Tangerine's Core vs. Global ETF Portfolios

[@JustinBenderCPM]

100% of KZbin revenues received by the Canadian Portfolio Manager channel have been donated to SickKids Foundation. If this video has helped save you a few dollars on fees or taxes, please consider donating a portion of your savings to SickKids Foundation: www.sickkidsfoundation.com/

[@floydknip6943]

Keep up the good work !

[@NoviceExpert]

I use the Tangerine Global ETF portfolio so I can make regular contributions to registered accounts without trading fees. Once my portfolio is larger I will consider switching to VGRO or something similar with another brokerage.

[@John-nx9hx]

Really good explanation. Thanks

[@alexwong8851]

Thanks for the great overview! I agree, I would have liked to see Tangerine just lower the MER fees for their original portfolios. My sister and mom both currently have Tangerine's core investment funds. My mom is retired and my sister is decades away from retirement. Since they both prefer to stay with Tangerine, would you recommend they just stick with the core investment portfolios? Since we don't know which portfolio will perform better in the future.

[@JustinBenderCPM]

@alex wong - I would suggest having them watch the video and see if they have a preference for one over the other.

[@MarcelloNesca]

Thanks Justin, love your channel!

[@JustinBenderCPM]

@Marcello Nesca - Thanks for tuning in! :)

[@Mr12345bleepbloop]

Hi Justin, do you think you can do a video explaining robo advisors?

[@JustinBenderCPM]

@Mr12345bleepbloop - I'm sure I could, but it would likely need to be multiple videos (as there are soooo many roboadvisors in Canada now! ;)

[@johnmcquarrie5476]

Thank you for such a clear explanation. I'm going to subscribe to learn more.

[@JustinBenderCPM]

@John McQuarrie - thanks for watching (and subscribing! :)

[@julientousignant9652]

Good to know what are the options out there thanks Justin.

[@JustinBenderCPM]

@Julien Tousignant - You're very welcome - thanks for watching!

[@arkabhattacharjee304]

Thanks Justin. For index tracking mutual funds, I feel like the TD e-series is still an excellent option available, though I believe there is no fund for emerging market as far as I am aware. Regardless, I can enjoy the benefits of a mutual fund (invest by dollar amount, hands-off automatic contribution, etc.) while keeping the fees to about 0.35%, which is quite competitive. Rebalancing can be done once or twice a year, but apart from that, I can build a set-and-forget portfolio with the e-series at a cost much cheaper than even the roboadvisors. Do you have any thoughts?

[@JustinBenderCPM]

@Arka Bhattacharjee - The TD e-Series are also an excellent option for DIY index investors. I do wish TD would package them up into simple all-in-one portfolios that self-rebalanced though (for the same fee).

[@arkabhattacharjee304]

@@JustinBenderCPM All-in-one portfolios consisting of the e-series would be lovely. Those who bank with TD and wish to keep everything within the same umbrella (even if there are not many logical reasons to do so), having all-in-one portfolios with the same fees would be a game changer.

[@MusicMineSeven]

Following your blog, I invested into Tangerine's Growth portfolio. Mean while I learnt to use questrade and started buying VGRO. I was wondering if it's possible to move my funds from Tangerine's core portfolio into it's Global ETF bucket without incurring any costs, or if I should sell it all and use those funds to buy VGRO?

[@JustinBenderCPM]

@Sujeevan J - If you're transferring from a Tangerine Core Portfolio to a Tangerine Global ETF Portfolio in an RRSP or TFSA, there shouldn't be any costs to do so. If this transaction is in a taxable/non-registered account, you'll realize a capital gain or loss from the switch. I can't decide for you on which fund to purchase, but please check out my Vanguard Asset Allocation video to help you with your decision: kzbin.info/www/bejne/oJbLoKKueLyIZ80

[@MusicMineSeven]

@@JustinBenderCPM thank you for the info, I'll check it out!

[@WhiteWulfe]

Out of sheer curiosity, would there be any benefit to going into both of the Tangerine funds (core and ETF), and splitting your contributions between them?

[@JustinBenderCPM]

@WhiteWulfe - That would certainly hedge the risk of choosing the underperforming fund.

[@DC-nj8kv]

Good run down, Justin. I'm all in on xgro, but curious which ETFs track the benchmark most accurately (v,x,z,h, or these tangerine ETFs?).

[@JustinBenderCPM]

@D C - I'm not sure if I understand your question. Could you explain in a bit more detail what you're looking for - thanks!

[@DC-nj8kv]

@@JustinBenderCPM thanks very much for replying, Justin. For example, the s&p gains 10%. Is there a discrepancy in any of the one click options, underlying tracking ETFs following that benchmark (besides the management fee).

[@JustinBenderCPM]

​@@DC-nj8kv - The U.S. equity portion of the Tangerine Core Portfolios tracks the S&P 500 Index (CAD), so other than foreign withholding taxes and products costs, it should track relatively close to its index. The U.S. equity portion of the Tangerine Global ETF Portfolios track the Solactive GBS United States 500 CAD Index (CA NTR), which is a basket of ~500 large cap U.S. companies (which is very similar in composition to the S&P 500 Index), so I wouldn't expect too much tracking error over the long-term. For example, the S&P 500 Index returned 10.16% between 2007 and 2020, while the Solactive index returned 10.16% over the same period.

[@DC-nj8kv]

@@JustinBenderCPM surprising! I really appreciate the indepth videos (and replies here).

[@JustinBenderCPM]

@@DC-nj8kv - It's our pleasure :)

[@NeskMD]

Any insight to share on the after-tax return of those 2 solutions?

[@JustinBenderCPM]

@Jean-Daniel Talbot - The after-tax returns would be expected to be similar.

[@HamiltonRb]

I'll stick with VGRO at 1/3 the cost

[@JustinBenderCPM]

@HamiltonRb - I tend to agree - if you can learn how to place an ETF trade (and consistently invest your cash), asset allocation ETFs are a much better bargain.

[@RawLu.]

I'll Support My Country, AT ANY COST. Tangerine ;-)

[@niranmojo]

I didn’t like the 1.07% MER

[@erranzimmermann1207]

Honestly, anything more than 0.40% MER for a passively-managed index fund/ETF is borderline criminal (yes, that's hyperbole), and even that "benchmark" is high, but that's the Canadian investment market for you. Something like VGRO/XGRO are much better strategies, but understandably, few Canadian investors will take the initiative to open up an online brokerage account and do it themselves. That "laziness" comes at a cost. It's really shameful that more Canadians are not taught about finances so that they don't get screwed over by financial institutions like they do.

[@ExtraServingsBTS]

HGRO baby!

[@ExtraServingsBTS]

Tangerine constantly denies my wife a credit card, yet BMO keeps increasing her limit, now pushing 30k. Tangerine, I have no faith in you.

[@HamiltonRb]

Apparently they have no faith in your wife's credit

[@ExtraServingsBTS]

@@HamiltonRb seems to be. Yet another FI keeps on loading her up.

[@HamiltonRb]

@@ExtraServingsBTS More credit and potential debt is not always a good thing my friend.

[@ExtraServingsBTS]

@@HamiltonRb you're so smart!

[@HamiltonRb]

@@ExtraServingsBTS Lol, no, I learned the hard way, and never again