How fees impact your investment returns

How fees impact your investment returns

We compared four different types of Canadian equity funds


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.

investment fees

Source: Jason Heath, Objective Financial Partners Inc.