For almost 20 years, the TD e-Series mutual funds have been one of the cheapest and easiest ways to build a Couch Potato portfolio. For most of that time they’ve gone about their business without much fuss, all the while outperforming the vast majority of their peers. But now there are some changes in the offing for these venerable old funds.
And don’t despair: the changes are mostly for the better.
If you hold any of TD’s e-Series index funds, you may have received a notice of these impending changes, and as a unitholder, you have the right to vote on them. In practice, though, they’re going to be approved whether or not you show up at the unitholder’s meeting in September. So let’s take a look at what’s going on and why.
New structure and new benchmark indexes
Several TD funds are undergoing changes, but we’ll focus on the four e-Series index funds that have long been part of the Couch Potato model portfolios:
| e-Series Fund | Fund Code | MER |
|---|---|---|
| TD Canadian Bond Index Fund | TDB909 | 0.50% |
| TD Canadian Index Fund | TDB900 | 0.33% |
| TD U.S. Index Fund | TDB902 | 0.35% |
| TD International Index | TDB911 | 0.50% |
So, what’s new here? Rather than directly holding individual stocks and bonds, as they do now, these e-Series funds will instead use one of TD’s index ETFs as their underlying holdings. In other words, they will become a mutual fund “wrapper” for the ETFs.
Although they’re not well known, TD launched a family of index-tracking ETFs more than three years ago, and there are funds in each of the major asset classes. They’re comparable to the more popular offerings from Vanguard, iShares and BMO in my model portfolios, with competitive fees:
| ETF | Ticker | MER |
|---|---|---|
| TD Canadian Aggregate Bond Index ETF | TDB | 0.11% |
| TD Canadian Equity Index ETF | TTP | 0.07% |
| TD U.S. Equity Index ETF | TPU | 0.11% |
| TD International Equity Index ETF | TPE | 0.20% |
The above ETFs have very similar mandates to the TD e-Series funds, but they track different benchmark indexes. Since the e-Series funds will soon be using the ETFs as their underlying holdings, their benchmark indexes will change accordingly:
| Asset Class | Current e-Series Benchmark | ETF (and new e-Series) Benchmark |
|---|---|---|
| Bonds | FTSE Canada Universe Bond | Solactive Broad Canadian Bond Universe |
| Canadian equities | S&P/TSX Composite | Solactive Canada Broad Market |
| US equities | S&P 500 | Solactive U.S. Large Cap |
| International equities | MSCI EAFE | Solactive GBS Developed Markets ex North America Large & Mid Cap |
By way of background, fund companies pay licensing fees to their index providers, and the big names like S&P, MSCI and FTSE likely charge more than lesser-known competitors. So when TD launched its ETF lineup, they decided to team up with Solactive, a relatively new German firm that has also provided indexes for Horizons ETFs, Morningstar and other Canadian fund providers, presumably for a lower fee.
Will this make a difference to performance? It’s doubtful. So long as an index is designed to track a broad market using a traditional cap-weighted methodology, any differences are likely to be minimal. ETF investors should already understand this if they’ve chosen between funds in the same asset class from Vanguard, iShares and BMO, which generally use different index providers. Assuming the costs are the same, it’s hard to make a strong argument that any of these is inherently superior or inferior to the others. Have a look at the top holdings and the sector breakdowns in the e-Series funds and the corresponding ETFs and you’ll see they are nearly identical.
Never mind the theory: since we have three full years of performance for TD’s ETFs, we can see how the Solactive indexes have stood up to their competitors in practice. After adjusting for the fee difference between the e-Series and ETF versions, the Solactive indexes outperformed those of the e-Series funds in U.S. equities (+0.18% annualized) and international equities (+0.32%), and underperformed in Canadian equities (–0.35%) and bonds (–0.19%) during the three years ending July 31. So it’s been a coin flip, and the variations are likely random: there’s no reason to expect they’ll persist.
That said, any time a fund switches to a different benchmark index, that counts as “a change to the fundamental investment objectives,” and the fund provider needs to obtain the consent of a majority of unitholders. That’s why TD is reaching out to investors in the e-Series funds, and I’m not sure why anyone would vote against such a proposal.
Tax consequences
An important question to consider is whether there will be any tax consequences as a result of these changes. When the e-Series funds begin tracking different benchmarks, they will inevitably need to sell some stocks to bring their holdings in line with the new indexes. That could result in capital gains being realized and then passed along to unitholders using taxable accounts. (This is a non-issue if you use the TD e-Series funds in a TFSA or RRSP.)
