Cheap index portfolio managers?
Does anyone know of portfolio managers or investment advisers in Toronto who manage index (e.g., Couch Potato) portfolios at a reasonable cost?
I know of PWL capital, advertised on the Couch Potato website. For AUM of ~$1M, they charge around 1.25%, which is $12,500/yr. Obviously, I think this is excessive given how much work is involved with periodically rebalancing a portfolio of ETFs or index funds. Personally, I don't think their added advice is worth that price. A management fee that high significantly eats into returns over a time period of several decades.
I am asking for family members who are currently in actively managed mutual funds and not willing or able to manage their own portfolio.
Right now, I'm close to recommending the family members go with Jarislowsky. I don't completely agree with their investment philosophy, but at 0.5%, their management fee makes active investing cheaper than passive for those who don't want to manage assets themselves.
This seems like a service that would have, at least, a small niche market. Certainly, in the US, there are companies that offer this service for 0.3% - 0.4% of AUM. Why doesn't someone in Canada step up and offer cheap index portfolio management services?
I know of PWL capital, advertised on the Couch Potato website. For AUM of ~$1M, they charge around 1.25%, which is $12,500/yr. Obviously, I think this is excessive given how much work is involved with periodically rebalancing a portfolio of ETFs or index funds. Personally, I don't think their added advice is worth that price. A management fee that high significantly eats into returns over a time period of several decades.
I am asking for family members who are currently in actively managed mutual funds and not willing or able to manage their own portfolio.
Right now, I'm close to recommending the family members go with Jarislowsky. I don't completely agree with their investment philosophy, but at 0.5%, their management fee makes active investing cheaper than passive for those who don't want to manage assets themselves.
This seems like a service that would have, at least, a small niche market. Certainly, in the US, there are companies that offer this service for 0.3% - 0.4% of AUM. Why doesn't someone in Canada step up and offer cheap index portfolio management services?