schmidtjas
Recycles dryer sheets
I put away $125 per week for my RRSP (6500 per year) and at tax time I tend to purchase on top of that another $5000. Currently the 125$ is added every week to three different mutual funds. I'm moving away from this and into either index mutual funds or index ETFs. My question is geared towards the ETFs. I would likely have four ETFs in my portfolio, at least initially.
It seems like if I rely on ETFs that I would be better off saving a big chunk and investing all at once to minimize the floatation costs of purchasing new shares. The mutual fund index funds have a higher MER (in Canada I'm finding the MER of mutual fund index funds tends to range between 0.5% to 1.0% except for TD, whereas the ETFs like iShares tend to be half of that), but seem to have no floatation costs. In the end intuitively it seems like the MER is more important of the two, but if I were to buy ETFs every week the floatation cost per trade would kill me! So what I'm trying to figure out is a good strategy to use for ETFs. What do people on here who buy shares for the long haul do? Once a year? Once a quarter?
BTW I'm really glad I stumbled onto this forum, I feel like I've learned so much in the year or so that I've been a member! Of course each time I learn something new I find that I realize how much more I need to learn!
It seems like if I rely on ETFs that I would be better off saving a big chunk and investing all at once to minimize the floatation costs of purchasing new shares. The mutual fund index funds have a higher MER (in Canada I'm finding the MER of mutual fund index funds tends to range between 0.5% to 1.0% except for TD, whereas the ETFs like iShares tend to be half of that), but seem to have no floatation costs. In the end intuitively it seems like the MER is more important of the two, but if I were to buy ETFs every week the floatation cost per trade would kill me! So what I'm trying to figure out is a good strategy to use for ETFs. What do people on here who buy shares for the long haul do? Once a year? Once a quarter?
BTW I'm really glad I stumbled onto this forum, I feel like I've learned so much in the year or so that I've been a member! Of course each time I learn something new I find that I realize how much more I need to learn!