The following question is from Andre:
In your blog, you mentioned buying VEA ETF. I thought Canadians could not buy Vanguard funds. How do you buy Vanguard ETFs?
It is true that Canadians cannot normally buy the low-cost index mutual funds available directly through Vanguard. Fortunately for us, we can easily buy Vanguard ETFs such as their Total US Stock Market Index Fund (VTI), Europe Pacific Index Fund (VEA) and Emerging Markets Stock Index Fund (VWO), which are even cheaper than the corresponding index mutual funds.
ETFs or Exchange Traded Funds are securities that track an index and are traded on the stock exchange just like individual stocks. If you have a brokerage account, buying an ETF is as simple as entering a buy order with the ETF’s ticker symbol on the appropriate exchange and placing an order.
As you have pay a commission every time you buy or sell an ETF and it is best to keep commissions to 1% of the trade, ETFs are ideal for larger portfolios. For small portfolios and investing small amounts of money regularly, the TD e-Series index mutual funds will be a better choice.
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