Friday, October 22, 2010

Short Takes: ETF Tracking Error, Collateral Mortgage Pain, and more

Remember to enter the draw for a copy of Mike Holman’s RESP Book by sending an email to the contact email address in the upper right corner of my blog with the subject “Book” before noon on Saturday, October 23. My review and further details about the contest are here.

Rob Carrick warns that ETF investors should avoid ETFs with high tracking error.

Gail Vaz-Oxlade explains in clear terms the problems with TD’s plan to switch to collateral mortgages. Gail is quite passionate about this issue. The most troublesome problem she mentions is the ability of the bank to change your interest rate after closing.

Warren Buffett explains a $200 billion mistake he made. (Hat tip to the Stingy Investor for highlighting this one.)

Canadian Capitalist wades into the issue of whether to buy U.S. or Canadian-listed ETFs. He gives pros and cons of both choices, but comes out firmly on the side of U.S.-listed ETFs.

Larry MacDonald (this web page has disappeared) profiles a young woman who gave up her place in corporate life to travel the world. She now earns enough money while on-the-go to sustain her nomadic lifestyle.

Million Dollar Journey explains real-return bonds.

Tim Cestnick explains a clever way to transfer capital losses from one spouse to another.

Preet Banerjee adds up the costs of buying a car in the U.S. to take advantage of the strong Canadian dollar.

Money Smarts defends mutual fund DSCs (Deferred Service Charges). I’m not convinced, but I do see his point that they could be worse.

Big Cajun Man sums up his experiences with RESPs now that he has actually made a withdrawal.

My Own Advisor has learnt the lesson of cheering the prices of your stocks down when you expect to be buying more in the future.

Financial Highway has 10 ways to lower your insurance costs, but they’re all listed as #1. I guess anything that saves money has high priority.


  1. Thanks for the mention Michael. Have a great weekend!

  2. Thanks for the mention Michael. Enjoy your weekend!

  3. Thanks for the mention. Enjoy your weekend Michael!