We use low-cost Mutual Funds and Exchange Traded Funds to construct investment portfolios customized to our clients’ needs. These products are effective in constructing a portfolio with diversified exposure to various asset classes as outlined in a client’s personalized investment plan.
Exchange Traded Funds (ETFs)
An ETF is an investment fund that trades on stock exchanges, much like stocks. An ETF holds assets such as stocks and bonds, and trades close to its net asset value over the course of the trading day. ETFs typically track an index, such as a stock index or bond index.
Mutual funds are investment vehicles that are made up of a pool of funds collected from many investors with similar objectives, for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets. Mutual funds are operated by money managers who invest the fund’s capital seeking to produce capital gains and income, in accordance with the investment objectives stated in the prospectus.
Low-cost Mutual Funds
Low-cost mutual funds are a separate series of mutual funds (commonly known as the F-Series) that are available to fee-based accounts only. This series of mutual funds does not bear any sales charges or ongoing fees paid to advisers for their advice and other services. As a result, the cost of holding this series of mutual funds are significantly lower than holding any other series of mutual funds. Since we charge a separate portfolio management fee to our clients, we only use this series of low-cost funds from the entire universe of Canadian mutual funds to build portfolios, which minimizes the overall cost to our clients.