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

• CIBC Canadian Index
• RBC Canadian Index
• Scotia Canadian Index
• TD Canadian Index

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.

Link

• Funds Filter from The Globe and Mail
• Searching for Good Canadian Mutual Funds
• Searching for Low Cost Emerging Market Funds

We just read a news from The Globe And Mail about performance of Canadian equity funds. Many actively managed mutual funds in Canada cannot beat the index, i.e. S&P/TSX composite index. Here is the result:

• Year 2009: 39.2% of actively managed funds beat the index
• Over 3 years: 12.5% of actively managed funds beat the index
• Over 5 years: 7.7% of actively managed funds beat the index

That’s why; we recommend to invest in the index. As you can also see from our portfolio, most of our money is currently parked in the index as well. Only small amount of money that is used for speculation, including stock picking and timing the market. That’s why; we still have stock picks and participate in the Canadian blogger’s stock picks contest.