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Vanguard S&P 500 Index ETF (VFV)
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RBC Canadian Index Fund Series F (RBF5733)
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RBC U.S. Index Fund Series F (RBF5737)
Q: Hello,
I currently hold RBF5737 & RBF5733 in my RRSP as it was the only way to get index exposure in my work contribution plan. I was wondering you would consider selling the two RBF funds and replace them with VFV for a lower fee and achieving a bit of a dividend or is there a reason to leave it as is?
Thank you.
I currently hold RBF5737 & RBF5733 in my RRSP as it was the only way to get index exposure in my work contribution plan. I was wondering you would consider selling the two RBF funds and replace them with VFV for a lower fee and achieving a bit of a dividend or is there a reason to leave it as is?
Thank you.
5i Research Answer:
RBF5737: basically tracks a US index fund, MER is currently around 0.21%
RBF5733: tracks a Canadian index, MER is currently around 0.17%
While with VFV, Vanguard offers an identical product to track the S&P 500 with a MER of 0.09% and an indicated dividend yield of 1.14%
While there is not a dramatic difference, and switching takes out Canadian exposure, we think switching could still make sense here, if an investor is comfortable with all-US exposure.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.