Why not corporate class funds?

For non-registered investing you should use corporate-class funds, especially if you're in a higher tax bracket.

Maybe look into swap-based ETFs as well

But corporate class funds are not talked about by financial planners. Is that because they are newer, or the financial planners don't get as much when selling them?

I looked at them. MERs are crazy. I prefer Horizon ETFs. Too bad they don't have an international equity ETF.

Jermyzy wrote: ↑Maybe look into swap-based ETFs as well

Can you please elaborate.

******* wrote: ↑Sure they are. Unfortunately, many institutions do not offer them - so this may be a reason. The other reason being - realistically, the average Canadian cannot even maximize their TFSA's, let alone their RRSP room. Non-registered investments should follow these two (in most cases). Corporate class are widely used with affluent investors who have large excess cash outside of their RRSP's and TFSA's. They are often used to "invest" corporate retained earnings for small business owners given the adverse taxation of "passive" income.

True, not all institutions offer them. But even for people who haven't maxed out their RRSP or TFSA, CC funds can still be useful for tax purpose. If there is one coming year where you might have huge income to be at the top tax bracket, one can leave room in RRSP/TFSA to max them out then.

It just seems, if the MER is similar, shouldn't we all be buying CC funds instead of their similar siblings.

Arrgh wrote: ↑Can you please elaborate.

http://canadiancouchpotato.com/2011/06/ ... ased-etfs/

http://canadiancouchpotato.com/2011/06/ ... the-risks/

Interesting thread. What are some examples of Corporate Class funds that would be good for someone who has excess cash from a business and has maximized RRSP, TFSA, RESP, etc.

cessnabmw wrote: ↑Interesting thread. What are some examples of Corporate Class funds that would be good for someone who has excess cash from a business and has maximized RRSP, TFSA, RESP, etc.

I'll give you a more vague answer than you probably want, but what I'd recommend is look at the corporate class fund selection at a few of the big fund companies and ensure you choose to buy the corporate class fund of the fund company with the all-around best fund line up. At some point you'll want to take advantage of tax deferred switching and will want to ensure there's plenty of choices. Do some apples to apples comparisons of each company's main Canadian equity funds, each of their U.S. equity, etc... to find the company with the lower average MERs.