Investing

TD e-Series funds Megathread (Post all your questions here)

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  • Feb 3rd, 2024 8:10 am
Deal Fanatic
Jan 31, 2007
6371 posts
6733 upvotes
Center of Canada
mathbes wrote: If you are investing for long term, I always remember in my head this FAMOUS quote : The best time to start investing was yesterday.

Also,

1- Don t check the market every day. Its will make you crazy.
2- Never try to time the market.
3- Be constant in your investment. Invest every payroll.
4- Re-balance ONCE a year.

I used these 4 rules, since 2016

Heres my average return in my TFSA. Sorry it is in french.

Image

I know we are in a BULL market but I am here for the long term. ( around 17-18 years) Its will be a rollercoaster... (up and down) but I will continue to follow my 4 rules.
I done the same for over 15 years, between ETF / Fund. Just a little different:
1st: I re-balance every 6 months.
2nd: As I getting older, I shift my allocation of bonds from 15% to 20%, and now just changing to 25%.

Bonds is low now PLUS we are in bull market, which is actually good reason for me to update my bonds allocation from 20% to 25%, to capture some of those gain.
Very important thing is have clear mindset this is for my retirement. So the whole plan is for long run.
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Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
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Deal Addict
User avatar
Feb 1, 2012
2214 posts
3798 upvotes
Thunder Bay, ON
cheapshopper wrote: I am trying to understand the impact of e-series fund now holding TD ETF. In the MER point of view. Does it create a fault sense of low MER?
Because I end up paying MER for the ETF, then on top of that paying MER again for the e-series fund.

Am I getting this right?
Funds are not allowed to double dip on fees. The MER of the ETF will be zeroed out when it is held in a mutual fund that charges its own MER.


This is from the TD Mutual Fund Prospectus:
Where the Fund invests in other mutual funds, there are fees and expenses
payable by the other funds in addition to those paid by the Fund. However, no
management fees are payable by the Fund that, to a reasonable person,
would duplicate a fee payable by an underlying fund for the same service,
including if that underlying fund is a TD Exchange-Traded Fund (“TD ETF”) or
another investment fund managed by TDAM
When I was young, I was poor. Now, after years of hard work, I'm no longer young.
Deal Fanatic
Jan 31, 2007
6371 posts
6733 upvotes
Center of Canada
Deepwater wrote: Funds are not allowed to double dip on fees. The MER of the ETF will be zeroed out when it is held in a mutual fund that charges its own MER.


This is from the TD Mutual Fund Prospectus:
[/b]
Thanks for the clear answer. It is good, otherwise it can be used to milk customer , like a TDAM fund, hold another TDAM fund, which hole TD ETF "A" , which hold another TD ETF "B". All look very low MER but it all add up.
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Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Addict
Jul 8, 2013
4498 posts
6936 upvotes
Somewhere in AB
Stryker wrote: I've been thinking the last few days about building up over time an all-in-one global equity ETF in our joint non-registered account at TD Direct.

Then I read this and the comments below at CCP.

Ask the Spud: Can I Make Taxable Investing Easier?

"Yes, you will receive T3 slips for your e-Series funds and you’ll need to report these on your tax return. But you don’t need to worry about any ACB adjustments at all, because these are all done at the fund level. That’s why I mentioned these funds as an alternative to ETFs in a taxable account: the bookkeeping is much easier."

Now instead of an ETF I may decide on a 50/50 allocation to TD U.S and International e-Series especially since we'll be adding monthly.

Not having to calculate ACB's for TD e-Series would certainly make it easier for my wife if I go first.

Anything I may have missed?
That is exactly my (future) plan as well: buy TD e-series mutual funds on my non-reg account.

This is precisely for tax-reporting purposes.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
Newbie
Mar 15, 2019
10 posts
10 upvotes
Hi all, I am hoping to buy some US currency TD e-series index funds (e.g., US index fund, NASDAQ index fund) through TD Direct Investing. I am trying to figure out whether to do so using the CD or US account.

From what I understand, if you purchase it in the CAD account, the system buys in it USD and converts it into CAD (FX fee). It sits in your account in CAD. When you sell, it converts it back to USD, sell it in USD and converts it back to CAD for your CAD account (double FX fee on sale).

If you wanted to purchase it in the US account, you have to first convert your CAD to USD (FX fee) in order to purchase the funds. It is then purchased and sits in your account as USD. When you sell, it is sold in USD and you have to convert the USD back to CAD when you want to use it in Canada (single FX fee on sale).

