While the vast majority of Canadian mutual funds are very ‘weak’, there are a couple of bright spots. Mawer might head the list. They have perfected the art of boring. Tangerine has some very good offerings. Tangerine offers index-based balanced couch potato portfolios. Also, Canada’s largest mutual funds from RBC are not that bad. In fact, they’re good. They almost keep pace with the Tangerine core portfolios. We’re looking at Canadian mutual funds on the Sunday Reads.
I’ve updated this post that now includes the 2021 returns and comparisons to some reasonable benchmarks. Canada’s largest mutual fund, the RBC Select Balanced Portfolio is not that bad. In that post I also look at the RBC Select Conservative Portfolio and the RBC Dividend Fund. If you insist on investing in mutual funds, that’s a good post to hit and share with friends and family.
On MoneySense Jonathan Chevreau reminds us that not all mutual funds in Canada are bad.
The 2021 returns for the ETF Portfolios, frames the advantage that we typically find with a low-fee ETF approach compared to mutual funds in Canada. From that post –
5-year annual returns, ETF portfolio vs TD
- Balanced growth ETF 10.8%
- TD Comfort growth 6.3%
There’s a better way to invest folks. They are called exchange traded funds – ETFs. They built a better mouse trap. They are cheaper, better, simple.
Check out the ultimate asset allocation ETF page.
My MoneySense column, two years of pandemic
My latest for MoneySense looks back with the two year anniversary of the pandemic. I wrote my first piece on the pandemic on February 1, 2020. I look back at the major events of the last two years. I also have another peak at the Canadian and U.S. earnings season, the Russian threat, and what happens to U.S. stocks after a crappy January?
Do we need central bankers?
Here is a very brave post from John Mauldin – Time to rethink the Fed. Mauldin would suggest that in the U.S., they might somewhat blow it up and start over. The Fed is a big bubble blowing machine. Mauldin suggests that we can lay the blame for the bubbles of the past on the doorstep of the Federal Reserve.
Here’s the set up …
I believe Fed officials are largely responsible for the cycles of bubbles, booms, and busts over the last 30 years. Further, they share some of the blame (clearly not all) for the growing divisions and tribalism in our society. Much of it springs from the wealth disparity they aided and abetted.
And the closer …
The economy can manage itself (with a few rules, of course). We just need stable money, a stable economic environment, and an honest, reliable banking system. A great deal of the Fed’s activity has nothing to do with what should be its core mission. As bureaucracies do, it has grown too powerful and invented new reasons to justify its existence.
A quick video that explains the everything bubble ‘theory’. It will just take a minute …
More Sunday Reads
Here’s a good collection of international reads thanks to Banker on Fire.
In the weekend reads on My Own Advisor Mark is wondering, is another lost decade (for stocks) on the way? Mark included this podcast featuring Andrew Hallam on Build Wealth Canada. Andrew looks at how to live off your investment portfolio.
You’ll find another great weekly markets and stock wrap (plus reads) courtesy of Dividend Hawk.
There are many very good posts on The Hub this week. Jonathan Chevreau looks at the perfect storm of challenges for the Canadian investor this RRSP Season. From Jon’s post and referencing an Angus Reid survey …
2022 is poised to be a unique RRSP season because of multiple unique market conditions, the study finds: 58 per cent agree that in the face of rising consumer debt, natural disasters (climate change), Omicron, and looming hikes in interest rates, we are approaching a “perfect storm” of challenges, a figure that jumps to 65 per cent in Quebec.
Of course, if you have and financial plan, an investment plan, and you are investing within your risk tolerance level, keep on keepin’ on. Add new monies and rebalance on a regular schedule.
IT’S ALSO EASY TO BUILD THE ETF PORTFOLIO FOR RETIREMENT.
Preet says …
On Tawcan, Bob offers his favourite stocks for 2022, including 6 stocks he plans to buy. You’ll find a REIT, my Apple, a rail, a utility, a pipeline and an ETF to cover off global diversification.
All About The Dividends is all about the January dividend income.
And Rob at Passive Canadian Income is setting records with his dividend update.
On stocktrades, Dan looks at the Canadian Dividend Aristocrats.
Million Dollar Journey takes a look at RBC Direct Investing, the discount brokerage at Canada’s biggest bank.
The Maple Money Podcast looks at why NFTs might become the next big thing.
Have a great Sunday, thanks for reading and sharing. Don’t forget to follow this blog by way of that Subscribe button.
How to leave your high-fee funds behind in 2022
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OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 1.25%. You’ll find some higher rates on certain GICs. They now also offer U.S. dollar accounts. They have been awesome.
OUR CASHBACK CREDIT CARD
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