Canadian Interest

Expensive Index Funds

February 3, 2005

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One of the biggest advantages of indexing is low expenses. This Globe and Mail article expands on how outrageously expensive index mutual funds eats into investor returns. Except for eFunds offered by TD Bank, it is advisable to stay away from the other index funds described in the article and consider the less expensive alternatives from the iUnits series of ETFs.

RESP 101

January 31, 2005

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We don’t have kids (yet) but it is good to know about education savings plans available. There was a nice introduction in the Sunday edition of the Toronto Star (bypass registration here).

Increasing Foreign Content Inside RRSP

January 29, 2005

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Canadians are allowed a maximum 30% foreign content inside their retirement (RRSP) accounts. A recent Royal Bank poll has revealed that 35% of RRSP portfolios have no foreign content at all and a mere 5% have achieved the maximum foreign-content limit. It is very important to diversify a portfolio with different asset classes including foreign equities (US, EAFE and Emerging Markets). The current strength of the loonie is a great opportunity to initiate foreign content. Synthetic funds like the iUnits S&P 500 index fund (TSX:XSP) and the iUnits MSCI International fund (TSX: XIN) are considered Canadian content inside a RRSP.