But this is unlikely to be a problem. The e-Series funds will not need to liquidate their entire portfolios and then buy ETF units on the exchange. That would be what you or I would have to do, but institutional investors moving millions don’t need to do this. Instead, the mutual funds will package up their existing stocks in the same proportion as in the Solactive indexes. Then they’ll exchange those baskets of stocks for newly created units of the ETF. Perhaps it helps to think of this like exchanging 24 individual bottles of beer for a case of the same beer. No party is gaining or losing on the transaction, so this is not a taxable event.
Now, even after this in-kind exchange takes place, the e-Series portfolios will not precisely match their new benchmarks, so there may need to be some trading on the margins. According to the management circular, the estimated turnover in the four funds will range from 3.2% to 7.9%. In all four cases, the document says these trades “will be done in such a way, while using up any available tax loss carry forwards, to limit the tax impact to unitholders. This may take several years.”
What do they mean by “tax loss carry forwards”? Well-managed funds take advantage of tax-loss harvesting opportunities as they come up, and then carry forward those losses to offset future gains, which is why many index funds distribute almost no taxable gains to their unitholders. The 2018 financial statements for the TD Canadian Index Fund, for example, reveals $111 million in carried-forward losses, which means it’s unlikely to distribute gains any time soon.
For what it’s worth, RBC made a similar move in 2017, when they began using their own ETFs as the underlying holdings for their index mutual funds, switching benchmarks in the process. Their Canadian, US and international equity funds did not distribute any capital gains that year, though surprisingly their bond index fund did. (You probably shouldn’t be holding a traditional bond index fund in your non-registered account to begin with.)
If you’re wondering whether the structural change to the US and international e-Series funds will have an effect on foreign withholding taxes, the answer is no. When a Canadian mutual fund or ETF uses a US-listed ETF as its underlying holding, there can be an additional layer of foreign withholding taxes that applies even in TFSA and RRSP accounts. However, if the underlying holding is a Canadian ETF, this is not an issue: the foreign withholding taxes are the same as if the fund held the underlying stocks directly.
Lower fees
There’s more good news for e-Series unitholders. As part of the proposed changes, the e-Series funds will all enjoy a 0.05% reduction in fees. Note this table includes only the fund’s management fee. The full MER, which includes taxes, will be higher.
| e-Series Fund | Current fee | New fee |
|---|---|---|
| TD Canadian Bond Index Fund | 0.45% | 0.40% |
| TD Canadian Index Fund | 0.30% | 0.25% |
| TD U.S. Index Fund | 0.35% | 0.30% |
| TD International Index | 0.45% | 0.40% |
Five basis points isn’t going to allow you to retire earlier (it’s one latte a year on every $10,000 invested), but it’s a move in the right direction. With these fee reductions, a traditional balanced portfolio with 40% bonds and 20% in each of the three equity asset classes will see its MER dip below 0.40%, which is as cheap as an index mutual fund portfolio has ever been in Canada.
Wider availability
Finally, there’s been another big change to the e-Series funds that has gone largely unnoticed—partly because TD has done absolutely nothing to publicize it.
The biggest knock against the e-Series funds has always been that they played hard to get: you could only buy them in a TD Mutual Funds account (which you can open at a bank branch) or through TD Direct Investing, the bank’s online brokerage. Investors using other brokerages could only purchase the Investor Series (I-Series) versions, which have much higher fees.
But no more: the e-Series funds can now be purchased through other online brokerages. I can’t confirm that they’re universally available, but BMO InvestorLine, Scotia iTRADE and RBC Direct Investing have added them to the lineup. (If you’re able to confirm availability at other brokerages, please share this in the comments section.)
A little background on the reasons for this change. If you bought the I-Series funds through an online brokerage other then TD Direct, a significant part of your fee was a “trailing commission” paid to the brokerage. Trailing commissions are designed to compensate advisors for their ongoing advice, and they are still the way most mutual fund advisors are paid. But discount brokerages, by definition, cannot offer financial advice, and investor advocates have been arguing for years that it was unethical for them to collect these fees.
After facing pressure to stop this practice, TD sent a notice to investors who held their I-Series index funds through discount brokerages and told them their units would be automatically switched to the e-Series versions. This represented a significant fee reduction for anyone holding these funds, even if the investors didn’t notice. Going forward, DIY investors will not be able to buy I-Series funds at all: only the e-Series versions will be available.
