Comments on: The Dirty Secret Behind Closet Index Funds http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/ A Vancouverite's journey to financial freedom. Fri, 05 Sep 2008 21:45:13 +0000 http://wordpress.org/?v=2.1.2 By: FourPillars http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-194 FourPillars Sun, 27 May 2007 15:11:15 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-194 Great post! Another red flag might be fund size - the larger the fund, the more likely it is to resemble the index. It amazes me that most investors are afraid to DIY because they think they will make mistakes. Meanwhile their advisor will probably put them in mainstream funds from the larger mutual fund companies and in the case of Cdn equity and probably others as well, those funds might all be pretty similar. Great post!

Another red flag might be fund size - the larger the fund, the more likely it is to resemble the index.

It amazes me that most investors are afraid to DIY because they think they will make mistakes. Meanwhile their advisor will probably put them in mainstream funds from the larger mutual fund companies and in the case of Cdn equity and probably others as well, those funds might all be pretty similar.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-195 Financial Jungle Guy Sun, 27 May 2007 16:42:15 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-195 Thanks for the comment, FourPillars. Fund size is another good gauge. If a fund is over, say, $2 billion in size, chances are the manager is hard pressed to include high a proportion of small- and mid-cap stocks. Thanks for the comment, FourPillars. Fund size is another good gauge. If a fund is over, say, $2 billion in size, chances are the manager is hard pressed to include high a proportion of small- and mid-cap stocks.

]]> By: Average Joe http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-198 Average Joe Mon, 28 May 2007 16:25:00 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-198 Excellent post. When I see all those studies that show how Canadians pay the highest MERs in the world, it shows that the general population just doesn't seem that concerned. I just don't think they realize the impact of paying those 2.5% MERs over the long run. Average Joe Excellent post.

When I see all those studies that show how Canadians pay the highest MERs in the world, it shows that the general population just doesn’t seem that concerned. I just don’t think they realize the impact of paying those 2.5% MERs over the long run.

Average Joe

]]> By: Financial Jungle Guy http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-199 Financial Jungle Guy Mon, 28 May 2007 17:35:14 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-199 Thanks, Joe. In good times, most people forgets about the 2.5% MER, but wait till a bear market when people lose 10% + 2.5% in MER. Thanks, Joe. In good times, most people forgets about the 2.5% MER, but wait till a bear market when people lose 10% + 2.5% in MER.

]]> By: ThickenMyWallet http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-202 ThickenMyWallet Mon, 28 May 2007 20:37:14 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-202 I can't decide what's worse, a closet index fund or a fund of funds mutual fund. I can’t decide what’s worse, a closet index fund or a fund of funds mutual fund.

]]> By: Money Smart Life » Musical Money - Carnival of Personal Finance #102 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-203 Money Smart Life » Musical Money - Carnival of Personal Finance #102 Tue, 29 May 2007 13:56:25 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-203 [...] Cooper has “Skeletons in his closet”. The Financial Jungle warns us about The Dirty Secret Behind Closet Index Funds.  Don’t pay fees for a managed fund that mirrors a low-cost index [...] […] Cooper has “Skeletons in his closet”. The Financial Jungle warns us about The Dirty Secret Behind Closet Index Funds.  Don’t pay fees for a managed fund that mirrors a low-cost index […]

]]> By: Carnival of Personal Finance » Carnival of Personal Finance #102 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-204 Carnival of Personal Finance » Carnival of Personal Finance #102 Tue, 29 May 2007 14:13:08 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-204 [...] The Dirty Secret Behind Closet Index Funds [...] […] The Dirty Secret Behind Closet Index Funds […]

]]> By: Financial Jungle - » Blog Update: Carnival, Canadian Capitalist and Writing Tip http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-223 Financial Jungle - » Blog Update: Carnival, Canadian Capitalist and Writing Tip Thu, 31 May 2007 15:49:29 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-223 [...] was thrilled to learn that Money Smart Life selected my article, The Dirty Secret Behind Closet Index Funds, as an editor’s pick for the Carnival of Personal Finance #102. You might want to check out [...] […] was thrilled to learn that Money Smart Life selected my article, The Dirty Secret Behind Closet Index Funds, as an editor’s pick for the Carnival of Personal Finance #102. You might want to check out […]

]]> By: shaz http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-229 shaz Fri, 01 Jun 2007 05:45:44 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-229 I can’t decide what’s worse, a closet index fund or a fund of funds mutual fund I can’t decide what’s worse, a closet index fund or a fund of funds mutual fund

]]> By: Carnival of Personal Finance #102 : The Dough Roller http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-235 Carnival of Personal Finance #102 : The Dough Roller Sat, 02 Jun 2007 01:41:27 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-235 [...] The Dirty Secret of Closet Index Funds, submitted by Financial Jungle [...] […] The Dirty Secret of Closet Index Funds, submitted by Financial Jungle […]

]]> By: Jeff http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-236 Jeff Sat, 02 Jun 2007 03:09:19 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-236 Just thought I would let you know of a free site that offers R-Squared information. http://www.fundlibrary.com Just type in the name or fund symbol. It is under the risk tab. Just thought I would let you know of a free site that offers R-Squared information. http://www.fundlibrary.com Just type in the name or fund symbol. It is under the risk tab.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-237 Financial Jungle Guy Sat, 02 Jun 2007 03:15:43 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-237 Yes! I love it. Free R-Square info. Thanks for the tip. I looked up RBC Canadian Equity, the R-Square for the previous 5 years were 96.5%, 97.5%, 97.7%, 97.6% and 96.3%. This is well within the closet index fund territory. Yes! I love it. Free R-Square info. Thanks for the tip.

I looked up RBC Canadian Equity, the R-Square for the previous 5 years were 96.5%, 97.5%, 97.7%, 97.6% and 96.3%. This is well within the closet index fund territory.

]]> By: ETF Income http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-472 ETF Income Tue, 24 Jul 2007 19:01:00 +0000 http://financialjungle.com/2007/05/27/investing/the-dirty-secret-behind-closet-index-funds/#comment-472 I always tend to buy a basket of income trust to avoid individual stock risk. ETF Income etfincome.blogspot.com I always tend to buy a basket of income trust to avoid individual stock risk.

ETF Income
etfincome.blogspot.com

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