Saturday, June 07, 2008

ETFs dominate Canada Cup -- and a looming threat to Canada's mutual funds - The Wealthy Boomer

ETFs dominate Canada Cup -- and a looming threat to Canada's mutual funds - The Wealthy Boomer:
"Seif said ETFs are popular because they're good for investors: 'They provide the ability to get exposure to the market and use them in multiple ways, whether for asset allocation or as a complement to stocks or active managers.'

Near the end of the session Seif took a direct shot at traditional mutual funds: 'High-fee index-hugging general mutual funds charging 2.5% a year that underperform the market just don't cut it any more. That's the reality.'"
I am always surprised that some still pay mutual funds such high fees for performance that mirrors (or worse) indexed performance.

1 comment:

Lord said...

It would be interesting to know the actual dollar-weighted investment fee of mutual funds and the percent of investment funds in them as opposed to indices, hedges, and individual accounts.