F-series investors: Save more with PTFs

Platform-traded funds are 23% cheaper than comparable F-series funds

  0 Premium content image

by

From the December 2015 issue of the magazine.

  0 Premium content image

F-series mutual funds—favoured by investors with fee-based accounts who don’t want to pay trailing commissions—have got some cheaper competition: platform-traded funds. First introduced by Invesco earlier this fall, PTFs are similar to exchange-traded funds in that they’re bought and sold like stocks (albeit on a private exchange accessible only by fee-based IIROC-certified advisors) and require no minimum investment. But unlike ETFs, orders are filled at the end of the day using the fund’s net asset value, which can avoid wide bid-ask spreads for illiquid funds. Best of all, PTFs’ management fees range between 0.6% and 1.1%, which is about 23% cheaper than comparable F-series funds.

Leave a comment

Your email address will not be published. Required fields are marked *