According to renowned investment consultant, Charles Ellis, investors innocently describe mutual fund fees with one four-letter word and one number – both word and number are wrong. The word is “only,” and the number is often “1%.” So, when referring to mutual fund fees, we end up with statements like “It’s only 1%.” That may be true in the United […]
Continued from 10 Common Misconceptions About Robo Advisors (Part 1) Misconception #6 – Humans are inherently better investors (and advisors) than robo advisors Intuitively, it seems like humans would have the advantage over technology, that an algorithm could never perform as well as a human advisor. There’s a hesitation in handing over the reins to an unfeeling algorithm, even when […]
At ModernAdvisor we take keeping fees low seriously. The same cannot be said of the mutual fund industry. The majority of mutual funds in Canada sold by advisors have fees of over 2% per year. The proponents of actively managed mutual funds often argue that the reason the fees are what they are is you are paying for that active […]
The ETF (Exchange-traded fund) market has skyrocketed from one fund in 1993, to over $70 Billion and more than three hundred funds in 2014. In fact, many experienced investors now refer to ETFs as “the cheaper and better alternative to mutual funds”. Here is a look at how ETFs differ and how you can benefit from their advantages: What are ETFs? How do they […]
