TD e-Series (TFSA): Which would you pick?
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Thread: TD e-Series (TFSA): Which would you pick?

  1. #1
    Junior Member
    Join Date
    Aug 2009

    TD e-Series (TFSA): Which would you pick?

    Going to be doing bi-monthly contributions starting really soon. Got 20k in a Canadian Bond mutual fund(which isn't doing much right now) and I'm thinking of transferring 10k to TD to play around with the e-Series funds. What would your picks be?

    Your options:

    TD Canadian Index (S&P/TSX Composite Index)
    TD Dow Jones Industrial Average Index (DJIA Index)
    TD Nasdaq Index (Nasdaq-100 Index)
    TD U.S. Index (S&P 500 Index)
    TD European Index (MSCI Europe Index)
    TD International Index (MSCI EAFE Index)
    TD Japanese Index (MSCI Japan Index)

    Timeframe: short-term, maybe 2-3 years all funds will be taken out.

    Nasdaq has been doing really well lately, that was my 1st pick. Not sure where to diversify after that. Japanese Index is really low right now but I'm a bit skeptical of how long before their recovery really takes off, same goes for the Euro Index. International Index being weighted primarily between Japan and Europe gives me the same concern: really cheap now, but with the whole fiasco with Greece (Italy, Portugal), it's hard to make an assumption at this point.

  2. #2
    Senior Member Brad911's Avatar
    Join Date
    Apr 2009
    London, Ontario
    Your timeframe is far too short to be successfuly in what you're proposing so you can only "play".

    If you have the luxury of playing with that much money I'll be honest that no one here will be of much help getting you a better return than any random pick in the market.

    Do yourself a favour; either invest & diversify properly or simply put your money into something that you think is trendy & expect to lose some money or gain some money.
    Hidden Content - A Source for Value & Dividend Investing

  3. #3
    Senior Member
    Join Date
    Aug 2010
    Chatham Ontario
    Give me all your money, I'll tell you how I did in 2-3 years. In fact, I'll even guarantee your original investment.

    Park it in a TFSA savings account and be done with it.

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  5. #4
    Senior Member
    Join Date
    May 2009
    As others have indicated, it's not possible to pick one of those for you with the time frame you have specified, and without knowing a whole lot more about your overall portfolio and investor profile. None of them, by themselves, are suitable for a 2-3 yr. investmtent horizon.

    However, if you wanted to take a flyer, put 10K in TD Bond Index and 10K in TD CDN Equity Index. This will approximate the return from a CDN Neutral Balanced fund.

  6. #5
    Senior Member
    Join Date
    Mar 2010
    Do a risk capacity assessment. I used this one. This website breaks up components into large-small, value-growth, stocks-bonds-reits, US-Developed-Emerging. Use the results to come up with appropriate proportions of the different e-series funds. You will have to take out the emerging and reit components because there isn't an e-series equivalent. And you will have to rob some room from the US region to make a Canada region.

    *** TDB900, Canada Index, gives you exposure to TSX - mainly Financials, Materials and Energy.
    *** TDB902, US Index (S&P 500), gives you complementary exposure to diverse sectors, including a higher weighting in defensive sectors like Consumer Goods and Services, Health Care, Telecommunications and Tech. This fund is unhedged therefore lower MER.
    *** TDB908, US NASDAQ, is complementary to the other two above, with little or no Financial, Materials or Energy.
    *** TDB909, Canadian Bonds, the only bond option in e-series.


    ** TDB905, MSCI EAFE hedged to CAD. Similar sectors to TDB902, but in other countries. Represents a significant portion of the world market.

    *TDB903, DJIA: Only thirty stocks, with a high Materials component. So the SP500 is better for a portfolio that also has Canadian index in it.
    *TDB904, US index hedged to CAD, but with a higher MER than TDB902.
    *TDB911, MSCI EAFE unhedged is only slightly lower MER than hedged.
    You don't need the Europe or the Japanese ones because they are both contained in the EAFE funds, and the MERs are about the same.

    See the spreadsheet to see the impact of fund weights on the sector weights.
    Attached Files Attached Files
    Last edited by Soils4Peace; 2012-02-15 at 11:18 PM.

  7. #6
    Junior Member
    Join Date
    Aug 2009
    Some very good cautionary points from all, thanks.

  8. #7
    Junior Member
    Join Date
    Jan 2012
    Edit: Resolved

    Last edited by Tragically2112; 2012-02-24 at 01:24 PM.

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