Pay less for more

    Have you ever paid a premium for a service or product that’s inferior? According to the Globe and Mail; “It’s time to shed a bright light on one of Bay Street’s most annoying and well hidden practices."


     The Globe and Mail is referring to Closet Indexing, or a mutual fund that closely mirrors an index fund, but charges high fees, masking itself as managed. Clients believe the fund is actively managed, meaning the Fund Manager selects specific stocks, but in reality they are just following the market and charging their investors a premium.

Unfortunately, investors have no real way to tell. 

     The Ontario Securities Commission (OSC) is reviewing Canadian mutual funds to determine if they are actively managed, since many studies show they UNDERPERFORM the index 75-90% of the time. 

     In the mean time, avoid paying eight times more for a product that has a 90% chance of underperforming. Take time today to ask your advisor about the top 10 stocks held in your RRSP, RESP or TFSA. I would guess your largest holdings are four big banks, three major oil companies and two well known utilities, translation: you are Closet Indexing.

So why not buy an index fund for .03% and save the 2.5% that you pay for this active fund?

It’s not difficult

At Middle Retirement we are here to show you how.


"We are with you every step of the way."


It's Time

Understand What You Own

Reduce Fees Avoid Risk