For those who still appreciate the benefits of index mutual funds over ETFs, the TD e-Series offering just got a little better.
I am 35 and plan to retire when I’m 65. Should I just choose the equity e-series funds and forego the 25% in bonds, since I won’t need the money anytime soon? It’s for retirement.
Dear Dan,
First of all, thank you on behalf of your tens of thousands readers and followers of your investing strategies! You rock! :)
Now my questions… :)
What would you recommend people do with their “lump sum” when they transfer/switch their existing high-MER investments to any of your portfolios to take advantage of substantially lower fees. E.g. if I “move” $20,000 to a TD DI account today, should I immediately buy TD eSeries for the whole amount (distributed according to the respective portfolio’s risk) or should I buy in “increments” (dollar amount per day/week) or something like that? Also, with cash available as total, should I rather buy ETFs (1-3 transactions based again on the same chosen risk), leave it there in the account and then continue buying TD eSeries with my regular contributions ($100-300/month)? My question refers to registered accounts only (TFSA, RSP and RESP).
Separate question – Do you recommend “dumping” of TD eSeries into ETFs once-twice a year? I’ve read your blog that 0.20% difference doesn’t make much sense for small accounts, but besides that, any other thoughts on this approach, which I see from their comments that many of your readers still do.
Thanks so much! And keep up the great work!
Vel
Thanks for the post, very useful indeed. In light of this post and the one discussing the benefits of Index Mutual Funds (TD e-series to be specific): Is it safe to say that when compared to ETF portfolios (e.g
Vanguard, iShares model portfolios), the TD e-series portfolios make up for their high MER by compounding? I.e. every dollar gets reinvested, even the dividends which for smaller accounts, may even be less than a single unit, get reinvested. So in the long term (20 – 30 years); e-series comes out at the top, even with the higher MER? My plan is to move away from my Advisor and start doing my own DIY. I realized that I was paying more than half of my yearly contributions in fees and I am loosing my sleep over this.
@JT: No, any benefit that might come from the full reinvestment of dividends would not make up for the higher MER of index mutual funds compared with ETFs. In fact, we know this is not the case, because the published returns of ETFs assume that all dividends are automatically reinvested, even though in practice this is not the case for individual investors.
Setting up a DRIP with your ETFs is often a good idea and it will get you almost all the way there. Any small amount of cash that will build up in the account is likely to have a trivial effect on performance.
Hey Dan, I’m still interested to hear would you recommend buying Mutual Funds in increments or at once. With $20k to invest for example, should I buy the funds in one day or over the span of let’s say a month ($5k/week or even $1k/day in transactions)? Thanks!
TD won’t allow its clients to convert a mutual funds account into an e-series mutual funds account anymore. The only way to hold up e-series funds henceforth is with Td Direct Investing (supposing you didn’t previously have an e-series account).
Source: Tried to do this recently and that’s the response I got from TD.
hi
Dear Dan & @ Td- I am planning to transfer my daughters RESP and my personal RRSP & TFSA (all are under mutual funds accounts) to TD direct investing . Under the assumption of what you said” that TD won’t allow its clients to convert a mutual funds into an e-series mutual funds account” Does this mean if I transfer all in-kind, I won’t be able to transfer them to an index later on? What if I sell those holdings after transferring it to td direct investing, can I use that create new portfolio into buying index mutual funds? Or would it be better to sell those holdings first on my current holding, then transfer that cash into direct investing?
Thank you so much in advance. Your articles has been mind opening and very helpful.
@hc: First off, I suggest a phone call with TD Direct to make sure things will unfold as you expect. But, yes, if you transfer your mutual funds in kind to TD Direct Investing you can then sell the funds and use the proceeds to repurchase Td e-Series funds. My comment about not being able to “convert to an e-Series account” only refers to accounts held through a TD bank branch, not through TD Direct Investing.
Hi Dan,
Thank you very much for the informative article. I have a question about the difference (if any) between holding an e-Series account through TD Investment Services vs TD Direct Investing. If an e-Series account was opened though a TD branch (before they changed their policies), is it more beneficial to keep it there rather than using TD Direct Investing, since TD Direct Investing charges a quarterly maintenance of $25?
Thanks!
