The Bank of Canada notes in its interest rate decision that the credit crisis will directly affect our finances by way of higher interest on loans and mortgages. Also, the Financial Post reported that the bank repeated the warning in its monetary policy report that borrowing costs have increased by about 0.20% to 0.35%.
Jon Chevreau wrote a column and blog post on new “global dividend” funds and tries to figure out the math on these products: yield (3.6%) minus MER (2.4%) leaving 1.2% in the investors pocket. Vanguard Europe Pacific ETF (VEA) will probably sport a yield of approximately 2%. Deducting the MER of 0.15% will still leave investors with more dividends in their pocket.