— Seeing monthly cash payouts feels great! But after reviewing all 74 Harvest ETFs, for retirees, near retirement, FIRE, and yield seekers investors, we found only one ($TBIL) that realistically protects a retiree's money over time. If you don't need monthly cash right now, high-yield option funds can shrink your investment and retirement savings. Here is how low-cost index funds grow your money and build real wealth instead! The High-Fee Yield Trap Covered call funds pay big monthly yields, but they come at a heavy cost: 1. High Fees Eat Your Returns: Their 0.65% to 1.45% MER drags down your wealth every single year. 2. Capped Upside & Full Downside: You miss big market rallies because your gains are capped, but you take the full hit when prices fall. 3. Shrinking Capital: High fees plus capped gains cause Net Asset Value (NAV) erosion, your monthly payment might stay steady, but the principal producing it decays. How Low-MER Funds Snowball Your Portfolio Low-cost index and dividend funds do the exact opposite. By paying just 0.03% to 0.22% in fees, you keep nearly all your returns: 1. The Compounding Snowball: Every dollar saved on fees stays in your account to grow, compounding into tens of thousands of extra dollars over 20+ years. 2. Pure Growth: Your money captures 100% of market upside without option caps. Core Low-Cost Favorites 1. Pure Dividend Growth (Cash Flow) - $XDIV (CAD): Ultra-low 0.11% MER | Quality-screened Canadian dividend leaders (banks, energy) focused on financial health & monthly income. - $VDY / $XEI (CAD): 0.22% MER | Canada's top dividend powerhouses (financials, energy, utilities). - $SCHD / $VYM (USD): 0.06% MER | Premier U.S. dividend growers with high quality and strong balance sheets. 2. All-in-One Global Compounders - $XEQT / $VEQT / $ZEQT (CAD): 0.20%–0.24% MER | 100% global stock exposure for long-term growth. - $VT / $VTI (USD): 0.03%–0.07% MER | Total US and world market coverage. - $VGRO / $XGRO (CAD): 0.20%–0.24% MER | 80% equity / 20% bond cushion for stability. 3. Total Return Drivers - $VOO / $VFV (USD / CAD): 0.03%–0.09% MER | S&P 500 giants driving core market growth. 4. Safe Cash Buffer - $TBIL / $SGOV (CAD / USD): ~0.07%–0.15% MER | Short-term T-Bills to fund 1–3 years of living expenses without touching your stocks during market dips. The Smart 3-Bucket Game Plan 1. 50% Growth & Total Return: $XEQT / $VOO / $VTI 2. 35% Pure Dividend Growth: $XDIV / $XEI / $VDY / $SCHD 3. 15% Cash Cushion: $TBIL / $SGOV / Cash Avoiding high-fee option funds helps your money grow faster and keeps your retirement and investment safe. What’s your strategy? Are you holding quality dividend growers ($XDIV / $SCHD / $VDY), harvesting index returns ($VOO / $XEQT), or combining both? — For educational use only, not financial advice.
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5 Comments
Mark Johnston@markjohnston · 4d
Zeqt.t solves everything
ETF Go
@etf.go · 4d
I’ll happily take any of the low cost options and a punch in the face before I ever buy a Harvest ETF. 🤷♂️
Gurinder Kamboj@gurinderkamboj · 4d
Great research
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