OK, before you hit that unfollow button I am not suggesting that Canada’s largest mutual fund is great. That said, even with the high fees the returns have been very solid. Many Canadians have been able to build considerable wealth in some of Canada’s largest mutual funds. Let’s start with a look at the RBC Select Balanced Portfolio. It’s good. Perhaps even very good compared to the typical mutual fund in Canada.
Please note, I’ve updated this post to include the pandemic period. Returns are updated year to date, and for a one year period to August 2020. Below that section I also updated returns for 2020 and 2021 vs the iShares one ticket benchmarks. The most recent update covers the first half of 2022.
RBC Select Balanced Portfolio
It has over $38 billion in assets under management AUM. The MER is 1.94%. The last trading expense ratio listed was .06% taking the total fees to 2.0%.

Obviously this is a very ‘long running’ mutual fund. Many mutual funds get shut down or merge due to poor performance. The mutual fund industry likes to hide their mistakes and poor performance. Easy enough to just take them out of sight. Given that, it’s possible that other funds have been merged into this popular fund.
And it did not take long to find this on the site.
- This is a continuing fund resulting from a merger effective June 27, 2014.
I will look into the history. But this should be a continuous trail of funds or switches for RBC clients or fund investors who have been in this balanced asset allocation model.

The fund or series of funds has been able to grow monies almost 8 fold. If one was investing on a regular schedule they should have been able to build significant wealth. That wealth building would have been largely dependent upon the savings rate. Decent returns are present and accounted for.
Here’s the history to end of November 2019 …


That’s not too bad. It trails the lower fee Tangerine Balanced Portfolio in modest fashion by .4% annual over the last 10 years. There is some slight out-performance of the assets and the asset allocation compared to the simple Tangerine index-based approach. But that ‘out-performance’ is eaten up by the higher fees.
This is an asset allocation portfolio.

It has 35 holdings. Now that’s a busy fund. I was also able to find this …

Returns through the COVID correction
RBC’s Select Balanced Portfolio held up quite well in the market correction in 2021.
The returns are for 2020 year to date, to August 6, 2020.
- Year to date the fund is up 3.6%
- One year return 7.5%
As a benchmark, iShares one ticket XBAL Balanced Portfolio.
- Year to date the fund is up 4.6%
- One year return 10.2%
2020 returns vs benchmark.
- RBC Select Balanced Portfolio, up 10%
- iShares XBAL, up 10.6%
2021 performance update

The balanced mutual fund is on a very good run. That said it trails the benchmark ETF portfolio XBAL from iShares. Here’s the 0ne-year total returns to the end of 2021.
- XBAL 11.1%
- RBC Balanced 10.1%
The total returns are very solid, they almost keep up with 5 and 10-year numbers for the Tangerine Core Portfolios. That said, the RBC funds lag the wonderful Mawer funds.
Mawer is a great choice. They practice the art of boring, while delivering incredible returns. There is a minimum investment of $5000 required, per fund.
Returns to the end of June 2022
2022 has delivered a bear market (down 20% or more) for U.S. and international stocks. The Canadian market is in correction territory (a 10% decline or more). This MoneySense post looks at stock and bond returns in 2022.
Here is the returns update reflecting the first half of 2022.

The market correction has greatly reduced the total returns over the last year, 3-years and 5-years. The fund is down 15.56% in 2022. As a benchmark iShares XBAL is down 14.59% in 2022.
Over the last 5 years XBAL has delivered 3.98% annual vs 3.26% annual for the RBC balanced fund. Advantage ETFs.
Canada’s second biggest fund.
Next up we’ll look at the second largest fund in Canada. Here’s the more conservative Balanced Income portfolio model from RBC.
The Select Conservative Portfolio.

The returns for this portfolio have been quite solid.

Once again, the fees can get in the way in modest fashion. But a Canadian would have been able to create significant wealth in this conservative model over time.

The recent returns update.
- Year to date (to August 6, 2020) the fund is up 4.3%
- Over a one year period the returns are 7.1%
Benchmark Vanguard Conservative one ticket VCNS.
- Year to date the fund is up 5.5%
- Over a one year period the fund is up 8.5%
2020 returns vs benchmark.
- RBC Select Conservative Portfolio, up 9.5%
- iShares XCNS, up 10.3%
2021 performance update

This is a top quartile mutual fund across the board. And here’s the returns vs the benchmark, iShares Core Conservative Balanced ETF – XCNS.
One year returns to the end of 2021.
- XCNS 6.57%
- RBC Conservative 7.0%
We see that RBC fund outperforming the iShares ETF.
Returns to the end of June 2022
Here is the returns update to reflect the first half of 2022.

