ETFs The New Investment Idol
Mutual Funds (BAD)
A Comparsion Between ETFs vs Mutual Funds

Represents a basket of stocks or bonds

Represents a basket of stocks or bonds


Average ETF fee is 0.5%


Average management expense ratio in Canada on mutual funds is 2.87%

Low Cost Leader

ETFs are usually structured in a way that insulate shareholders from having to pay capital gains tax


Many investors do not realize that mutal funds incur capital gains taxes, the cost of which is borne by the fund holder, even if you don't sell a single share.


Tax Advantage

No additional surcharges

Some mutual funds are "loaded" and make investors pay thousands either on the "front end" (when the mutual is initially bought) or on the "back end" (when the shares are redeemed)

No loads

ETFs have very low operating expenses.  Brokerage house takes care of all necessary paperwork and bookkeeping.


Mutual funds have to maintain higher expenses and overhead including portfolio managers, bookkeepers, mailroom, customer service agents, trading costs, etc.


Lower Operating Costs

ETFs can be purchased on the stock market during trading hours with limit, market, or stop loss orders.  Purchase or sale price is known to investor

Mutual funds are bought and sold at the NAV (net asset value) at the end of the day.  Investors do not know the price they pay until after market close.

Price Transparency

No requirements to hold cash


Mutual funds have to maintain a certain level of cash.  So a portion of the investors funds is just sitting idle.


Fully Vested
Banking Industry
The investment environment is ever changing and doing a financial plan is an important first step. Everyone wants to know the same things when it comes to financial and tax planning for retirement.