This translation has been automatically generated and has not been verified for accuracy.The polite spin on the exchange-traded funds offered by Toronto-Dominion Bank is that they have had an underwhelming impact on the marketplace so far.
The TD e-series of index mutual funds are not as cheap as the lowest-cost ETFs, but you can buy and sell them without brokerage commissions that can run as high as almost $10 per buy or sell. When you factor this into the total cost of ownership, these e-series funds can be cheaper to own for smaller accounts.One downside to e-series funds was that you had to invest in them online via TD or through its online brokerage, TD Direct Investing.
The TD Canadian Equity Index ETF has an MER of 0.06 per cent, which is at the low end for this category. But if you were to make 12 monthly purchases of this ETF in a year at TD Direct Investing’s standard stock and ETF trading commission of $9.99, your annual cost would be just less than $120. On a $25,000 account, that’s equivalent to a fee of 0.48 per cent. Add the 0.06 per cent MER for TTP and you’ve got a fee drag of 0.54 per cent. You’re better off with TD Canadian Index-e.