The benchmark iShares XCNS is down 13.52% in 2022 compared to the RBC fund’s declne of 13.18%.
Returns have been meagre for conservative funds over the last 5 years and less. That said, the ten year number of returns of over 4% annual are more in line with expectations.
Next in line, big dividends from RBC.
The RBC Canadian Dividend Fund. Yes even mutual fund investors like their big dividends.

The returns have been lackluster. Investors are handing over a generous portion of the dividends and returns to RBC, and well, to me too as I am a RBC shareholder. Stop giving me your money. Please. I’ll be OK.

That fund is under-performing by about 2% annual. That is significant of course. The simple TSX 60 ETF XIU has delivered 7% annual over the last 10 years.
On the dividend ETF front you might have a read of my review of Vanguard’s VDY vs iShares XEI. And here’s a look at the impressive PDC from Invesco.
Performance update.
Dividend funds did not keep up with the benchmark during the COVID correction, thanks mostly to Shopify. And that is, for not holding Shopify. And that would be impossible of course as that great Canadian tech company does not pay a dividend. Shopify and materials (gold) were driving the core Canadian index returns coming out of the market correction.
- Year to date in 2020 (to August 6, 2020) the fund was down 10.6%
- Over a one-year period the fund was down 7.4%
2020 returns vs benchmark.
- RBC Canadian Dividend down 2.5%
- Canadian benchmark average down 3.6%
Here’s was performance update for the Canadian Dividend ETFs in 2021.
The returns of the RBC Canadian Dividend Fund was certainly in line with ‘average’ returns.
The 2021 performance update

Here is a recent post that looks at a few of the Canadian Dividend ETFs in 2021. They are back to their winning ways. Here’s the RBC Canadian Dividend fund vs a few of the leading Canadian dividend ETFs.
These are one-year returns to the end of 2021.
- Vanguard Canadian High Dividend ETF (VDY) 36.5%
- iShares Composite High Dividend ETF (XEI) 35.6%%
- iShares Core Quality Dividend ETF (XDIV) 33.2%
- iShares Select Canadian Dividend ETF (XDV) 31.5%
- Invesco Canadian Dividend ETF (PDC) 30.2%
- RBC Canadian Dividend Fund 29.9%
- RBC Quant Canadian Dividend Leaders (RCD) 28.9%
- BMO Canadian Dividend ETF (ZDV) 28.6%
- iShares TSX Composite (XIC) 25.0%
- iShares Canadian Dividend Aristocrats (CDZ) 25.1%
- Horizons Active Dividend ETF (HAL) 24.6%
- CI First Asset Active Dividend ETF (FDV) 22.5%
The RBC fund is performing well enough. No one is getting hurt by those returns.
Returns to the end of June 2022
Here is the returns update to reflect the first half of 2022.

The RBC Dividend Fund is underperforming Vanguard’s High Dividend VDY in 2022. That said, VDY is once again a top-performing Canadian dividend fund.
VDY is down .058% in 2022 while the RBC fund is down 4.98%.
Over the last 5 years VDY is up 9.54% annual vs 6.75% for the RBC Fund.
I will soon update the Canadian dividend ETF comparisons. I expect to see the RBC Dividend Fund in the lower middle of the pack. There are better options in the ETF space.
Rob Carrick looked at Canada’s top 100.
In June of 2018 Rob Carrick of the Globe looked at the largest 100 mutual funds in Canada. Here’s a snip of the top funds. I am assuming, given the growth in assets that the top 2 funds have held their positions.

What was interesting is that the top 100 only trailed their passive benchmarks by a modest amount. Below, the .85% represents the percentage under-performance vs the benchmarks. The 1.9863 figure represents the average MER of the top 100 funds.

