Another Toronto-based advisor, Victor Lamba of the Investors Group, agrees, but is not convinced Fidelity’s lower-fee offering will have such a deep impact on Canadian investors. He advises investors shift their focus away from lower MERs and consider the value of good advice.
“At the end of the day, even if you are paying MERs that are a little bit higher (percentage) through your financial advisor or planner, you have to think of what you’re getting,” says Lamba. “What investment advisors bring to the table is not only a product, but our knowledge and our expertise.”
Fidelity’s new offering includes (according to a prospectus filed with the SEC):
• Fidelity MSCI Consumer Discretionary Index ETF
• Fidelity MSCI Consumer Staples Index ETF
• Fidelity MSCI Energy Index ETF
• Fidelity MSCI Financials Index ETF
• Fidelity MSCI Health Care Index ETF
• Fidelity MSCI Industrials Index ETF
• Fidelity MSCI Information Technology Index ETF
• Fidelity MSCI Materials Index ETF
• Fidelity MSCI Telecommunication Services Index ETF
• Fidelity MSCI Utilities Index ETF
• BlackRock Fund Advisors with subadvise the fund for Fidelity
• Fidelity offered one ETF, the Nasdaq Composite Tracker Stock
What impact do you think Fidelity’s low-fee ETFs will have on Canada? Tell WP your thoughts in the 'comments' section below.