Jon Chevreau recently blogged (see John Bogle says investors getting killed by ETFs) on John Bogle’s analysis of returns experienced by investors in Exchange-Traded Funds (ETFs) and the results are not pretty: In 68 out of 79 ETFs, the returns experienced by investors lagged that of the ETFs themselves by an average of 4.5%. Bogle [...]

[Read more →]

Million Dollar Journey made an interesting post last week in which he listed some points that in his opinion, are the disadvantages of indexing. While I made a detailed comment on that post, I couldn’t resist biting the juicy bait dangled in front of me. So, let’s examine his claims closely:

No downside protection: Investors wanting [...]

[Read more →]

Canadian investors who want to passively track our equity markets through ETFs have two choices - the iShares CDN Large Cap 60 Index Fund (XIU) or the iShares CDN Capped Composite Index Fund (XIC). As the name suggests, the XIU tracks the performance of a capitalization-weighted index of 60 large, liquid stocks that trade on [...]

[Read more →]

I thought I’d share one of the less appreciated benefits of passive investing after reading Million Dollar Journey’s post on working hard for our money instead of doing the things we value more. Like most Canadians, we work extremely hard - between us we have two day jobs, write a blog, attend graduate school, raise [...]

[Read more →]