Q: Hi.
Looking to replace RBC 2025 retirement portfolio fund with an ETF in my RRSP. what do you suggest? I won't need the money for 8 or more years.
Thanks.
Looking to replace RBC 2025 retirement portfolio fund with an ETF in my RRSP. what do you suggest? I won't need the money for 8 or more years.
Thanks.
5i Research Answer:
The fund is 50% equities, with some US and other epxosure as well as fixed income securities. We think VBAL would be a good replacement, though it does have slightly higher stock exposure (60%). But fees on the fund are 1.69%, vs 0.25% for the ETF. Five year performance is better on the ETF (5.43% vs 4.5%). We do note that the fund is 1st quartile, as least versus other mutual funds. But we would be fine with a switch. Note also the fund is specifically designed for someone retiring next year, so we would ensure any switches matches an investors' overall objectives.