tag:blogger.com,1999:blog-5465015914589377788.post5871747484757113325..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Vanguard’s Move to Canada Encouraging but Initially DisappointingMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-62506580987089839712020-11-02T10:11:17.230-05:002020-11-02T10:11:17.230-05:00The comment above is a reply to Canadian Capitalis...The comment above is a reply to Canadian Capitalist's comment:<br /><br />Even if Vanguard does introduce Canadian-listed ETFs, there is one reason to continue to hold US ETFs directly in their RRSPs because we can avoid the withholding tax on US dividends. At a dividend yield of 2%, the US ETF will be cheaper by 0.3% p.a. in a RRSP account.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-30890877728224054712011-06-07T15:37:20.761-04:002011-06-07T15:37:20.761-04:00@Anonymous: I'd be OK with TD-like mutual fun...@Anonymous: I'd be OK with TD-like mutual fund offerings if they cover indexes I like and are cheap enough.<br /><br />@Mike: I hope you're right that the Vanguard Canada products will be available to DIY investors. I guess we'll have to wait and see.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-80177141380226401102011-06-07T13:49:07.867-04:002011-06-07T13:49:07.867-04:00Michael, the new head of Vanguard Canada has state...Michael, the new head of Vanguard Canada has stated that Vanguard doesn't pay commissions (which is true in the US). It sounds to me like any products they offer will be accessible to everyone, but they want to work with advisors too.<br /><br />Without commissions, fee-only & wealth management advisors will be the only advisors using their products.<br /><br />In the US, you can set up a self-directed account directly with Vanguard. My assumption is that model will be used here too. Plus they will work with advisors (non-commissioned) as well.<br /><br />Of course, I could be wrong. ;)Mike Holmanhttp://www.moneysmartsblog.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-13635907432361016322011-06-07T12:55:26.161-04:002011-06-07T12:55:26.161-04:00I am with you on this one Michael.
Unless they ha...I am with you on this one Michael.<br /><br />Unless they have some innovative products up their sleeve, we'll end up with versions of the TD index funds - only more widely accessible through advisors initially and slightly cheaper through brokers later.<br /><br />TD obviously makes a lot of money off the funds especially by creating scarcity and having to open an account there.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-14616516393523648222011-06-07T11:55:58.486-04:002011-06-07T11:55:58.486-04:00@CC: Good point. This seems like a tricky proble...@CC: Good point. This seems like a tricky problem for Vanguard to solve. I'm guessing that they'd be motivated to find a solution if possible, but they may not be able to do so. Perhaps the only answer would be an index mutual fund (i.e., non-ETF) where Vanguard registers the accounts as RRSP accounts to avoid the withholding.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-49402093631316455232011-06-07T08:53:06.262-04:002011-06-07T08:53:06.262-04:00@Mike: You may be right about where I'd have ...@Mike: You may be right about where I'd have my money if I were an American. I have nothing against mutual funds in principle. I'm just looking for the lowest cost way to invest in the index.<br /><br />The announcement did serve one purpose for me which was to signal that their offerings won't be available to DIY investors. This isn't good news, but I'd rather know the truth.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-33215488612992087582011-06-07T08:46:16.065-04:002011-06-07T08:46:16.065-04:00Even just buying ETFs is a challenge for most peop...Even just buying ETFs is a challenge for most people. Market order, limit order etc.<br /><br />I'd bet that if you were American, you'd be invested in the Vanguard Admiral series index funds. I think the costs are very equivalent to their ETFs and are far more convenient.<br /><br />The announcement was silly - I had a post mostly pre-written on the assumption that they were going to actually announce something. I shouldn't have bothered.Mike Holmanhttp://www.moneysmartsblog.comnoreply@blogger.com