Is all of that correct? If so, it is obvious that using the US account is the better choice but I wanted to make sure I am not missing something. Thanks in advance!
.
Deal Addict
Jul 13, 2007
1263 posts
803 upvotes
Toronto
Yukino wrote: Hi all, I am hoping to buy some US currency TD e-series index funds (e.g., US index fund, NASDAQ index fund) through TD Direct Investing. I am trying to figure out whether to do so using the CD or US account.

From what I understand, if you purchase it in the CAD account, the system buys in it USD and converts it into CAD (FX fee). It sits in your account in CAD. When you sell, it converts it back to USD, sell it in USD and converts it back to CAD for your CAD account (double FX fee on sale).

If you wanted to purchase it in the US account, you have to first convert your CAD to USD (FX fee) in order to purchase the funds. It is then purchased and sits in your account as USD. When you sell, it is sold in USD and you have to convert the USD back to CAD when you want to use it in Canada (single FX fee on sale).

Is all of that correct? If so, it is obvious that using the US account is the better choice but I wanted to make sure I am not missing something. Thanks in advance!
Don't do that. Just buy the CAD$-denominated US funds. TDB902 and TDB952 will give you the EXACT same returns. So just buy TDB902.

Same deal with TDB953 and TDB903. If you only have CAD, then just buy TDB903. Their returns will be identical.

If you're dealing with large amounts or long time periods, ETFs might be a better option because of lower MERs.
Deal Addict
Jul 15, 2009
3653 posts
3048 upvotes
Yukino wrote: Hi all, I am hoping to buy some US currency TD e-series index funds (e.g., US index fund, NASDAQ index fund) through TD Direct Investing. I am trying to figure out whether to do so using the CD or US account.

From what I understand, if you purchase it in the CAD account, the system buys in it USD and converts it into CAD (FX fee). It sits in your account in CAD. When you sell, it converts it back to USD, sell it in USD and converts it back to CAD for your CAD account (double FX fee on sale).

If you wanted to purchase it in the US account, you have to first convert your CAD to USD (FX fee) in order to purchase the funds. It is then purchased and sits in your account as USD. When you sell, it is sold in USD and you have to convert the USD back to CAD when you want to use it in Canada (single FX fee on sale).

Is all of that correct? If so, it is obvious that using the US account is the better choice but I wanted to make sure I am not missing something. Thanks in advance!
For some of the funds, there are CAD versions and USD versions of the same fund. If you have CAD, buy the CAD version. If you have USD, buy the USD version.

Some funds only come in CAD.
Newbie
Mar 15, 2019
10 posts
10 upvotes
HammerRFDer wrote: Don't do that. Just buy the CAD$-denominated US funds. TDB902 and TDB952 will give you the EXACT same returns. So just buy TDB902.

Same deal with TDB953 and TDB903. If you only have CAD, then just buy TDB903. Their returns will be identical.

If you're dealing with large amounts or long time periods, ETFs might be a better option because of lower MERs.
bubak wrote: For some of the funds, there are CAD versions and USD versions of the same fund. If you have CAD, buy the CAD version. If you have USD, buy the USD version.

Some funds only come in CAD.
Thanks for these, particularly the actual symbols! I did not know there were CAD versions of the US mutual funds.
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Deal Expert
User avatar
Dec 12, 2009
29541 posts
20458 upvotes
smartie wrote: I have a question
TDB902 price increased 0.1% on last Friday

https://marketsandresearch.td.com/tdwca ... /ca/TDB902

S&P 500 increased 0.33%

What's the reason behind the gap between 0.1% vs 0.33%.

I know there is an exchange rate impact, but is there any other reasons behind?

Thanks
I think it is currency exchange impact. The USD is sinking like a rock relative to the CAD. ZSP gained 0.09% on Friday.
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Deal Addict
Aug 14, 2007
2434 posts
328 upvotes
Waterloo
I currently have a TD eseries mutual funds account for my RRSP. I was wanting to open an equivalent RESP account. I contacted TD and they said they no longer offer a TD Mutual Funds account and the RESP account needs to be opened up in Direct Investing which needs a 15k minimum or $100/month direct deposit to avoid fees. They said I can also transfer my RRSP over and that balance would be included in the minimum, so I wouldnt have any fees/

