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Vangard VBAL/VRGO Question

  • Last Updated:
  • Jul 19th, 2018 1:46 pm
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto

Vangard VBAL/VRGO Question

EDIT2: I have changed the title of the thread since I didn't want to create a new thread but the main question has changed.

Currently, VBAL, VGRO are roughly similar to CCP counter part in terms of percentage of CAN/US/INT equity.
Also, I would assume they will stick with the overall Bond/Equity ratio (40/60 for VBAL, 20/80 for VGRO).

However, Vangard could decide to change the CAN/US/INT equity ratio as they want.
Usually how drastic does the ratio change for this type of ETFs? I understand what happens generally doesn't mean it will apply to this particular ETFs but just as a benchmark.

I like the idea of VBAl/VGRO since it is close enough to CCP modal that I was going to use anyway, but unsure if it will be similar to CCP in the long term.


Old questions

I need some advice on my TFSA MF plan.
I posted this on TD-e-series thread as well but it's a big thread (on page 20 of 254) and not very active lately.

- First time TFSA
- I already have checking account with TD
- I have looked at Tangerine and TD-e series and leaning towards TD-e series for low MER
- Thinking about starting with $15k+ and will contribute monthly (haven't decided if I want to do this automatically or manually)
- Will start with 4 standard categories of the Couch Potato modal (haven't decided on the exact % on each categories yet)
- Leaning towards opening TD DI over TDCT MF account, since the process of creating these account takes time and in case I want to invest in something other than MF later on. It looks like TD DI can do everything TDCT MF account can do and more. Just have fee that could be waived by having $15K+ in investment.

Actual steps
1. Create request to open TD DI account online through EasyWeb since I already have access.
2. EDIT: Not needed, just to transfer from checking Add TD DI account on my bill payment from TD checking, transfer initial $15K+.
3. Buy e-series funds from TD DI once the cash arrives.
4. Repeat step 2-3 manually (could change step 2 to auto using SIP)
5. Re balance my investment periodically with new buys unless the ratio difference is too large to cover with new buys. Than sell and buy.

Please let me know if you think my plan sounds reasonable and if I am missing any steps.
Any suggestion/feedback is welcomed.

Thanks in advance.
Last edited by last_sd on Jul 19th, 2018 9:59 am, edited 5 times in total.
10 replies
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
I’m doing the eSeries thing in a TDDI TFSA so I cant critique your approach ;)

Just so you know for Step 2, if you’re banking with TD, you can just Transfer from chequing to the TDDI account; you don’t have to add it as a bill payee. Transfer is nearly-instant too (minute or so lag probably due to EasyWeb and WebBroker being two different platforms).

If for some reason you ever needed to dip less than $15,000 in the account, your TDDI fee can also be waived with a $100/mo preauthorized contribution (have to set it up with TDDI).
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto
Additional question to those who uses TD DI.
I mostly plan to stick with TD-e-series MF, I may buy some ETFs on my TFSA as well.

Based on my readings these are key difference.
1. $9.99 fee per trade (buy or sell).
2. Trade is near instant and must be done while stock exchange is open.
3. Have to buy a whole share, no partial shares.

Am I missing any key information such as additional fees, etc, on buying/selling ETF such as ZAG, VCN, XAW?
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
last_sd wrote: Additional question to those who uses TD DI.
I mostly plan to stick with TD-e-series MF, I may buy some ETFs on my TFSA as well.

Based on my readings these are key difference.
1. $9.99 fee per trade (buy or sell).
2. Trade is near instant and must be done while stock exchange is open.
3. Have to buy a whole share, no partial shares.

Am I missing any key information such as additional fees, etc, on buying/selling ETF such as ZAG, VCN, XAW?
You've got it.

Buying an ETF is like buying a stock share. You're buying in whole shares(units), you're paying the $9.99 commission on buy or sell, and you're doing it during trading hours. On TDDI, you even look the symbols up in the same window.
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto
So I got access to WebBroker now, but when I try to transfer funds from my TD checking to TD DI TFSA, I get this error.

