Investing

What do Tangerine unit prices actually mean?

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  • Mar 20th, 2017 1:27 am
[OP]
Newbie
Feb 17, 2017
6 posts

What do Tangerine unit prices actually mean?

Hello,

I have a silly question. If you go to Tangerine investment funds, you can see Tang' unit prices fluctuate everyday.

Considering how high is the S&P500, and let's assume it has to go down at some point, does it mean Tangerine unit prices will also go down?

For example, is it a bad time to buy Tang. 100% equity funds? or the unit prices don't actually follow the indexes?

As a comparison I cannot find Wealthsimple unit prices anywhere on their website.

Thank you :)
16 replies
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Feb 1, 2012
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Mutual fund unit prices are set by dividing the fund's net assets by the number of units outstanding, to determine the net asset value (price) per share. So if the index a Tangerine fund follows drops, then the price of the mutual fund will drop correspondingly.

Wealthsimple does not sell their own units. Wealthsimple creates accounts that will hold a variety of ETFs according to the customer's investing profile. Those ETFs will have unit prices (that will fluctuate).

If you are worried that Tangerine Equity Growth Fund might drop, then you should invest in one of their more conservative funds that will be less volatile. Base it on your risk tolerance and investing timeline, not your emotions about market valuation.
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Feb 5, 2017
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'as high' doesn't mean anything.
Nobody knows what will happen to any of the indexes
It can go up or down
In the long run, it should go up (10-15 years horizon)
Are you going 100% equity without anything else invested ? I would suggest doing a little bit more research before committing to one particular plan
Yes Tangerine funds do follow the different indexes
So if one year the TSX is dipping 25%, that portion of the Tangerine equity fund will also lose around 25%.
But even if this does happen, you should not sell and wait for a correction (which will happen eventually).
Are you prepare for the roller coaster of a 100% equity portfolio ???
Do you need that money within the next 10 years ?
If you don't and can stomach a temporary 50% loss of value on paper, go for it
Also, waiting to invest because the markets are 'too high' is as bad if not worse than investing right before a drop because of the lost opportunity
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sabatale wrote:
Mar 6th, 2017 8:14 pm
Hello,

I have a silly question. If you go to Tangerine investment funds, you can see Tang' unit prices fluctuate everyday.

Considering how high is the S&P500, and let's assume it has to go down at some point, does it mean Tangerine unit prices will also go down?

For example, is it a bad time to buy Tang. 100% equity funds? or the unit prices don't actually follow the indexes?

As a comparison I cannot find Wealthsimple unit prices anywhere on their website.

Thank you :)
Using the fund codes listed on that page you can see the price fluctuations, e.g. INI240 Equity Growth on google finance:
https://www.google.com/finance?cid=82418589682714

You can also compare to S&P500, e.g. SPY ETF:
https://www.google.com/finance?chdnp=1& ... 2AaAp5CIBw

That one is one third S&P500, 1/3 Canadian, 1/3 global equity ... so assuming the S&P 500 went down 9% and the other two stayed flat, you should see the unit price drop by 3% (as a rough example -- it could be different because they may not be able to achieve perfect tracking of the index nor perfect 33.3% balancing at all times).

As answered already above, WS doesn't have unit prices.
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[OP]
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Feb 17, 2017
6 posts
Thank you for your answers :)

To answer the question, I don't actually go full equity. I'd like to put 60% in a 100% equity portfolio, and leave 40% in savings.
Member
Dec 27, 2005
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sabatale wrote:
Mar 7th, 2017 7:46 am
Thank you for your answers :)

To answer the question, I don't actually go full equity. I'd like to put 60% in a 100% equity portfolio, and leave 40% in savings.

that still means your investment portfolio is still 100% equity or am i wrong.
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paf wrote:
Mar 7th, 2017 8:25 am
that still means your investment portfolio is still 100% equity or am i wrong.
If he is considering that 40% as part of his part of the portfolio, then it is still a 60/40 split. That said, not sure I'd using a savings account in my portfolio since there is no growth potential when things swing the other way.
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don242 wrote:
Mar 7th, 2017 8:38 am
If he is considering that 40% as part of his part of the portfolio, then it is still a 60/40 split. That said, not sure I'd using a savings account in my portfolio since there is no growth potential when things swing the other way.
this is exactly why I was referring to . its like saying 100% investment are in my savings account
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don242 wrote:
Mar 7th, 2017 8:38 am

