Part 13 of my series on rethinking the Canadian ETF experience. $XEQT charges 0.20%, while $ZEQT charges 0.18%. Using my current assumptions for reaching a $1 million portfolio in 2037, that 0.02% difference works out to about $1,609 over the next 11 years. Considering the size of the portfolio and the time horizon involved, that’s a much smaller difference than many people would probably expect. That’s why I think choosing between XEQT and ZEQT comes down to much more than fees alone. The underlying holdings, sector exposure, country allocation, diversification strategy, and even personal preference are likely to have a much greater impact than a 0.02% difference in MER. Curious how much of a difference 0.02% would make for your own portfolio?
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3 Comments
Rez @rezola · 20d
How much is your expected annualized rate of return to reach your goal?
Rez @rezola · 19d
I look at it as a range rather than an exact number, I'd say around 9–11, and EQTs fit that range very well. Viewing it that way, the difference in MER becomes much less significant.
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