Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

Small ETF Fees matter more Near Findependence

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By Callum Melville, WealthRadiant.com

Special to Financial Independence Hub

Most Canadian ETF investors already know that fees matter. The harder question is how much attention they deserve.

Early in the Accumulation years, the honest answer is often less than people think. If someone has a $15,000 portfolio and is still building the habit of investing every month, the difference between a 0.06% ETF and a 0.20% ETF is not the main thing deciding their future. Saving rate, asset allocation, behaviour, and simply staying invested usually matter more.

But the math starts to feel different as a portfolio approaches retirement size.

A 0.14 percentage point fee gap sounds tiny. On $25,000, it is about $35 per year before compounding. On $1,000,000, it is about $1,400 per year before compounding. Over a long retirement or semi-retirement period, that difference can become large enough to be worth a second look.

That does not mean every investor should chase the lowest possible MER. It does mean investors near Financial Independence (Findependence) should translate fee percentages into dollars before deciding that a small-looking fee difference is irrelevant.

Why MERs are easy to ignore early on

Management Expense Ratios are strange because investors rarely pay them as a separate bill. The fee is embedded in the fund’s return. You do not log in and see a line item saying, “ETF fee paid today.”

That makes MERs easy to underweight. A 0.20% fee looks almost invisible beside the normal movement of the market. One ordinary trading day can move an equity ETF by more than the annual MER.

For newer investors, this is not always a bad thing. The biggest investing mistakes at the beginning are often behavioural: waiting too long to start, holding too much cash for no clear reason, changing strategy every few months, or building a portfolio that is too complicated to maintain.

If an All-in-One ETF helps someone invest consistently, rebalance automatically, and avoid tinkering, the slightly higher MER can be a reasonable price for simplicity. A cheap portfolio that someone cannot stick with is not really cheap.

Why fees feel different near retirement

Near Findependence, the same fee percentage applies to a much larger base.

Consider a simple example. A 0.20% MER on a $1,000,000 portfolio is roughly $2,000 per year before compounding. A 0.06% MER on the same portfolio is roughly $600 per year. The gap is about $1,400 in the first year.

That is not life-changing by itself, but it is no longer abstract. It might be a month of groceries, a short trip, part of a property tax bill, or simply money that could stay invested.

The compounding effect is what makes the check worth doing. Using a simplified 25-year projection with a 6% gross annual return, a $1,000,000 portfolio at a 0.06% MER grows to about $4.23 million. The same portfolio at a 0.20% MER grows to about $4.09 million. The difference is roughly $138,000 over 25 years.

That example is deliberately simplified. It ignores taxes, trading costs, changing returns, withdrawals, and Asset Allocation differences. Real life will not move in a smooth 6% line. But it shows why a basis-point difference that looked harmless early on can deserve attention once the portfolio is large.

What a recent Canadian ETF fee snapshot showed

I recently reviewed MERs and historical fee anchors for 30 popular Canadian-listed ETFs across Vanguard, iShares, BMO, and Global X. The goal was not to find the “best” ETF. It was to see where fees have compressed, where they remain higher, and where investors may be paying for convenience or product structure.

The broad pattern was clear:

  • Canadian total-market ETFs in the sample were extremely cheap, with VCN, XIC, and ZCN all at 0.06%.
  • S&P 500 index ETFs were also tightly clustered, with VFV, VSP, XSP, and ZSP all around 0.09%.
  • The all-in-one ETF category was more expensive, with the funds in the sample sitting roughly between 0.17% and 0.24%.
  • More specialized products, such as covered-call or sector ETFs, could be meaningfully more expensive.
  • Fee compression has not been even. Some plain index categories already look highly competitive, while other product types still carry a visible cost.

The average MER across the 30 ETFs was 0.178%, with a median of 0.140%. That is already low compared with many traditional retail mutual fund fee levels, but the spread still matters when applied to large portfolios.

For example, an all-in-one ETF charging around 0.20% may be perfectly reasonable for an investor who values simplicity. But compared with a plain Canadian equity ETF at 0.06% or an S&P 500 ETF at 0.09%, the dollar cost of convenience becomes visible as portfolio size grows.

The All-in-One ETF tradeoff

All-in-one ETFs are a good example because the fee conversation can easily become too rigid.

An investor can often build a lower-MER portfolio by holding separate Canadian, U.S., international, and bond ETFs. But the all-in-one fund handles asset allocation, rebalancing, and ongoing maintenance in one product.

That can be valuable. Retirees and near-retirees may not want more moving parts. Some investors do not want to rebalance manually. Others know that if the portfolio becomes too fiddly, they are more likely to second-guess it.