I am just wondering if this is true - and if so, is there any disadvantage on switching over to DI, or was the person I talking to misinformed?
Deal Addict
Feb 4, 2019
2687 posts
4430 upvotes
BC
Vladimir wrote: I currently have a TD eseries mutual funds account for my RRSP. I was wanting to open an equivalent RESP account. I contacted TD and they said they no longer offer a TD Mutual Funds account and the RESP account needs to be opened up in Direct Investing which needs a 15k minimum or $100/month direct deposit to avoid fees. They said I can also transfer my RRSP over and that balance would be included in the minimum, so I wouldnt have any fees/

I am just wondering if this is true - and if so, is there any disadvantage on switching over to DI, or was the person I talking to misinformed?
True AFAIK. I had my TD e-series mutual fund accounts converted to TD DI 3 or 4 years ago. I've never been charged fees for TD DI apart from trading commissions for ETFs. If you meet the minimum balance and stick with e-series you won't pay any fees.
Sr. Member
Dec 26, 2013
543 posts
182 upvotes
Ottawa
I know TDDI offers commission free trades on some TD products, does this include eseries?
Deal Addict
Feb 4, 2019
2687 posts
4430 upvotes
BC
wilyam wrote: I know TDDI offers commission free trades on some TD products, does this include eseries?
There is no buy/sell commission on any mutual fund in TD DI.
Deal Addict
Jul 8, 2013
4498 posts
6936 upvotes
Somewhere in AB
rhw123 wrote: There is no buy/sell commission on any mutual fund in TD DI.
Yup. Furthermore, there is no bid-ask spread and no other commissions or fees whatsoever, other than the MER.

TD e-series products are so fantastic that unless you have $500K+ invested, it makes sense to start and keep with TD e-series mutual funds.

The funds are easy to buy, easy to upkeep, and super simple to re-balance. All of my RESPs are in TD e-series mutual funds.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
Deal Addict
Apr 10, 2002
2350 posts
876 upvotes
Central Ontario
TuxedoBlack wrote: TD e-series products are so fantastic that unless you have $500K+ invested, it makes sense to start and keep with TD e-series mutual funds.
Pardon my naivety, but what happens after I've got >$500K invested? I've had good, if not great, success with e-series and this number you quote is approaching...
Deal Addict
Feb 4, 2019
2687 posts
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BC
JustMike wrote: Pardon my naivety, but what happens after I've got >$500K invested? I've had good, if not great, success with e-series and this number you quote is approaching...
Nothing necessarily happens but some people switch to index ETFs with lower MER once their number passes a certain threshold. The more you have invested, the more significant the difference in cost. However, it's still not a huge difference and the simplicity of the e-series MFs is worth something too so for some it may not be worth the hassle. IMHO it's completely fine to stick with e-series.
Deal Addict
Jul 8, 2013
4498 posts
6936 upvotes
Somewhere in AB
JustMike wrote: Pardon my naivety, but what happens after I've got >$500K invested? I've had good, if not great, success with e-series and this number you quote is approaching...
Great question. I was too focused on fees and switched my RRSP from e-series to VEQT/VAB when the balance became large enough.

I now realize that it would have been simpler and easier on my mind to just have kept with the e-series mutual funds. I made a mistake in switching and in hindsight, I should have stayed with the e-series mutual funds.

So if you were to switch, you'd save some dollars in fees. You have to figure out whether it's worth it or not. In other words, try not to make the same mistake as I did by switching needlessly, as the small savings is not worth the mental gymnastics that I now endure by figuring out when to buy, etc.
"You don’t need to sacrifice stability, common sense, and comfort if a 1% bond still lets you achieve your financial goals." M. Housel
Sr. Member
Dec 26, 2013
543 posts
182 upvotes
Ottawa
TuxedoBlack wrote: Great question. I was too focused on fees and switched my RRSP from e-series to VEQT/VAB when the balance became large enough.

I now realize that it would have been simpler and easier on my mind to just have kept with the e-series mutual funds. I made a mistake in switching and in hindsight, I should have stayed with the e-series mutual funds.

So if you were to switch, you'd save some dollars in fees. You have to figure out whether it's worth it or not. In other words, try not to make the same mistake as I did by switching needlessly, as the small savings is not worth the mental gymnastics that I now endure by figuring out when to buy, etc.
would an effective strategy be to put monthly deposits in e-series (saving on commissions), then switch over once a year to ETFs?
Deal Addict
Jul 24, 2003
2205 posts
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wilyam wrote: would an effective strategy be to put monthly deposits in e-series (saving on commissions), then switch over once a year to ETFs?
Yes

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