#Trade stocks tangerine bank plus#

Compare that to the new Equity Growth ETF Portfolio, which comprises almost 58% US equities, with less than 3% in Canada. Even the asset allocation ETFs from Vanguard, iShares and BMO have a target of about 25% to 30% for Canadian stocks. The Tangerine Core Portfolios (as well as the traditional Couch Potato models) include equal amounts of Canadian, US and international stocks. Source: Tangerine Investment Funds, as of ApCore differencesĪ glance at the table above reveals the most significant difference between the Global ETF Portfolios and the Core Portfolios: the asset allocation. The Global ETF Portfolios combine these five asset classes in three different versions, ranging from moderate to aggressive: Asset Class Since Scotia’s ETF lineup does not include an emerging markets fund, the Tangerine portfolios include an allocation to XEC to cover that asset class. On the international equity front, the MSCI EAFE and its comparable Solactive index both track the performance of hundreds of large and mid-cap stocks in developed countries outside North America. Similarly, the Solactive GBS United States 500 CAD Index holds 500 large US companies, much like the S&P 500. The Scotia ETFs use Solactive as their index provider: this firm produces indexes very similar to better-known versions from S&P and MSCI, which are the benchmarks used by the Tangerine Core Portfolios.įor example, the Solactive Canada Large Cap Index is a variation of the S&P/TSX 60: both include 60 of the country’s largest companies. Scotia Canadian Large Cap Equity Index Tracker ETF IShares Core MSCI Emerging Markets IMI Index ETF Scotia International Equity Index Tracker ETF Scotia’s four index ETFs are the main underlying holdings of the new Tangerine funds: ETF name Not coincidentally, the launch of the Global ETF Portfolios came just a month after Tangerine’s parent company, Scotiabank, released its own suite of ETFs, becoming the fourth of the Big Five banks to do so.

Those conveniences are certainly real, but you pay for them: the MER of the new Global ETF Portfolios is 0.77%, which is cheaper than the Core Portfolios, but almost 10 times the cost of the underlying ETFs themselves, and triple the cost of most asset allocation ETFs. On its Global ETF Portfolio FAQs page, Tangerine argues that this structure “means you get the lower cost benefits of ETFs combined with the benefits of mutual funds-such as automatic contributions, rebalancing and dividend reinvesting.” Well, not really. They are not traded on an exchange, nor are they available through any online brokerage.

As we’ll see in a moment, they use ETFs for their underlying holdings, but like the Core Portfolios they are traditional mutual funds you buy directly from Tangerine. In our latest blog-and-video collaboration, Justin and I look at how these funds compare with the Core Portfolios, and consider whether they’re a good alternative to the Couch Potato models.īefore we look at these portfolios in more detail, let’s get one thing out of the way: despite their name, the Global ETF Portfolios are not ETFs. No doubt Tangerine noticed this too, so late in 2020 they launched a new family of three Global ETF Portfolios. Or, if you’re willing to pay a little more for convenience, roboadvisors will build and maintain an ETF portfolio for you for less than you’ll pay for the Tangerine funds. Today you can use an asset allocation ETF at a zero-commission brokerage to build a hands-off portfolio at roughly one-fifth that cost. While I still love the convenience and simplicity of the Tangerine Core Portfolios, their 1.06% MER has made them increasingly uncompetitive. Justin Bender and I even wrote a white paper about their virtues, and they were a staple in my model portfolios until 2020. Later rebranded as the Tangerine Core Portfolios, they were the easiest and most cost-effective way for small investors to build a globally diversified passive portfolio.

#Trade stocks tangerine bank plus#

Like the one-ticket ETFs that followed a decade later, these mutual funds held a mix of Canadian, US and international stocks, plus a helping of bonds, all tracking familiar indexes, and rebalanced automatically. Way back in 2008, the online bank ING Direct launched what they called the Streetwise Funds.

Asset allocation ETFs were revolutionary when they appeared in 2018, but they were hardly the first products that allowed Canadian investors to own a diversified index portfolio with a single fund.