DAN, the recent dip in the mkt due to covid made me think. By definition the Index funds must invest in the shares in the index and the fund must keep fully invested. Doesnt this have a buffering effect on the index as this part of its ownership is not reacting to circumstances ( not necessariily a bad thing)
@le: The TD Direct maintenance is waived if you meet a minimum account balance of $15K. If you can meet this, then TD Direct is a more flexible and comprehensive option. But if your account is below that minimum and you already have a branch account set up, then there is less incentive to switch.
@Dr Mike: An index fund must stay fully invested, but its unitholders are free to panic and sell. And if a fund has lots of redemptions, it will be forced to sell its underlying holdings to pay out that cash. So I’m not sure index funds can be said to have any stabilizing effect on the market.
I have been following advice from this blog and have built my portfolio around the TD-E series suggestions. I have 6 figures invested in an RRSP account.
Seeing something strange in the TDB series. Maybe I don’t know what I am talking about. The TDB funds are transferring holding to other funds with bigger yields and smaller MERs over the last month.
Example:
TDB900 has a .32MER and 2.74% yield. According to the holdings, the fund has increased holding of TTP to 25.4%.
TTP has a .06MER and 3.24% yield. TTP has roughly the same holdings as TDB900.
I can understand why they would want to do this, but I don’t really understand why I would not just directly put my $$ into TTP. Am I seeing this wrong?
@Matt: I think you can safely ignore the yield figures: there are several ways of reporting yield and comparisons are frequently inaccurate. As you note, the mutual fund and the ETF have more or less identical holdings, so the dividend distributions will also be almost identical. So this comes down to whether or not you’re comfortable trading ETFs on an exchange or whether you prefer the conveniences of mutual funds. I outline the pros and cons of each on the Model Portfolios page.
Some MF and ETF are offered with the option of “Hedged to Can funds” or not. I have read the definitions but am no wiser–which version would you recommend??
I just found your views on this subject in a 2010 post. So no need to answer unless there is something new. I think I will go with un hedged as i am an old guy and dont t hink that there will be much change in the next few years.
You already explained with this article…. I am still confused…. I have TD U.S Index Found – E, and International Index Found – E under TFSA. and planning to invest more…10, 20 years…..To avoid foreign Withholding Taxes, should I not use TFSA for these investments ? or Under TD E -series, does not really matter ?
@Sumi: If you are using the e-Series funds there is no way to avid foreign withholding taxes in either a TFSA or an RRSP. BUt I would not worry too much about this. The international diversification is important, and both TFSAs and RRSPS provide long-term tax sheltering even after forfeiting a small portion of the dividends.
No cant access TD funds through RBC brokerage direct investing.
Retired, widowed and 74. I have had a TD Direct trading account for years. This query is for my non registerd Margin account. I need some advice to decide if the 4 TD e series or their corresponding ETF’s is the ideal way to transition a significant number of BCE stocks that have a very low ACB. While their dividends are significant, between them, DB pension and the aggregate of my late spouse’s RIF and mine, my entire OAS has been clawed back. So most would love my problem? My taxes have shot up and I have pre pay all 2020 taxes in 4 installments this year. My marginal tax rate is about 43% my average tax 26.4%
Should I reduce my BCE holdings to recover my OAS and a notch down tax bracket, using the tax efficient TD e series or corresponding ETF’s? OR grow the dividends so the tax credits reduce my average tax rate? Someone said if you get to keep more, pay the taxes. You and your fellow boggers are invited to put me out of my misery (looking foolish for making the wrong choice)
Thank you
@Dennis: It doesn’t sound like you have done anything foolish or “wrong.” I think you would benefit from consulting a financial planner to do some careful analysis that will go beyond simply avoiding OAS clawbacks in the short-term.
In general, it probably would make sense to reduce your concentration in one high-yielding Canadian stock and shifting more toward a diversified equity portfolio—for risk management as well as potential tax benefits. But I doubt that doing so would change would significantly change your OAS clawback. You might be able to reduce it somewhat, but probably not dramatically.
As you note, an income over $120K in retirement is not a bad problem to have.
@CCP Thank you for the diversification priority. As I get older and stock picking will not be my pastime, I was wondering if your ETF portfolio models, be it TD e Index Funds (or I think you favour ETF’s,) would create the diversity with US Index, European Index Bond index. and TSX 60. I assume these are tax efficient and some will do much better than others and would need reballancing. Would using reductions in BCE holdings and diverting divedends, I can pay taxes but also invest the rest in ETF’s that offer this diversity ?
