ETFs or Mutual Funds

Why should you include ETFs in your portfolio?

Mutual funds are a great way to invest your savings. Wait, what if I told you that over 85% of mutual funds underperformed ETFs over a 10 year period. An ETF, Exchange Traded Fund, is a pool of money managed by a professional ETF provider and it’s typically invested to track an index such as the TSX, S&P500, or the Dow. They are the most effective way to get the actual return of the stock market.

So why should you use ETF’s over mutual funds? The average Canadian mutual fund fee is 1.14%, while the Canadian ETF fee is only 0.06%.

Ever wonder how these fees impact your return?

$100,000 Over 25 years earning 6% with .06% ETF fee = $423,155.
$100,000 Over 25 years earning 6% with 1.14% mutual fund fee = $327,526.

If you invested $100,000 for 25 years and earned 6%, the fee savings from using ETFs would put $95,629 more in your pocket.

Maybe its time to ask why your financial advisor isn’t using ETFs.

At Tomkins Financial, it’s our job to save you money, because as you grow, we grow.

For more information on how to include ETFs in your portfolio, leading to lower fees and greater returns, contact Tomkins Financial at (250) 753-7777 for a free consultation.

Financial Planning for Investment Strategies with Tomkins Financial