Investorial

Here’s an update to the whole Canadian TD Waterhouse, Amertirade merger. Myself and many commenters have previously voiced our displeasure at the high comission rates that Canadian traders / investors have to endure. Ameritrade Canada was a haven with its $10.99 rate until the hammer dropped to consummate TD and Ameritrade’s relationship. They were further insulted by the lack of tools on TD Waterhouse’s Canadian trading platforms.

To appease the Ameritrade converts, TD Waterhouse Canada instituted a “Welcome To TD Waterhouse” $9.99 comission rate. The offer since June was set to expire today. But former Ameritrade Canada clients are getting a stay-of-execution as TD Waterhouse announces that they will extend the special rate until November 3rd, 2006. How should long-time TD Waterhouse customers (not from Ameritrade) feel about this offer extension? (more…)

Mutual funds are still the no-brainer solution for the average joe who couldn’t care less about reading financial statements, or spend the time day-trading. Much “marketing” debate has been made about management fees. They’re not wrong to be critical but everything is really dependent on the “net” returns you’re able to achieve. My only concern is that consumers do the minimum work of researching the track-record of the fund and the fund manager. A long, consistent and positive tracking record is a must for active-managed funds.

But when John Bogle, founder of Vanguard, decided to balk the norms of the financial industry and aggressively market passive index funds, it was a strong indictment on the vast majority of managers who fail to beat their corresponding benchmark indexes. Vanguard’s promotion of this strategy still trumpets strongly, but there are signs of shifting towards actively managing their index funds, even if it’s just a little bit! (more…)