I agree that my OAS may be a thing of the past.. What is your take on an average tax rate of 24.6% with a marginal tax rate of 43.41%. The fees and costs for investing is one thing. The CRA on the other hand, does serious financial damage! Eg In June I paid a big chunk for 2019 taxes and starting right away, the CRA wanted all my 2020 taxes in 4 installments this year. It is not easy to find that type of money so quickly.
Dan,
Excellent article! I have a national bank direct brokerage a/c and am buying TD e series funds on a preauthorized basis without any commissions. I am planning to commute my DB pension & invest. Would you suggest TD ETF’s from the lumpsum in tranches or TD e series with regular contributions for dollar cost averaging?
@Tony: I can’t make recommendations without understanding your situation. But in general, I don’t think you need to invest a commuted pension in tranches. It presumably has been invested for many years and it’s just been moved to cash to make the transfer. I would not consider this a new entry point into the market.
And if you decide to use ETFs, I don’t think TD’s are the best choice (although they are probably just fine). There’s no need to be consistent by using TD products for both mutual funds and ETFs.
Hi Dan, thanks for the great article. I’ve recently switched over to the TD e-Series Funds, and I have monthly contributions set-up for both my RRSP and TFSA. Currently I have most of my money in my RRSP, which I will continue to contribute to as I pay off my First Time Homebuyer’s Plan. Once that has been paid off, I have decided it is in my best interest to max out my TFSA first. Would you recommend investing in the same funds in both accounts, or should I diversify even further?
@Carly: The four “core” funds provide very good diversification, and there is nothing else in the e-Series lineup that’s worth adding to the portfolio. And you can certainly hold the same four funds in both accounts to keep things simple.
Nothing else worth adding? How about he NASDAQ index fund :)
You said that «(If you’re able to confirm availability at other brokerages, please share this in the comments section.)» I tried to buy TD e-series index funds on «Desjardins Courtage en ligne (Disnat)», and it works! https://www.disnat.com/
TD offers these e-series funds, other than Ishares and Vanguard – do other banks offer similar, i.e. RBC?
i have a RDSP of which I had been investing 100% safe with GIC’s until now – as rates have plummeted – looking for safe safe safe alternatives – index funds 70%bonds minimum and the rest stocks – thus 70/30 split – thanx for your feedback
@John: Does the RDSP allow you to hold only RBC products? If so, there is indeed a family of RBC index funds, which are somewhat more expensive than TD’s but otherwise very similar:
https://canadiancouchpotato.com/2017/07/07/rbc-revamps-its-index-fund-lineup/
Hi Dan,
Thank you for your clear and accessible articles. I’m have a question regarding what exactly this change in underlying holdings means. If these e-Series funds will instead use one of TD’s index ETFs as their underlying holdings – does that mean that the e-series fund (e.g., the TD US Index Fund) will now own ETF shares (with the ETF then tracking, for example, Solactive US Large Cap Index), or do the e-series funds now themselves own a basket of stocks identical/closely similar to that included in the Solactive US Large Cap Index (instead of those compromising the S&P 500 as used previously for the TD US Index Fund)?
I ask this because one of the advantages of an index mutual fund in my mind is that mutual funds trade at their net asset value, eliminating the risk of bid-ask spreads. If the e-series TD funds now simply own ETFs (with higher MERs than the underlying ETF), why buy something that has repackaged an ETF for higher fees?
I hope the question makes sense. Thank you again for your time.
@TR: The e-Series funds hold the ETFs, which in turn hold the underlying stocks. This “wrap” structure is quite common in the industry. It’s true that you can buy the ETF instead and pay a lower MER, but this has always been true. The reason you might choose mutual funds instead are the conveniences: no commission to buy and sell, no need to trade on the exchange, ability to set up automatic contributions, and so on. See the table of pros and cons on my Model Portfolios page:
https://canadiancouchpotato.com/model-portfolios/
Dan, On these index fund how do the dividends of the underlying equities factor into the performance? Are they all held in DRIP accounts or to the holders take the dividends as profit on top of the MER fees?
@wilf: All mutual fund and ETF investors receive the full benefit of the dividends from the underlying stocks: usually these are reinvested in mutual funds, but you can take them in cash if you prefer. The performance of all mutual funds and ETFs are reported with dividends included.
