It’s not every day we get to be on national TV (literally, The National)! We were so excited to get interviewed by the CBC this week. The big story? How an increasing number of Canadians switching from mutual funds to investing in Exchange Traded Funds (ETFs). ETFs are the funds we use with our client portfolios.
“Deciding how to invest your money is just as important as how much,” said Canadian icon Peter Mansbridge, shortly before the view switches to WealthBar’s office in downtown Vancouver (Start at the 14.30 mark for this clip).
Mutual funds are a common and often default choice for many Canadians, who often pay large sums in management fees for the privilege. But that’s changing as more people turn to ETFs for their lower management fees.
ETFs can offer lower volatility and potentially better returns than traditional investing in individual stocks. It’s hard to predict what the markets will do. If you can keep your management fee lower and reduce the risk of a single stock collapse jeopardizing your savings, you can come out ahead. More and more, that’s the calculation that Canadians are making.
Those who have already made the change to ETFs are in very good company: investment titan Warren Buffet, one of the world’s best-known investors, seems to like them a lot. The CBC quoted Buffet from a recent shareholder letter: “1,000 monkeys would be just as likely to produce a seemingly all-wise prophet.” In other words, even the highest-paid investing professionals can’t provide anything like a guarantee on investments in individual stocks – which makes ETFs the safer bet.
ETF funds. A better option for Canadians
So, what exactly did we have to say about all of this, considering our focus on low-cost ETFs? For the most part, this has been part of a great democratization of funds, WealthBar CTO Chris Nicola said.
What does that mean, exactly? Well, we’re talking about why we got into this business in the first place. From the start, our founders Chris and Tea Nicola had a vision of giving top-tier wealth management capabilities to all Canadians. Using WealthBar’s online investing platform, this kind of access to ETFs opens up to nearly every kind of investor.
Chris touched on one more important point in the interview: there’s still a need for human help for big-picture financial planning. He said it’s sort of like having a coach or a personal trainer, keeping you on track with a plan.
On that note, some investors who hear the term ‘robo-advisor’ think we’re totally automated, data driven and run by algorithms. Nothing could be further from the truth.
Our very human (and awfully smart) dedicated financial advisors are there for you when you need them. They’re not just around for a once-a-year tick-the-boxes interview like you might get at a bank.
It’s an exciting thing to be given a national TV platform, if only for a moment. It gave us a chance to fulfill another one of our missions: helping educate Canadians about investing to help make it straightforward and easy to do. Thanks again, CBC! And thanks to all of the viewers: friends, family, clients and even a few total strangers who got in touch to give us a pat on the back. We really appreciate it.