Wei Woo from Research Capital has been doing presentations here at our centre for over 10 years, and has working in the financial planning and investment management industry for 16 years. Each month, he provides us with guest blog posts to educate us on a variety of financial topics. Make sure to watch our WSAC calendar to see when Wei will be in the centre doing his Toonie Talk presentations…we promise you won’t be disappointed.
Read his blog below
Mutual Funds Value in the Age of ETFs
In the landscape of modern investing dominated by ETFs (Exchange-Traded Funds), Mutual Funds retain their relevance and value proposition for a myriad of reasons. Firstly, Mutual Funds offer a diversified portfolio managed by professional fund managers who actively make investment decisions based on research and market conditions. This active management can potentially lead to superior returns compared to passively managed ETFs, especially in volatile or inefficient markets where skilled fund managers can exploit opportunities. Moreover, Mutual Funds often provide investors with access to niche markets, sectors, or strategies that may not be readily available through ETFs, catering to specific investment goals or risk appetites.
Furthermore, Mutual Funds offer a more personalized approach to investing, allowing for customization and flexibility. Unlike ETFs, which are traded throughout the day at market prices, Mutual Funds typically transact at the end of the trading day at the net asset value (NAV), providing a more stable and predictable pricing mechanism. This characteristic can be particularly advantageous for long-term investors who prioritize stability and are less concerned with intraday price fluctuations. Additionally, Mutual Funds offer various share classes and fee structures, providing investors with options to tailor their investment approach according to their preferences and financial circumstances. Ultimately, Mutual Funds continue to serve as a valuable tool in diversification, active management, and customization within the broader investment landscape alongside ETFs.
Like any investment that comes with it’s pros and cons, always work with your Financial Advisor on how a particular investment may fit into your retirement portfolio, given your risk tolerance, liquidity needs, and time horizon within the over context of your financial goals.
If you would like more information please contact Wei Woo:
Wei Woo
Investment Advisor, CIM, EPC
Research Capital Corporation
Private Client Division
Office : 780 – 460 – 6628
Cell : 780 – 299 – 0760
