BMO Covered Call Canadian Banks ETF Fund
and
BMO U.S. Equity ETF Fund. This one had the most funds.
Since that time I have redeemed some funds and opened BMO Investorline account and purchased about 10 different stocks/etf's. The branch level financial advisor never calls or emails any advice period other than to say I am making about 18% and should be happy with that. Really??
2 days ago a lady from BMO investment center calls me and tells me I am paying 1% in management fees and can save ~ 0.66% by purchasing BMO95722 which shows up as BMO U.S. Equity ETF Fund. Yesterday I put in a redemption request for the balance of the BMO U.S. Equity ETF Fund (on my bank account page that name doesn't have any stock symbol) and the funds will be in my bank later this morning.
What I am trying to accomplish right now is to just make enough via investments to pay for living where I am. And hopefully some growth in the value of the investments.
The question I have is, would buying BMO95722 be the right or best choice of investments.
Thank you for any assistance with this.
While we cannot personalize responses, we believe the BMO US Equity ETF Fund is Series A, which has an MER of 0.99%, and invests in almost identical assets to BMO95722. The main difference is that BMO95722 only has an MER of 0.39%, and over a long period of time this difference in expenses does contribute meaningfully to the total return.
Over the past 10 years, BMO95722 has returned a 12.3% total return CAGR, while BMO US Equity ETF Series A has returned an 11.6% total return CAGR.
Given the significant overlap in holdings between the BMO mutual funds (BMO95722 and Series A) with the S&P 500, we would prefer the S&P 500 ETF (ZSP), which only has a 0.09% MER, and has a 10-year total return CAGR of 14.5%. Alternatively, for US dollars we like the SPY.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in SPY.