Comparing Canadian Index Fund

1stmilliondollar — Sun, 27 Jun 2010 12:33:49 +0000

Before today, we were thinking that all Canadian index mutual funds should have the same (or at least similar) return over a couple of years. We are just surprised learning that it is not the case.

There are a couple of Canadian index mutual funds from major institutions in Canada, e.g.:

If we use chart comparison from The Globe and Mail, the chart of those funds in the last 10 year looks like the following:

The chart above assumes that we invest $10,000 in January 2000.

As we can see here, the four funds above have different result. CIBC Canadian Index has the lowest return, i.e. $15,713. Meanwhile, RBC Canadian Index has the highest return, i.e. $16.529.

There is more than 6% difference between the return of CIBC Canadian Index and RBC Canadian Index. We are not really sure why. We are also not sure why the gap between S&P/TSX total return and those funds are quite significant.

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S&P 500 Year-to-Date Return –3.9%

1stmilliondollar — Thu, 20 May 2010 23:30:08 +0000

Today, we had a little bit of pullback in major market indices all around the world. S&P 500 is down –3.9% today. The return of S&P 500 year-to-date is now –3.9%. It’s not too bad considering we had a pretty nice run last year.

Let’s take a look at the return of major indices around the world:

S&P 500: –3.9%
Dow Jones Industrial Average: –3.45%
Nasdaq Composite Index: –2.87%
S&P/TSX Composite Index: –2.9%
Shanghai Composite Index: –21%
Hang Seng Index: –10.64%
Nikkei 225 Index: –4.89%
FTSE 100 Index: –6.28%

So far, North American indices beat other major indices; while emerging market indices seems to be lagging. Will we see another bear market ahead? Nobody knows…

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Comparing Canadian Index Fund

S&P 500 Year-to-Date Return –3.9%