Dan, really appreciate you work and material on CCP.
Are there any alternative options you can recommend to TD e-series funds? I would like to go with the funds options, mainly because of smaller, more frequent automated contributions that I’ll be setting up. However, I am restricted from buying TD funds due to my employer being the auditor.
Any similar funds you can recommend from another provider? Thanks in advance.
@Ant D: The next-cheapest option is probably the RBC index funds. There have been some changes since this post was written, but the funds names are the same and the links still work:
https://canadiancouchpotato.com/2017/07/07/rbc-revamps-its-index-fund-lineup/
I wanted to set up an e-series mutual fund account for my daughters RESP and I was told I they didn’t offer that option anymore. From what I understand I can still purchase TD e-series mutual funds through a TD direct investing account.
If I purchase a TD e-series mutual fund through TD direct will I be charged a flat trading fee like when I purchase a ETF that is openly traded?
@richard: If you open a TD Direct account you will not pay any commissions to buy or sell the e-Series funds. That is the primary advantage of using mutual funds rather than ETFs.
@mark from July 6 stated that the e-Series was not available through RBC Direct Investing.
I just wanted to confirm that the TD e-Series is definitely available through RBC Direct Investing! Purchase was successfully completed this past week. Using the fund code to search may be most effective, but they are definitely there.
@Sebastian: Thanks, this is good news!
Hi Dan,
What are your thoughts on TD’s new one-click ETFs vs the the mutual fund e-series? There’s no fee for purchasing these ETFs in the TD GoalAssist App, automatic purchasing plans can be set up, and the MER (,25) is also lower.
Is there any disadvantage to these one-click ETFs that I’m not realizing?
TIA
@Rob: The TD One-Click portfolios are actively managed, and they are full of TD’s “smart beta” ETFs. If you use TD’s Goal Assist app, I would suggest building your portfolio from TD’s traditional index ETFs:
TD Canadian Equity Index ETF (TTP)
TD U.S. Equity Index ETF (TPU)
TD International Equity Index ETF (TPE)
TD Canadian Aggregate Bond Index ETF (TDB)
These ETFs are the underlying holdings in the e-Series mutual funds:
https://canadiancouchpotato.com/2019/08/30/td-e-series-funds-the-next-generation/
Hi ! My question is similar to Rob’s. I am currently using TD Direct investing to invest in TD e-series (30%CDN, 30%US, 30%International and 10%Bonds) within a TFSA and an RSP. Should I be switching to the new TD Goal Assist app to save on MER for my investments ? As I understand from a previous post, I would not have access to the e-series TD funds, but would have to switch to the following ETFs :
TD Canadian Equity Index ETF (TTP)
TD U.S. Equity Index ETF (TPU)
TD International Equity Index ETF (TPE)
TD Canadian Aggregate Bond Index ETF (TDB)
I have been investing with TD Direct investing and the e-series funds for 10 years now and and am quite used to it, is the switch worth it ? Thanks in advance !
@Melissa: If you have been comfortable with the e-Series funds for 10 years, I would be hesitant to switch to a new platform to save a small amount in MER. If you’re curious, you could open one account at Goal Assist to test drive it before transferring your whole portfolio.
I know that buying and selling TD e-series with TD direct investing is free. But if I am with RBC brokerage, will buying and selling TD e-series free as well? Thanks in advance
@Kem: Yes, buying and selling any mutual fund is free at RBC Direct.
Wow I caught you in a good time. Thank you for the response! I am a big fan and thank you so much for opening my eyes in investing! Just wondering, my parents have an RBC mutual fund. I had suggested to them to switch it to a TD e-series. I know this will be a hassle. I am assuming it will have to be them selling their mutual fund and then buying the different TD e-series. Or do you know an easier way of going about with this? It would be nice if their fund manager, can just switch their mutual fund to the TD e-series for them
@Kem: If they are working with an advisor, then it’s not likely they can make the transactions themselves. And an RBC advisor won’t use the TD e-Series funds: these are only for DIY investors.
Hi All,
My employer offers group TFSA and investment option provided are segregated fund tracking the index ( S&P 500, S&P/TSX, MCSI EAFE, FTSE Bond) and the MER is similar to TD e-series fund.. Should I invest with my employer group TFSA or move to TD e-series..
@Ram: If your employer offers a matching contribution then it would make sense to maximize that. If not, then a self-directed account would likely offer more flexibility.