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Mawer Small Cap Fund with CCP (VCN/XAW) Portfolio ?

  • Last Updated:
  • Feb 14th, 2018 5:11 pm
[OP]
Member
Jun 7, 2010
300 posts
94 upvotes

Mawer Small Cap Fund with CCP (VCN/XAW) Portfolio ?

Hiya All:

Looking to spice up my registered accounts up a bit by adding Mawer Global Small Cap Fund aka MAW150 to my TFSA account.

I am 35 years old with an investment horizon of 25-30 years and currently hold approximately $300K in a CCP RRSP portofolio with 20% VCN and 80% XAW split. From my research so far, both of these ETF's have low exposure to small cap growth assets and hence I am thinking of exposing my maxed out TFSA, where I have been hoarding cash for past year, to MAW150.

What do the experts recommend? Is there another low cost ETF/solution that may provide me with similar assets as MAW150? The reason I have looked into Mawer is because of their reputation. However, without being too sentimental I do understand that MAW150's ~2% MER is pretty high and if I can score something of similar deal at a lower MER, that will be better.

Any suggestions? OR, perhaps I should not even add a actively managed portfolio/approach into a passively managed ccp portfolio?

Thanks.
Last edited by deadsea on Feb 14th, 2018 11:40 am, edited 1 time in total.
6 replies
Deal Addict
Mar 22, 2010
3028 posts
898 upvotes
In my opinion, they would overlap and creates redundancy in terms of coverage. For my case, I hold CCP in TFSA/personal RRSP but for my group RRSP (at work) I hold MAW104. (I am about same age as you)

Oh and I am not the expert just chiming in my opinion if that's okay.
Deal Addict
User avatar
Aug 4, 2014
3418 posts
3625 upvotes
Toronto, ON
deadsea wrote: with 80% VCN and 20% XAW split
Hope it's a typo and it's the other way around.. :)
Any suggestions? OR, perhaps I should not even add a actively managed portfolio/approach into a passively managed ccp portfolio?
I have HXT (TSX 60 ETF) in non-reg account and XMD (TSX Completion Index ETF, MER 0.59%) in TFSA. %-age of the latter can be increased for higher mid/small-cap exposure. As was recommended by Dan Bortolotti : http://www.moneysense.ca/columns/under- ... letion-xmd :)
[OP]
Member
Jun 7, 2010
300 posts
94 upvotes
It was indeed a typo! Thanks for catching it :)

I do realize that there will be some overlap, however, I can't figure out how else I can obtain world wide small cap exposure in my TFSA in one fund. I suppose looking at various small cap ETF's is an option.
Sr. Member
User avatar
Feb 5, 2017
842 posts
668 upvotes
If you want something with a lot of potential of growth (and volatility) in your TFSA go with emerging markets. I would just buy XEC in your TFSA and be done wth it.
Deal Addict
Oct 21, 2012
1412 posts
494 upvotes
Toronto
deadsea wrote: Hiya All:

What do the experts recommend? Is there another low cost ETF/solution that may provide me with similar assets as MAW150? The reason I have looked into Mawer is because of their reputation. However, without being too sentimental I do understand that MAW150's ~2% MER is pretty high and if I can score something of similar deal at a lower MER, that will be better.

Any suggestions? OR, perhaps I should not even add a actively managed portfolio/approach into a passively managed ccp portfolio?

Thanks.
I did some research on MAW150 for a similar situation but I was invested in XCS and VBR (nothing outside NA). I found there is legitimate reasons to hold an actively managed fund for the small cap sector. Everything else I hold are index funds.
[OP]
Member
Jun 7, 2010
300 posts
94 upvotes
Thanks @alexcalvado , I have as much of an exposure as I would like to EM via XAW (I would increase a bit via a global small scap but thats about what I can stomach at the moment).

Thanks @joey1234. I also have come to the same conclusion regarding MAW150 i.e. if the desired exposure is what I am looking for Mawer is it. May be someone can suggest an alternative, that n00bs like me arent aware of!

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