| Fund Company | Scotia Asset Management |
| Fund Type | U.S. Equity |
| Rating | $$ |
| Style | Index |
| Risk Level | Medium |
| Load Status | No Load |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Emiliano Rabinovich since March 2011 |
| MER | 1.14% |
| Code | BNS 351 |
| Minimum Investment | $1,000 |
Analysis: This index fund is designed to replicate the performance of the S&P 500 on an after fee basis. Unlike many index funds, this one gets its investment exposure through the use of derivatives, rather than investing in the actual underlying stocks. Currency exposure is not hedged.
Performance has been in the lower end of all U.S. index funds that track the S&P 500. Its MER is 1.14%, which is one of the highest of the U.S. index funds. In comparison, the TD U.S. Index Fund carries an MER of 0.54% while RBC’s version carries an MER of 0.72%.
With index funds, costs are extremely important. The higher the cost hurdle, the more the fund will underperform the index. Considering this, we believe that there are better index fund options available. Further, we believe that there are better U.S. equity funds available.