Investing

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

  • Last Updated:
  • Jul 16th, 2017 6:13 pm
Sr. Member
User avatar
Feb 1, 2012
582 posts
458 upvotes
TORONTO
yellowlight18 wrote:
Jul 9th, 2017 1:48 pm
So I recently transferred approximately 27k to a TDDI LIRA and went with a Assertive CCP model portfolio (25% to each of the 4 TD e-series securities) and after 1 month its already down $800. Each of the securities is losing making my personal rate of return -2.62% so far.

Unless I not understanding something, how exactly does one just put money into the e-series and sit and forget about it, when its seems to be headed in a downward trend. In other words, how are people people 8% rate of return on these 4 securities year to year?

Am I doing something wrong?
It is helpful to look at history to understand how the stock market recovers from corrections and bear markets:

May 1946 to May 1947. Stocks plunge 28.4%.
June 1948 to June 1949. Stocks decline 20.6%.
June 1950 to July 1950. Stocks fall 14%.
July 1957 to October 1957. Stocks fall 20.7%.
January 1962 to June 1962. Stocks plunge 26.4%
February 1966 to October 1966. Stocks fall 22.2%.
November 1968 to May 1970. Stocks plunge 36.1%.
April 1973 to October 1974. Stocks plunge 48%
September 1976 to March 1978. Stocks fall 19.4%.
February 1980 to March 1980. Stocks fall 17.1%.
November 1980 to August 1982. Stocks fall 27.1%.
August 1987 to December 1987. Stocks fall 33.5%.
July 1990 to October 1990. Stocks fall 19.9%.
July 1998 to August 1998. Stocks fall 19.3%.
March 2000 to October 2002. Stocks plummet 49.1%.
November 2002 to March 2003. Stocks fall 14.7%
October 2007 to March 2009. Stocks plummet 56.8%.
April 2011 to October 2011. Stocks fall 19.4%.
June 2015 to August 2015. Stocks fall 11.9%

Stocks gained +1,100-fold during this 70-year period.
Source: https://www.fool.com/investing/general/ ... s-per.aspx

Lesson learned: Stay-the-Course
Invest your time actively and your money passively.
Deal Addict
Nov 24, 2013
3907 posts
1024 upvotes
Kingston, ON
TDB900, TDB902, TDB909, TDB911 have indeed been down over the past few weeks. Some of them are back to what they were 90 days ago, some are down below (TDB900 especially). The Canadian index that TDB900 tracks is resource-heavy, and weak oil prices combined with the recovering loonie is making its impact known. A lot of the big companies making up the TSX are cross-listed, so their valuation in USD can hold steady yet actually be lowering in CAD. SU is down 9.4% over the last 3mo in USD, but an even worse 11.57% in CAD. For a big financial example (also TSX-heavy) RY is up 1.67% over the last 3mo in USD, but down 2.29% in CAD.

On a related note, TDB902, which is unhedged, is negatively impacted when the CAD goes up, because all of its holdings are US-listed equities. Same effect with TDB911 (International Equity) starting about 2 weeks ago when news got bullish on a BoC rate hike and CAD started appreciating against global currencies.

...But the whole idea of this is long-haul investing, not short term trading. As seen above, it'll recover and then some over the long haul.
Member
Nov 17, 2014
372 posts
133 upvotes
Peterborough, ON
Yeah I've basically lost all the gains I made this year in the past few weeks. Sucks but at least I haven't gone negative, yet.
Newbie
Jan 6, 2015
20 posts
Scarborough, ON
Hi, All
Basically I am new about investing. Our investment (all family members) was handled by my father, but he passed away last year, I checked all of his selections, basically all GICs and all long term.
After all GIC done this year, my mom and I open TSFA in TD and try to max it. Now I nearly max it, and my mom has half size of mine.
When we opened TSFA, we just purchased some mutual funds which recommended by the bank rep. After several months, I think I may better check my investment on my own, so I open TD direct investing and all TSFA fund are transfered and all mutual fund are in I-series.
There are my questions.
1. If I convert I-series to d-series, any problem will show up (e.g. some fund are in negative)? Disappointed But Relieved FaceI know d-series has lower MER, that is probably the main reason.
2. Some comfort portfolio has no d-series, I may switch all of them into separate e-series, any recommendation?
3. Any fee may occur if I purchase non-TD mutual funds? Will TDDI punish you if you buy others, I am interested in RBC or BMO no-Load ones.
Stock, option and ETF are $9.99 each if I read correctly, I cannot trade too often for lower rate. Of course so far I have no intention on stock, option or ETFs, might jump into ETFs later.
4. I see TD introduce some managed ETF mutual fund this year, anyone try it? It basically has a little information, no MER as well due to they are less than 1 year. Good idea if I convert comfort portfolio into these ETF mutual fund?
5. If I sell all of my comfort portfolio, how I can get these interest or dividend, they definitely cannot use re-invert method because I sell all of them.
6. I know I am still young, in late-20s, my mom near retirement, so we use different mutual fund portfolio. Mine is 70% stock, 30% bonds, my mom is 75%bonds 25%stock, any more recommendation.
No plan to switch major bank or investment firm, not really convenient for both of us.

Thanks
Last edited by reps001 on Jul 16th, 2017 5:32 pm, edited 1 time in total.
Deal Addict
Jul 23, 2007
3164 posts
1044 upvotes
Hi,

First of all my condolences on the loss of your father last year.

I can't answer all your questions but two things I can answer. There should be no cost in switching TD funds. In my own TFSA I hold only TD e-Series funds using the same fund codes as listed in the model portfolio at Canadian Couch Potato.
Newbie
Jan 6, 2015
20 posts
Scarborough, ON
Stryker wrote:
Jul 16th, 2017 5:53 pm
Hi,

First of all my condolences on the loss of your father last year.

I can't answer all your questions but two things I can answer. There should be no cost in switching TD funds. In my own TFSA I hold only TD e-Series funds using the same fund codes as listed in the model portfolio at Canadian Couch Potato.
Thanks for quick reply.

Thanks for the answers as well. I read CCP before, so I decide to do investment on my own, as least for lower MER, 2% is a lot for long term. I think I need to calculate the right portion which fit me and my mom, since I only want to convert comfort portfolio into e-series. Large portion US equity mutual fund in my TSFA, my mom has only domestic ones ( equity and bonds )

I just edit my post, label questions for easy reading, hoping some answers for question 3,4,5.

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