Investing

What the MER of XBAL?

  • Last Updated:
  • Apr 7th, 2019 12:22 pm
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12 replies
Deal Addict
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Oct 14, 2015
1312 posts
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Couch Potato has it right, about 0.20% or 0.21%.

From the BlackRock PDF:
“MER” means management expense ratio and is based on total fees and expenses (excluding commissions and other
portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average Net Asset
Value during the period. See “Fees and Expenses - Fees and Expenses Payable by the iShares Funds”. In respect of XBAL
and XGRO, effective December 11, 2018, each such iShares Fund’s management fee was reduced and its fee structure was
changed.
Member
Feb 9, 2018
432 posts
316 upvotes
MER is always reported for previous 12 months and XGRO wasnt even around prior to Dec 2018 so they are reporting the MER of the funds that XGRO evolved from. Once a year is up for XGRO, its MER will be updated to 0.20-0.21.
[OP]
Sr. Member
Mar 7, 2008
520 posts
136 upvotes
Thanks for the reply. I understand now .

So If I plan to buy 20k xbal this year for my rsp account, should I buy it once now or buy 2K every month? I use Questrade so no fee to buy xbal
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Deal Addict
Nov 9, 2013
4025 posts
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Edmonton, AB
mouseswimming wrote: Thanks for the reply. I understand now .

So If I plan to buy 20k xbal this year for my rsp account, should I buy it once now or buy 2K every month? I use Questrade so no fee to buy xbal
Time in > timing
Keep calm and go long
[OP]
Sr. Member
Mar 7, 2008
520 posts
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treva84 wrote: Time in > timing
Why? Is there any article support this conclusion? I want to read
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Sr. Member
Mar 16, 2018
793 posts
873 upvotes
Hamilton
https://personal.vanguard.com/pdf/s315.pdf

Market timing is already absurd for equities, but it makes even more sense for a bond heavy portfolio like XBAL. Invest your money now in interest earning investments or leave it sitting around earning nothing because you're worried they might decrease in value.
Deal Addict
Nov 9, 2013
4025 posts
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Edmonton, AB
mouseswimming wrote:
Why? Is there any article support this conclusion? I want to read
There is some evidence to support this - I would encourage you to Google it.
Keep calm and go long
Deal Addict
Jun 15, 2012
2837 posts
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Saskatoon
mouseswimming wrote: Why? Is there any article support this conclusion? I want to read
It’s a myth spread by stock market pumpers, the more investors buy the higher stocks go.
All those writer are heavy invested in stocks, they will justify for you buy immediately because it will generate income for them. Conflict of interest.
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul
[OP]
Sr. Member
Mar 7, 2008
520 posts
136 upvotes
ownthesky wrote: https://personal.vanguard.com/pdf/s315.pdf

Market timing is already absurd for equities, but it makes even more sense for a bond heavy portfolio like XBAL. Invest your money now in interest earning investments or leave it sitting around earning nothing because you're worried they might decrease in value.
I disagree.
DCA does NOT mean the rest of money (NOT in market parts) do NOT have interest. Let's say in 3% high interest saving account. Still get the same conclusion?
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Deal Addict
Nov 9, 2013
4025 posts
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Edmonton, AB
If DCA makes you feel more comfortable that is fine too, ultimately all that matters is you 1) invest in the markets for the long term and 2) stick to your plan.

Part of the reason lump sum usually wins over multiple time simulations is that much of the return (even over years) boils down to specific days in the market. The returns are very lumpy and not smooth - the only way to capture these returns is to have money invested.
Keep calm and go long
Sr. Member
User avatar
Feb 5, 2017
837 posts
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ukrainiandude wrote: It’s a myth spread by stock market pumpers, the more investors buy the higher stocks go.
All those writer are heavy invested in stocks, they will justify for you buy immediately because it will generate income for them. Conflict of interest.
yeap and a lot of folks here will get caught selling in a downturn because they bought too high
Deal Fanatic
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Sep 8, 2007
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Way Out of GTA
ukrainiandude wrote: It’s a myth spread by stock market pumpers, the more investors buy the higher stocks go.
All those writer are heavy invested in stocks, they will justify for you buy immediately because it will generate income for them. Conflict of interest.
When did you buy stocks?

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