Investing

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

  • Last Updated:
  • Dec 6th, 2020 8:09 pm
[OP]
Deal Addict
User avatar
Feb 14, 2012
1170 posts
310 upvotes
London

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?
8 replies
Newbie
Apr 13, 2019
59 posts
80 upvotes
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.
Deal Addict
Nov 24, 2013
1378 posts
731 upvotes
Toronto
They probably mean you need to have a USD account with them.
Deal Fanatic
Jul 1, 2007
8477 posts
1557 upvotes
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.
[OP]
Deal Addict
User avatar
Feb 14, 2012
1170 posts
310 upvotes
London
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.
Member
May 2, 2019
467 posts
527 upvotes
Vancouver
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.
[OP]
Deal Addict
User avatar
Feb 14, 2012
1170 posts
310 upvotes
London
yvrbanker wrote: Use TDB902 instead then. It's the same fund as TDB952. Except TDB902 is nominated in Canadian dollars.
Thank you!

Top