The Power

            of ETFs

What are the Benefits of ETFs?

Diversification

ETFs can provide exposure to various asset classes such as equities or fixed income and a broad range of sectors and geographic regions including commodities or emerging markets. 

The effects of MERs on your Investments

All Investments are assumed to make the exact same return over the next 20 years. This is to illustrate the power of low Management Expense Ratio (MER) fees.

Lets assume in all three cases that you start with a $1,000,000 deposit and let it grow in an investment for 20 years without being touched or contributed to. All scenarios have an annual return of 7% before MERs. 

MERs:                           3%

Return after MERs:          4%

1st year MER cost:         $30,000

Investment after 20 yrs:  $2,191,123

MERs:                           2%

Return after MERs:          5%

1st year MER cost:         $20,000

Investment after 20 yrs:  $2,653,297

MERs:                           1%

Return after MERs:          6%

1st year MER cost:         $10,000

Investment after 20 yrs:  $3,207,135

Note: When dealing with ETFs, it is important to remember that transaction costs (i.e. stock commissions) are incurred for every buy or sell, and advisor compensation, if any is extra. Investors who are considering adding one or more ETFs to their portfolio should first take a careful look at their situation, investment style, knowledge level and time horizon to determine whether an ETF fits their overall investment strategy.

Mutual funds are distributed through PEAK Investment Services Inc. They may give rise to brokerages, trailing commissions, management fees and other expenses. Please read the prospectus before making an investment. Mutual funds are not guaranteed, their values ​​often change and past performance is not indicative of their future performance. The responsibility of PEAK Investment Services Inc. is limited to the products it distributes.

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