So the right question is not, “Is this ETF the cheapest?” Continue Reading…

BMO ETFs’ third annual ETF Investor Day aimed at DIY investors

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On Tuesday, BMO ETFs conducted its third annual ETF Investor day. Conducted at the Toronto Stock Exchange, Do-it-yourself investors and finfluencers [Financial Influencers] were on hand for the ceremonial opening of the exchange, shown in the photo on the left. The Investor Day will also be held in Montreal on June 18: Details here. 

This marks BMO’s 17th year as a Canadian ETF provider, with $165 billion in Assets under management and 66 tickers  with a 10-year track record.

The first presentation was an economic and investing overview from Fred Demers, Director of Multi Asset Strategy at BMO Global Asset Management. He teased whether the R word refers to a Recession or Resilience when it comes to forecasting the economy. While the world is likely to remain messy, “the good news is the world always carries on.”

Demers is particularly bullish about the long-term prospects of the U.S. economy and the Tech giants that power innovation and in particular the A.I. Capex boom and AI infrastructure buildout. Stock markets are already seeing beyond the drama of the war in Iran, he said, led by a 12% gain YTD 2026 in Emerging Markets, 9% or so for the Nasdaq and almost 8% for the TSX, as shown in the chart below taken from the presentation.

Fixed income is not doing much of anything, which is to be expected when the economy is doing well but would show its value if a Recession got under way accompanied by Job Loss, which he said is not yet where we are. Gold has returned almost 6%, disappointing given the Middle East conflict but “still doing its thing short-term.” Its role is not to diversify equities but to diversify fixed Income.

Obviously the oil shock hurts and is a clear negative for Growth but it remains to be seen how severe it will be. Demers said Trump’s Tariffs amount to basically the equivalent of a 3% GST (a reference to Canada’s Goods & Services Tax).

He said it’s good to diversify globally but investors worried about the impact of Trump should “be careful about exiting the U.S. entirely.” The AI race is primarily between the US and China and AI Capex will keep roaring for years if not for decades. We are “not even half way through the capex cycle.” AI Capex spending has reached a “phenomenal” US $350 billion, and is on track to pass US$750 billion in 2026; the hyperscalers are planning between $1.1 and $1.2 trillion.

By contrast, AI Capex in Canada is not even $50 billion. Just ten giant American companies generate a third of the country’s economic activity. These are the big-tech titans but the U.S. economy has also become an Energy Powerhouse: the biggest oil producer in the world and net exporter of energy. Next is Saudi Arabia and Russia, with Canada in fourth and Iran is ninth. (See chart shown in the Sector section below)

Sector ETFs

The second talk was by Simona Mocuta, managing director and chief economist for State Street Investment Management (shown on the left). BMO recently launched a suite of BMO SPDR Select Sector Index ETFs with State Street and sector investing was the focus of her talk.  She started by saying she agreed with everything Fred said, drawing laughs when she said “it’s nice to see a Canadian that still likes the United States.”

BMO’s vice president of Online Distribution ETFs Zayla Saunders asked Mocuta about a SPDR energy ETF [XLE/TSX] to capitalize on surging oil and gas prices sparked by the Iran conflict. “Go for it,” Mocuta says, “Talk AI all you want but you need Energy to make it happen.” With the Iran war, the U.S. is telling Europe to buy from the U.S., which makes Energy as “compelling buy-and-hold.” The chart below is from Demers’ presentation:

Among other sectors, Technology was by far the best performer in April, Mocuta said, but there have been over the last 12 months strong inflows into Industrials, Materials and Energy.” However, investors should also consider less-loved sectors like Healthcare.

In response to an audience question about the U.S. financial sector, Mocuta said that in the medium term banks are being deregulated, which is a huge positive after the regulatory burdens imposed after the Great Financial Crisis. Continue Reading…

Silver Tsunami: Why the Best Business Transitions involve a Warm Hand

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Image: Unsplash

By Jeff Johnstone, National Bank Financial Wealth Management

Special to Financial Independence Hub

In my world, financial planning is a lot like building a home. You can spend decades refining the interior — growing revenue, managing cash flow, building something you are proud of — but without a strong foundation, the entire structure remains vulnerable.  For the roughly 500,000 small business owners across Ontario, that foundation isn’t only  the balance sheet; it’s a clear, well-structured succession plan.

 We’re standing on the edge of what many call a “silver tsunami.” By 2030, more than one in five Ontarians will be 65 or older. It represents one of the largest transfers of leadership and wealth in history. Today, nearly 75% of business owners are planning to exit within the next decade. For founders, that creates a new reality because it’s no longer about finding just a buyer, it’s about being a business worth finding and buying. Yet while many expect to exit, few have a clear plan for what happens next.

 When entrepreneurs sit down with us, three themes tend to surface:

  • Concentration risk — the majority of their net worth is tied to a single asset: the business
  • Tax complexity — not whether tax will be paid, but how much can be preserved
  • Uncertainty — stepping away is not just financial, but deeply personal

 These challenges are all interconnected. For incorporated business owners, personal and corporate wealth need to be aligned: linking how value is created inside the business with how wealth is ultimately realized outside of it. The goal isn’t  to extract value at the end, but to translate it gradually into long-term financial independence.  Without that bridge, the business risks becoming not a means to an end, but the end itself.

