Q: Good morning,
A general question regarding etf's versus mutual funds. It is commonly accepted that except for rare occassions it is better to own etf's as oppossed to mutual funds. This because of the high mer's and relatively poor performance of mutual funds. In checking this thesis out for a friend,though, i find that his funds see. To have vastly outperformed the tsx. In the case i am showing you it is Franklin Bisset Canadian Equity. I checked it out on Morningstar. Am i missing something here? I imagine it is because the mer fee comes around every year and even though the fund beats the index over say a five year or ten year period, those fees dig deep. Having trouble understanding how you would calculate this.
Thanks claire
1 Yr 3 Yr * 5 Yr * 10 Yr *
Growth of 10,000 9,495 10,463 9,564 12,900 14,032 16,826
Fund -5.05 4.63 -4.36 8.86 7.01 5.34
+/- S&P/TSX Composite TR -0.78 2.03 -2.18 2.37 2.83 -0.11
+/- Category -2.28 0.98 -3.51 0.78 2.09 0.69
% Rank in Cat 77 30 86 40 17 26
# of Funds in Cat 427 476 425 308 228 97
* Annualized returns.
Data as of 04/11/2015. Currency is displayed in CAD.
A general question regarding etf's versus mutual funds. It is commonly accepted that except for rare occassions it is better to own etf's as oppossed to mutual funds. This because of the high mer's and relatively poor performance of mutual funds. In checking this thesis out for a friend,though, i find that his funds see. To have vastly outperformed the tsx. In the case i am showing you it is Franklin Bisset Canadian Equity. I checked it out on Morningstar. Am i missing something here? I imagine it is because the mer fee comes around every year and even though the fund beats the index over say a five year or ten year period, those fees dig deep. Having trouble understanding how you would calculate this.
Thanks claire
1 Yr 3 Yr * 5 Yr * 10 Yr *
Growth of 10,000 9,495 10,463 9,564 12,900 14,032 16,826
Fund -5.05 4.63 -4.36 8.86 7.01 5.34
+/- S&P/TSX Composite TR -0.78 2.03 -2.18 2.37 2.83 -0.11
+/- Category -2.28 0.98 -3.51 0.78 2.09 0.69
% Rank in Cat 77 30 86 40 17 26
# of Funds in Cat 427 476 425 308 228 97
* Annualized returns.
Data as of 04/11/2015. Currency is displayed in CAD.
