Quote:
Originally Posted by macker
You say 50 basis points difference in MER's between the two but we both know that you are about 2% off on that estimate.
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Actually, I wasn't referring a 50-bp difference in the MERs of mutual funds versus ETFs. I was referring to coming within 50 bps of the performance of the ETF.
I feel that if you compare the performance of the elite fund managers with their index subtracting fees, you'll roughly match the index, or at least come within 25-50 bps. That assumes you follow your advisor's advice, when what he tells you to do is the smart thing but may be contrary to what your heart tells you to do. Throw in all that a good advisor can do for you and you'll be better off than buying the index.