If he is considering that 40% as part of his part of the portfolio, then it is still a 60/40 split. That said, not sure I'd using a savings account in my portfolio since there is no growth potential when things swing the other way.
paf wrote:
Mar 7th, 2017 8:58 am
this is exactly why I was referring to . its like saying 100% investment are in my savings account
If your "investment account" is Tangerine then 0.8% savings is a valid choice for a 60/40 conservative portfolio. If equities take a hit you can rebalance ... i.e. use the cash to buy on a dip.

I routinely sweep cash out of my brokerage account and into external HISA (EQ 2%, PCF or TNG promo rates that are higher like 3.25%).

Just because the cash is moved to a different account doesn't make it not part of my "investment portfolio" and make me 100% invested in equities. I actually have a savings account called "Investment" to keep it clear :)

It just means I'm searching for the highest yield possible on funds that I want to be "cash".

40% cash is rather high IMO, but to each their own. It's a valid starting point anyways if you don't want to lump sum invest all at once.
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[OP]
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Feb 17, 2017
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@ace: Yes, that's exactly what I was trying to say. Maybe 70/30 is more adequate.

I wanted to got with Wealthsimple at first, but TNG is offering me 1% off the initial deposit. Convenient.

Savings are 2.4% until 2018 so I will have to hunt for matching rates at some point, but I don't mind the extra work.

My pain point was really the "unit price" concept. I understand the value has to be considered in a long term perspective, but I guess buying shares at a lower price is always a good thing.
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TNG = Tangerine? They are offering a 1% off the initial deposit for mutual funds? Is this a targeted promo?
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icedtea365 wrote:
Mar 8th, 2017 9:51 pm
TNG = Tangerine? They are offering a 1% off the initial deposit for mutual funds? Is this a targeted promo?
Yes and yes.
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ace604 wrote:
Mar 7th, 2017 9:17 am
If your "investment account" is Tangerine then 0.8% savings is a valid choice for a 60/40 conservative portfolio. If equities take a hit you can rebalance ... i.e. use the cash to buy on a dip.

I routinely sweep cash out of my brokerage account and into external HISA (EQ 2%, PCF or TNG promo rates that are higher like 3.25%).

Just because the cash is moved to a different account doesn't make it not part of my "investment portfolio" and make me 100% invested in equities. I actually have a savings account called "Investment" to keep it clear :)

It just means I'm searching for the highest yield possible on funds that I want to be "cash".

40% cash is rather high IMO, but to each their own. It's a valid starting point anyways if you don't want to lump sum invest all at once.

>3% seems very high for savings accounts. How often are people actually seeing those rates? I've been with Tangerine for years now and I'm not sure I've ever seen >3%. They certainly have their promo periods often enough where it's >2% though. Is it really worth the trouble to have multiple accounts (ie, EQ, PCF, TNG, others) to juggle the money between each respective one's promo periods? I'm having a hard time imagining that being worthwhile, but maybe I'm just too peasantly. haha
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zcypher wrote:
Mar 19th, 2017 11:46 pm
>3% seems very high for savings accounts. How often are people actually seeing those rates? I've been with Tangerine for years now and I'm not sure I've ever seen >3%. They certainly have their promo periods often enough where it's >2% though. Is it really worth the trouble to have multiple accounts (ie, EQ, PCF, TNG, others) to juggle the money between each respective one's promo periods? I'm having a hard time imagining that being worthwhile, but maybe I'm just too peasantly. haha
My wife currently has 3.25% from Jan 4-Apr 4.
Will move money back to EQ before Apr 3 and see what the next promo rates they offer both of us are (or stay at EQ for 2%).

Beats the heck out of near-0% or actual 0% at the broker.
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