# ETF equivalents to TD3099 and TD3098



## Money172375 (Jun 29, 2018)

I’ve held the TD Science and tech MF, along with the TD Health Sciences MF for 15-20 years In my RSP. These are my last two MF holdings after moving to ETFs over the last 2 years.

MERs are 2%. I’m up 900+% and 600+% in each so pretty happy.

that being said, are there any lower cost ETFs that would mirror their performance/holdings?

thanks


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## Jimmy (May 19, 2017)

The Ark ETFs are great. ARKW Disruptive technology was the top returning US ETF over the past 5 yrs from ETF.com. ARKG Genomics was the top healthcare ETF.
They have Canadian versions from Emerge too - EARK and EAGB. The fees are high w trading ~ 1.8% but still worth it.


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## scorpion_ca (Nov 3, 2014)




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## james4beach (Nov 15, 2012)

Money172375 said:


> I’ve held the TD Science and tech MF, along with the TD Health Sciences MF for 15-20 years In my RSP. These are my last two MF holdings after moving to ETFs over the last 2 years.
> 
> MERs are 2%. I’m up 900+% and 600+% in each so pretty happy.
> 
> that being said, are there any lower cost ETFs that would mirror their performance/holdings?


Yeah the MERs are high. TD Science and Tech is a US-focused fund and its largest holdings are
Alibaba 6.7% (actually Chinese)
Amazon 5.9% (US)
Facebook 4.6% (US)
Netflix 4.4% (US)
Other top holdings: salesforce, workday, servicenow, alphabet (all US)

My guess is that the American QQQ ETF would be somewhat similar, though there are notable differences in holdings. You'll never find a precise match so I suggest trying to find an ETF which seems to match the performance most closely. Following performance figures are all in CAD

TD Science and Tech has performance:
1 year: 55%
5 years: 21% annualized
10 years: 23% annualized
15 years: 16% annualized

QQQ performance, with some calculations done to convert currencies:
1 year: 42%
5 years: 22% annualized
10 years: 23% annualized
15 years: 16% annualized

Looks like QQQ is equivalent. But more interestingly, your high-fee TD mutual fund isn't underperforming. The fund manager seems to be adding enough value to compensate for the high fees you're paying him/her. I'm not sure switching to QQQ is a win.

Consider that the mutual fund manager is constantly changing over time. They've clearly had some good fund managers. But if they get a bad fund manager, the performance could drop ... so from that angle, it might be better to go with an index ETF even if the performance has historically been the same. It would insulate you from 'manager risk'.

If you don't want to buy the US listed QQQ, there's an equivalent from BMO called *ZNQ*

ZNQ trades in CAD but tracks the same index as QQQ, so I think it would have historically had the same performance shown above (which matches your mutual fund's performance)

ZNQ - BMO NASDAQ 100 Equity Index ETF, and MER is 0.38%


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## Sajed (Jan 3, 2021)

Money172375 said:


> I’ve held the TD Science and tech MF, along with the TD Health Sciences MF for 15-20 years In my RSP. These are my last two MF holdings after moving to ETFs over the last 2 years.
> 
> MERs are 2%. I’m up 900+% and 600+% in each so pretty happy.
> 
> ...





Money172375 said:


> I’ve held the TD Science and tech MF, along with the TD Health Sciences MF for 15-20 years In my RSP. These are my last two MF holdings after moving to ETFs over the last 2 years.
> 
> MERs are 2%. I’m up 900+% and 600+% in each so pretty happy.
> 
> ...


Hey,
TD has the TD US index e series that mimics the S&P 500 index. Can you think of any reason why one would go over TD US index vs TD science and technology? MER for TD US index is lower than TD science and technology.


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## Money172375 (Jun 29, 2018)

Sajed said:


> Hey,
> TD has the TD US index e series that mimics the S&P 500 index. Can you think of any reason why one would go over TD US index vs TD science and technology? MER for TD US index is lower than TD science and technology.


They’re very different. One is a broad based market index and one is a sector fund. index Funds will almost always have lower MERs than an actively managed sector fund


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## Sajed (Jan 3, 2021)

Money172375 said:


> They’re very different. One is a broad based market index and one is a sector fund. index Funds will almost always have lower MERs than an actively managed sector fund


i was thinking to choose between td nasdaq index e vs td us equity e. i feel like nasdaq e has better returns overall and snp grows due to the tech companies in nasdaq. given covid, tech sector will grow more i feel


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## dcris07 (Nov 23, 2020)

Sajed said:


> i was thinking to choose between td nasdaq index e vs td us equity e. i feel like nasdaq e has better returns overall and snp grows due to the tech companies in nasdaq. given covid, tech sector will grow more i feel



Hey Sajed

Have you ever given thought to using ETFS over the E series funds ? They are usually a lot cheaper than any kind of Mutual fund and you can buy and sell whenever you like no need to talk to anyone.

For Nasdaq you could look at ZQQ ETF, one of my personal favorites, MER is supper low and is almost impossible to beat this index, so for me it becomes a question of why pay more for anything that will most likely not beat the index especially as something as hard to beat like the Nasdaq 100.


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## Sajed (Jan 3, 2021)

dcris07 said:


> Hey Sajed
> 
> Have you ever given thought to using ETFS over the E series funds ? They are usually a lot cheaper than any kind of Mutual fund and you can buy and sell whenever you like no need to talk to anyone.
> 
> For Nasdaq you could look at ZQQ ETF, one of my personal favorites, MER is supper low and is almost impossible to beat this index, so for me it becomes a question of why pay more for anything that will most likely not beat the index especially as something as hard to beat like the Nasdaq 100.


It seems expensive i was looking at td nasdaq index TDAM | Mutual Fund Card

looks cheaper right?


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## Ponderling (Mar 1, 2013)

I do a lot of individual stock holdings for equity, but apart from 10 amazon shares, we don't buy tech co's individual shares. I use IYW to do that, and I seem to recall it has a low mer.


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## dcris07 (Nov 23, 2020)

Sajed said:


> It seems expensive i was looking at td nasdaq index TDAM | Mutual Fund Card
> 
> looks cheaper right?


MER On this fund is .50% the MER on ZNQ BMO Nasdaq 100 Un hedged to USD is .38 an d.39 for ZQQ ( Hedged to CDN), I haven't seen any mutual funds out there that have lower costs than ETFS generally. Furthermore what we need to consider when comparing the two options is why pay more for the exact same investment ? They both invest to replicate the performance of the Nasdaq 100

*Link to BMO ETF ZNQ Product page*

Sure 12 basis points doesn't sound like alot more but if you are investing for the long run ( Which most people are) it can add up and take away from your performance.

When comparing apples to apples I always go with the lower MER as I am young and will be holding this for 30 years in my RRSP account, So that will translate to more money in my pocket inside of TD fund managers.


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