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I'm looking at e-Series funds offered by TD. They have low MERs and seem to offer a good low cost alternative to traditional mutual funds. What do you guys think? Am I better off with ETFs? Why would one choose one over the other given that my investment portfolio is not that large.

Chris W. Rea
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M.Attia
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2 Answers2

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M Attia, the advantages of the TD e-series are that they are a low cost way to index your portfolio as well it gives you to opportunity to invest small amounts at a time. With ETF's, purchasing small amounts at a time would simply get too expensive.

Million Dollar Journey
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TD e-series index funds are great for regular contributions every paycheck since there is no trading commission. The personal finance blog "Canadian Couch Potato" has great examples of what they call "model portfolios" and one consists of entirely TD e-series index funds. Check it out: http://canadiancouchpotato.com/model-portfolios-2/

The e-series portfolio that is described in the Model Portfolios (linked above) made returns of just over 10%. This is very similar to the ETF Model Portolio.

One thing to remember is that these funds have a 30 day no sell time frame, otherwise a 2% fee is applied to the funds you withdraw.

eniacAvenger
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