Individuals like ETFs as a result of they will provide numerous variety in a single funding, and their charges are low in comparison with what you’d pay to spend money on mutual funds. Many buyers don’t understand simply how a lot these prices can actually add up over time. A research discovered that 87% of Canadians both didn’t know or underestimated the affect that charges have on their portfolios.Â
In reality, over the course of 20 years, lowering charges by 1% may add greater than 30% to the worth of your investments. That’s why it’s necessary to test the charges before you purchase.
On this video, MoneySense’s Editor-in-Chief, Sandra Martin, walks by the charges that include each ETFs and mutual funds, and the place to search out that info so you’ll be able to comparison-shop.
Watch: MoneySense – BMO ETFs – Sandra Martin – ETFs and Mutual Funds charges