When it comes to your portfolio’s investment returns, fees matter—a lot. Below, we looked at 10-year returns for $10,000 invested in four different types of TD Canadian equity funds with varying fee structures (known as management expense ratios or MERs), assuming a 6% gross annual rate of return. So which one came out ahead? The low-fee, indexed ETF (MER of 0.05%) performed best, netting you $17,824. The worst? The high-fee, actively managed A-Series mutual fund (MER of 2.18%) netted just $14,548.
Source: Jason Heath, Objective Financial Partners Inc.