Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
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  • Ottawa, Ontario K1S 2E1

Why Aren’t More Canadians Switching to Index Funds?

June 2, 2017 - 2 comments

First, the good news: At the end of 2016, 11.3% of Canadians’ investment fund assets were held in index funds and similar passively managed products. That’s a start. But compared to our U.S. neighbors at 34% of the same, we’re slow on moving away from over-priced, underperforming actively managed funds and into index funds.


Why are we lagging behind? In large part, I believe it’s because your banker or commission-based advisor is often failing to recommend the solutions that are in your best interests. Their complex compensation models aren’t encouraging them to sit on the same side of the table as you. And regulators aren’t sufficiently requiring them to do so.

 For indexing to become the same movement here that it’s become in the U.S., we’ve got to talk about simple fees versus complex commissions. We need to differentiate fiduciary from merely suitable advice. We need to continue promoting clear versus confusing cost disclosures. 

Most of all, we need people like you and me to recognize there’s a better way, and insist that we get it. Common sense? You bet. To join our movement, check out today’s video, subscribe to Common Sense Investing, and send me your own questions to address.

By: Ben Felix with 2 comments.
  10/08/2017 3:13:20 PM
Benjamin Felix
Hi Sunny,
I’m so glad that you find the videos useful! The subscribe button and bell are visible on the YouTube interface, and require you to be signed in to your YouTube account. Common Sense Investing is referring to the YouTube channel. If you don’t want to sign up for YouTube, but still want to keep track of my new videos, you can sign up for our newsletter here: You can also check back every two weeks for a new video!
  02/08/2017 9:34:26 PM
sunny devine
Hi Ben, thanks for your great videos on the problems with mutual funds. By the way... I don't see any 'bell' to subscribe. And I don't see how to subscribe to Common Sense Investing. Is it the Youtube channel you're referring to? I'm on the website. (and I don't use social media. I use websites, Youtube, email and phones, lol). Thanks!

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