Bank says I need a US account to invest in US index fund

Dec 4th, 2020 3:53 pm

#1

Kwando [OP]: Deal Addict; Feb 14, 2012; 1170 posts; 310 upvotes; London

Dec 4th, 2020 3:53 pm

Bank says I need a US account to invest in US index fund

Noob here. I'm looking to change my wife's RRSP mutual fund from a low-risk one to a medium risk US Index fund to increase her returns. I identified the bank's fund code for the US index fund but they are saying that we need to open a US mutual fund account. Is this true?

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Dec 4th, 2020 5:03 pm

#2

fireseeker: Newbie; Apr 13, 2019; 59 posts; 80 upvotes

Dec 4th, 2020 5:03 pm

Kwando wrote: ↑ Noob here. I'm looking to change my wife's RRSP mutual fund from a low-risk one to a medium risk US Index fund to increase her returns. I identified the bank's fund code for the US index fund but they are saying that we need to open a US mutual fund account. Is this true?

Probably.
But it will help if you clarify the following:
--Are you talking about a branch account or a self-directed investing account?
--Which institution?

Also curious about the "medium risk US index fund." Index funds should generally have the same risk, assuming both follow a large-cap mainstream index.

Dec 4th, 2020 9:04 pm

#3

lucky13bbq: Jr. Member; Jan 1, 2007; 107 posts; 26 upvotes

Dec 4th, 2020 9:04 pm

TDB902?

Dec 4th, 2020 9:08 pm

#4

lpin14: Deal Addict; Nov 24, 2013; 1378 posts; 731 upvotes; Toronto

Dec 4th, 2020 9:08 pm

They probably mean you need to have a USD account with them.

Dec 4th, 2020 11:32 pm

#5

Thalo: Deal Fanatic; Jul 1, 2007; 8477 posts; 1557 upvotes

Dec 4th, 2020 11:32 pm

You are probably trying to buy a $USD denominated US index fund. Browse the fund line up for the $CAD denominated version.

Money Smarts Blog wrote: ↑I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.

+3

Dec 5th, 2020 4:12 pm

#6

Kwando [OP]: Deal Addict; Feb 14, 2012; 1170 posts; 310 upvotes; London

Dec 5th, 2020 4:12 pm

fireseeker wrote: ↑ Probably.
But it will help if you clarify the following:
--Are you talking about a branch account or a self-directed investing account?
--Which institution?

Also curious about the "medium risk US index fund." Index funds should generally have the same risk, assuming both follow a large-cap mainstream index.

Thanks for your response.

It's a managed RRSP account with TD. I was originally looking at TDB952.

Dec 5th, 2020 4:14 pm

#7

Kwando [OP]: Deal Addict; Feb 14, 2012; 1170 posts; 310 upvotes; London

Dec 5th, 2020 4:14 pm

lucky13bbq wrote: ↑TDB902?

I am looking at TDB952

Dec 6th, 2020 4:22 am

#8

yvrbanker: Member; May 2, 2019; 467 posts; 527 upvotes; Vancouver

Dec 6th, 2020 4:22 am

Kwando wrote: ↑ I am looking at TDB952

Use TDB902 instead then. It's the same fund as TDB952. Except TDB902 is nominated in Canadian dollars.

+2

Dec 6th, 2020 8:09 pm

#9

Kwando [OP]: Deal Addict; Feb 14, 2012; 1170 posts; 310 upvotes; London

Dec 6th, 2020 8:09 pm

yvrbanker wrote: ↑ Use TDB902 instead then. It's the same fund as TDB952. Except TDB902 is nominated in Canadian dollars.

Thank you!

+1