then left the industry shortly afterwards.
True...just need to wade through a LOT more compared to ETFs..
Yeah. Generally speaking, indexing is the way to go. Some former high flyers like Mawer Global Small Cap have really come back to earth in a bad way.
Not sure if we have a global small cap index ETF listed in Canada by the way.
I do not believe it.
Yes, there are mutual funds that have beaten the market over a long period of time, but that is because there are so many mutual funds that some will beat the average by mere chance and past performance is not indicitive of future performance
What often happens is either the manager leaves, the style goes out of fashion or becomes overpriced, or competitors catch on.
As the chart above shows(speakercontrols), there is more inefficiency in pricing for small/ mid caps.
But if the fund gets too big, especially in a smaller market like Canada, then it is more difficult to add alpha in small/mid caps.
I could not find anything. I have some other Vanguard ETFs though.
I suspect the funds were beating the average by factoring. IE small caps, tech, many factors are involved . Those factors worked for a few years then started to drop and they got lucky going in but not smart enough to get out
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The mid and more so small caps have very little analyst coverage. An index like the S & P 500 has so many analysts covering those companies that all the info is priced into those stocks.