Why do investors do so poorly?
Too often it’s bad behaviour. Investors are investing outside of their risk tolerance level. They get nervous in periods of market corrections, and they sell when the markets are down. They do not stay invested. Buy high, sell low.
When I was performing portfolio evaluations as an advisor at Tangerine Investments, I found the problem was often the fund choices of their external advisors. They were in a ragtag mess of funds all too often. There was a lot of fund switching used by advisors to create fees (for themselves). I would often witness returns well below that of savings accounts and GICs.
There are obviously many ‘solid’ mutual funds available. And if you have a fee-based advisor they can put you in the F-series mutual funds that will chop the fees considerably. There are lower fee offerings from Tangerine, Steadyhand, Mawer and Leith Wheeler.
That said, we can often do better with lower fees and ETFs. We can lower fees even more if we create a portfolio of individual stocks.
Should you switch to ETFs?
To invest in ETFs you would have to self-direct your own investments. I think that’s the ideal route if you have the confidence and enough knowledge. You can access the greater financial plan by way of an advice-only planner.
For investment advice and a managed portfolio you can go with one of the Canadian Robo Advisors.
If you’re having a good experience with a sensible Balanced asset allocation mutual fund such as the RBC Select Balanced Portfolio you may decide to stay the course. You may have a sensible collection of Canadian, US and International mutual funds, you may be managing the risk with bond funds. Your behaviour and savings rate will be more important.
But always keep in mind those higher fees usually eat away at returns over time. All said, I’ll admit I am pleasantly surprised by these two solid balanced funds from RBC.
If you’d like a portfolio evaluation opinion you can send me a note via that contact form. Or if you think you’re getting some ‘weird’ advice from your advisor I am happy to weigh in.
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Hi Dale
Merry Christmas
I have dumped my last 2 mutual funds -class F and now 100% in dividend paying stocks
Awesome! Big thumbs up Dan. Hope all is well. Happy Holidays.
Dale
The PH&N Balanced fund made up of a more concentrated mix of RBC and PH&N funds is available in D series with a 0.88% MER which should be available in most discount brokerages and is likely a better option. I understand you picked the RBC fund due to it’s large size, but it’s interesting that RBC has a better option they offer.
Thanks Devin, yes I was looking at the master D series list for Canadians. But if one is at a discount brokerage they might as well develop an ETF portfolio or a one ticket? I’ll do a comparison of ETF vs PH&N D series. That’s a great fund line up that RBC now owns.
There is some ph&n in the funds from this post 🙂
Dale
With a 1.94% MER and an undisclosed mgmt. fee, I would imagine TNL@RBC is profiting handsomely. I’ll pass thanks. Happy Holidays from Bonaire (Dutch Caribbean), where it’s currently 29 degreed and sunny.
Hi Rob, ha, I’m jealous. Was talking to my brother yesterday about a schedule for getting his sailboat down to the BVI’s. I’m hoping a year this Fall. Would then have to stay into that Christmas. Thanks for stopping by, and Happy Holidays.
Dale
So many Canadians put so much money into these bank mutual funds when there weren’t many other options other than individual stocks.
Now there are so many better, less expensive and more profitable ETF options out there.
Hi Marko, yes, but so many Canadians have no idea, nor do they care. They simply go to the bank and do as they’re told. That’s changing though for newer generations of investors. The tide has turned. Many will stay stuck in their bank funds. I think that’s just the way it is.
Dale
Sadly, I think you are spot on with your observations Dale 🙁
We certainly don’t give up on ’em. I used to move them over to Tangerine ‘as a job’. It was easy most of the time. We had great success. Just show them the numbers on fees and returns.
Dale
I am one of those Canadians and have very limited time to extensively research. However, I do stumble upon a good informative site like this one, from time to time. Are you able to review the PHN High Yield Bond Fund ? I’m curious to know your thoughts on it and whether it’s worth staying the course on it or not.
I will take a look, thanks.
Dale
Dale, I’m curious why there’s no mention of the Mawer Balanced Fund in your critique of mutual funds in the Canada Fund Global Neutral Balanced category. Mawer’s performance numbers far exceed those of the RBC Select Balanced Portfolio fund. Also Mawer’s fund MER is a full percentage point lower than the RBC fund.
https://www.morningstar.ca/ca/report/fund/performance.aspx?t=0P0000714D&FundServCode=MAW104@7&lang=en-CA
Hi Bernie that was just a look at the behemoths. The there here, or what I was observing is that any investors who have been in those top 2 funds for a while and were able to stay invested, the returns were surprisingly solid. So many Canadians are in those top funds. I was curious as to ‘what’s going on’. Fortunately more monies are now flowing to low fee ETFs.
I did mention Mawer in the post and the certainly have a permanent spot on my site. 🙂
I will do a Mawer post for sure. I believe you need a mil to get the funds and the advice.
Dale
Yeah its $1M minimum net worth if one wants to go the Mawer Investment Counselling route. I don’t see the need for an advisor if one is simply invested in mutual funds or ETFs. For self-directed investors, Mawer Mutual Funds are available for purchase commission free through most major online discount brokerages, with the exception of RBC Direct Investing. A minimum initial purchase of $5,000 per fund, per account is required. Once the initial minimum is met, there are no minimum requirements for additional investments. Mawer funds have lower MERs than most other mutual funds, don’t have trailer fees and typically outperform other mutual funds, ETFs and their index benchmarks. About the only thing Mawer funds don’t have are high distribution yields. Most Mawer investors would need to harvest units to enhance their income in retirement.
Thanks Bernie, yes that is an awesome company. Be boring. Make money.
A great option for sure, of course.
Dale
Returns are updated for 2020.
Dale