The ‘From’ account you selected does not have any eligible accounts that you can transfer funds to.

I will probably wait few more days before contacting TD DI did anyone have same experience?
Member
May 8, 2012
397 posts
277 upvotes
Edmonton, AB
It took 2-3 additional days for my accounts to be setup after i fit the email about account setup
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto
royaljatt wrote: It took 2-3 additional days for my accounts to be setup after i fit the email about account setup
Yeah my DI TFSA accounts are showing up on my EasyWeb. Took 3 business days after I got the account setup email.
I wonder if they are done setting up the account. Maybe I will wait couple of days to make sure before start moving funds and investing.
Member
May 8, 2012
397 posts
277 upvotes
Edmonton, AB
last_sd wrote: Yeah my DI TFSA accounts are showing up on my EasyWeb. Took 3 business days after I got the account setup email.
I wonder if they are done setting up the account. Maybe I will wait couple of days to make sure before start moving funds and investing.
If you have your easyweb setup with username then I would suggest calling TDDI and have then link your account with TD Debt Card so that you can login using the same login info
The TD e-series can be bought in partial units (eg. price is $17 and you want to invest $900, you would get 52.941 units). TD e-series when you buy the buy order will only initiate on the closing price if your buy order was placed before market closed 4pm, otherwise it would be based on the next day closing price. same goes for when your want to redeem
ETF has be in whole units (eg. price is $17 and you want to invest $900, you would get 52 units with $6 leftover $10 for placing the trade)


on the side note
TD-e series have an early redemption clause, if you redeem your investment before 30 days you have to pay 1% of the balance or $45 whichever is higher (I Think)
What I was planning to do was set up preauthorized contribution of $100 monthly and setup auto buy e-series until I accumulate $300 to buy ETF every qrt.

Now I switched to preauthorized contribution of $100 monthly and buying the High-Interest Saving (TDB8150) and then buy ETF every qrt
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto
royaljatt wrote: If you have your easyweb setup with username then I would suggest calling TDDI and have then link your account with TD Debt Card so that you can login using the same login info
The TD e-series can be bought in partial units (eg. price is $17 and you want to invest $900, you would get 52.941 units). TD e-series when you buy the buy order will only initiate on the closing price if your buy order was placed before market closed 4pm, otherwise it would be based on the next day closing price. same goes for when your want to redeem
ETF has be in whole units (eg. price is $17 and you want to invest $900, you would get 52 units with $6 leftover $10 for placing the trade)


on the side note
TD-e series have an early redemption clause, if you redeem your investment before 30 days you have to pay 1% of the balance or $45 whichever is higher (I Think)
What I was planning to do was set up preauthorized contribution of $100 monthly and setup auto buy e-series until I accumulate $300 to buy ETF every qrt.

Now I switched to preauthorized contribution of $100 monthly and buying the High-Interest Saving (TDB8150) and then buy ETF every qrt
I am already using same username to access both Easyweb and TDDI (I actually could from Sunday). It's just until today morning, Easyweb didn't list my TFSA TDDI accounts and I couldn't transfer funds from easyweb or TDDI.
Since they allowed me to access TDDI even though it wasn't done setting up(linking with Easyweb), I am now wondering if there are more things for them to setup or I could just start investing.
I think I will try with small amount of transfer and buy some e-series to check if everything is working as intended.

I think the early redemption fee is now 2%.
Deal Addict
Mar 4, 2009
1841 posts
654 upvotes
Toronto
Updated the main question and thread title
Deal Addict
Feb 26, 2012
2319 posts
620 upvotes
MISSISSAUGA
I would use Questrade if possible since ETF trades are free.

Any chance in ratio will usually be small and not a dramatic shift. It is still worth the risk if you like the convince of not have to re-balance your portfolio every time.

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