Q: Invested $25,000.00 about 2% portfolio weighting in our income focused and only portfolio in 2012 in BMO Monthly Dividend Ltd. fund and currently valued at ~$41,000.00 about 3.5% weighting of our portfolio..
I would appreciate your opinion of this performance. Thanks in advaance
I would appreciate your opinion of this performance. Thanks in advaance
5i Research Answer:
MER is 1.57%, which is of course high. 10-year return is 4.89%, since-inception is 5.46%. Five year is 4.19%. If we compare to a simple dividend ETF such as CDZ, five year there is 7.83%, so the fund has not exactly outperformed. But it does have 41% bond exposure, which certainly would have hurt performance recently. But even a simply balanced ETF such as VBAL beats it by more than two percentage points (5 years 6.62%). The fund lost money in 2018 (2%) and 2022 (9.2%). None of its holdings stand out: it owns mostly generic Canadian large cap stocks. All in, a low cost ETF is likely going to continue to beat this fund.