Introduction
It is my personal finance research. What I like to do is to invest $50,000 dollars on questrade.com, TFSA account. What I like to do is to set up my own balance portfolio $44,000 dollars and $6000 dollars on VBAL ETF.
Case study
I compare the cost of ETF, VBAL is around 0.22% whereas VFV has 0.08% MER, VDU has 0.20%, VAB has 0.08%, so my portfolio will have 0.10% MER. So I calculate the cost of every year, the difference is 0.12%.
If I purchase $10,000 dollars VBAL instead of building my own portfolio, then the cost of MER extra is $120.00 dollars. For my case, I have $50,000 dollars, I have to pay $600 dollars extra for MER.
I like to build a portfolio by myself, and also compare the performance with VBAL with a small amount $6,000 dollars.
Follow up
Dec. 11, 2019 9:52 PM
$10,000 dollars for 0.12% MER will be $12 dollars, not $120 dollars. So $50,000 dollars with 0.12% MER will be $60.00 dollars, not $600 dollars.
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