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  • Nov 14th, 2017 6:03 pm
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[OP]
Newbie
Oct 29, 2017
26 posts
1 upvote

TD E-Series

I'm looking at the CCP website and they have the TD e-series listed as their second model portfolio. Within it are have a bond, Canadian, US and International Index Fund.

I'm not really clear but what is the actual difference between the e-series and an actual ETF which also has a bond, Canadian and US/International funds.
3 replies
Sr. Member
User avatar
Feb 1, 2012
637 posts
518 upvotes
TORONTO
Finiki has good explanations of mutual funds and ETFs.
http://www.finiki.org/wiki/Mutual_fund
http://www.finiki.org/wiki/Exchange-traded_fund
http://www.finiki.org/wiki/Indexing

Mutual funds are purchased from the fund provider (TD in the case of eSeries). ETFs are mutual funds that are traded on stock exchanges.

eSeries typically have lower transaction costs but higher MERs than ETFs. Most brokers will charge $5 or $10 per order to buy ETFs (except for Questrade), whereas there is no charge to buy or sell with eSeries. With eSeries you can purchase partial units so your funds can be invested right down to the penny, whereas ETFs can only be bought as full units. eSeries are easier to automate monthly contributions whereas ETFs are more hands-on.

The underlying securities that eSeries and CCP ETFs hold are similar, except the ETFs will hold more smaller companies and emerging markets.

Long-term you will probably get better returns with ETFs but you will need to ensure you have enough $ in your account to avoid maintenance fees on a TDDI account - I think the minimum is $15k.
Invest your time actively and your money passively.
Deal Addict
User avatar
Oct 9, 2005
1030 posts
297 upvotes
Toronto
CCP talks about it in various articles, but these two have the jist of why he recommends both approaches and how to choose between the two. Remember that cost is only one (albeit important) aspect of couch potato investing. Simply getting started, formulating and sticking to a plan, and being able to sleep at night in the bed you make also important too.

Couch Potato FAQ
Ask the Spud: Switching From e-Series Funds to ETFs
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