We have been looking for a low-cost emerging market funds recently. Yes, we would like to increase our emerging market exposure by buying mutual funds regularly, either biweekly or monthly.
Why not emerging market ETF? Well, it is unfortunate that we cannot buy commission-free ETFs in Canada yet. We just hope that this will come soon.
We read about Claymore’s Pre-authorized Contribution Plan (PACC). It sounds like a very good plan. Unfortunately, our bank is not in the participating list yet. It is either we have to move our funds first to one of the participating institutions; or just wait until our bank is supported.
Anyway, we are using fund filter from The Globe and Mail to do our filtering. Here is the filter that we use:
- Asset class: Emerging Market Equity
- MER: 2.5% –> we don’t want to pay funds that have very high MER
- Load Type: No Load
- Fund Type: Open-Ended
As of today, the filter gives 19 funds. Some of them are actually ETF; so they can be eliminated. Some others are for advisors that charges fees; so they can be eliminated as well.
After eliminating some of the funds, here is the list that we got:
| Fund name | MER |
| CIBC Emerging Market Index | 1.35% |
| Mackenzie Univ Emerging CI-M | 2.23% |
| RBC Emerging Market D | 1.42% |
It seems that our options are only CIBC Emerging Market Index or RBC Emerging Market D. We just eliminate Mackenzie fund because the management fee is just too high. Besides we don’t quite understand what “-M” at the end of the fund name means.
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