In 2018, Canadian passive funds increased their market share from 10.8% to 11.5% on the back of a positive flow of $10 billion. Meanwhile, Canadian active funds attracted $5 billion. We estimate that Canadian passive funds post a weighted average Management Expense Ratio of 0.31%, compared to a substantial 1.67% for active funds. In the U.S., passive funds increased their market share from 35% to 37%. U.S. passive funds attracted $453 billion. Meanwhile, active funds experienced an outflow of $304 billion.
There is a better way to build an index fund portfolio than accepting the market cap weights of stocks.Simplicity is a beautiful thing when it comes to investing.
How to estimate future stock and bond returns when creating a financial plan
This paper reviews the risk of a capital gains distribution specific to Vanguard ETFs, more specifically from the perspective of Canadian taxable investors. We conclude that Vanguard’s multiple-share-class structure is very unlikely to trigger large capital gains distributions.
ESG and SRI investments are becoming more prevalent in the investment universe. This document covers the three main strategies of ESG investing: passive, integration, and active. We review the implementation of each strategy, the consequences for portfolio returns, and we recommend some options for investing according to ESG.
One of the most common questions that I am asked is “should I invest in real estate?” Even more common than this question is the matter of fact statement that real estate is a great investment.
This report describes the competitive landscape for passively and actively managed funds over the last twelve years in Canada and the United States.
Asset allocation requires investors to determine the appropriate allocation of each asset class – Canadian equities, US equities, International equities, fixed income – in their portfolio.
We introduce the Deckards who are just starting their retirement. Like many retirees, they are concerned about how best to structure withdrawals from their investments to fund their retirement.
The key challenge for most retirees is to create a stable income for their lifetime from investment capital that fluctuates in value.