Founders often underestimate Timing

 One of the biggest misconceptions we see is timing. Many founders believe they can decide to sell and complete the process within six months. When in reality, a successful, high-value transition rarely follows a short-term timeline. The average timeline is closer to five years from initial planning to final sale. Understanding this matters because, if you wait until you’re ready to exit — or until you’re burned out — and believe it can be all closed quickly, you’ve already lost leverage and, in many cases, left value on the table. Buyers don’t just assess financial performance; they assess risk. A business heavily dependent on its founder carries a very different profile than one that can operate independently.

 The earlier you start, the more control you have. That’s the takeaway here.  Early planning changes what buyers see. It creates time to strengthen management, reduce key-person risk, and professionalize operations. It also allows for what I often describe as a “financial clean-up”—organizing financials, addressing shareholder loans, and ensuring the business can run without you at the center.  Because ultimately, it’s about being profitable, as well as it’s being sellable.

 One of the  most complex parts of succession is rarely financial, and  happens outside the boardroom and round the dinner table.  We call this “dinner table math,”  when assumptions are made but haven’t (or rarely) been discussed. For example, parents may assume the children will take over the business, but they do not want to. Yet,  the children may feel obligated to, even if their interests lie elsewhere. Beneath it all are unspoken expectations about what feels fair.

Where many transitions begin to unravel

 This is where many transitions begin to unravel. Nearly 70% fail because of breakdowns in communication and trust, versus market conditions. For example, in one case we had one family assume the business would pass to the next generation. Through structured conversations, it became clear that while the children respected what had been built, none of the kids wanted to run it. That honesty  was difficult, but the clarity was necessary.  It opened the door to a different path that was  focused on a structured sale to an external buyer, alongside a plan to distribute proceeds in a way that felt fair and transparent. Just as importantly, it preserved the family relationships.

 These are not decisions founders should navigate alone. With the right advisory team — wealth advisors, accountants and legal professionals — we can help create space for better conversations and more thoughtful decisions.  In our experience, the best work happens alongside a dedicated M&A and investment banking team who can help deliver a more coordinated approach. Preparation becomes more intentional, buyer selection more strategic and outcomes — across valuation, structure, and legacy — more aligned with what matters most. Continue Reading…

Retired Money: FIRE Bloggers starting Early Retirement in their 50s and even 40s

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Deposit Photos

My latest MoneySense Retired Money column looks at a handful of FIRE bloggers who should be familiar to readers of this site, Findependence Hub: notably Mark Seed of myownadvisor and Bob Lai of Tawcan.

As you can see by clicking on the column headline, How are FIRE adherents making out?, Seed recently announced he has reached his Financial Independence in his early 50s. Bob Lai, meanwhile, is still working in his 40s but blogged on how he hopes to reach Findependence before 2030.

The MoneySense column also updates the status of veteran personal finance columnist Rob Carrick, who ended full-time employment at the Globe & Mail last year, the subject of an earlier Retired Money column.  And we mention a good blog by The Retirement Manifesto’s Fritz Gilbert about the 12 Good Years between age 60 and 72. As I ironically close the column with, it seems I have just used up my own 12 good years!

The real focus of the MoneySense column is however Mark Seed, just as it was Carrick last summer. In both cases, we exchanged views in Zoom or GoogleMeets over the course of an hour or so.

By now, it’s hardly necessary to remind readers that the FIRE acronym stands for Financial Independence Retire Early, as the image above  illustrates.

Note that our FIRE subjects in the column span four decades: Lai his 40s, Seed his 50s, Carrick his 60s and I am in my 70s, evidently still running this website and writing for MoneySense, a former employer.

The end of Salaried Employment does not mean no more Working

The observant reader will note that none of the bloggers mentioned here have actually begun the traditional “Full-Stop Retirement.” When FIRE proponents describe Early Retirement, they usually mean leaving the comfort of full-time salaried employment and all that it entails: commuting, bosses, endless meetings, tax deducted at source, annual performance reviews and so on. Continue Reading…

When to Sell your Precious Metals for Financial Benefits

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Find out when selling gold, silver, and other assets makes financial sense, and how timing, market conditions, and personal goals can shape better decisions.

Image courtesy Adobe Stock/Photographer: DragonImages

By Dan Coconate

Special to Financial Independence Hub

Selling gold or silver can support a stronger financial plan when the timing fits both market conditions and personal needs. The best decision often comes from balancing price trends, tax impact, and short-term cash goals instead of reacting to headlines.

Many households hold metals as a hedge, a store of value, or part of an inheritance. Knowing when to sell precious metals can help turn those holdings into funds for debt repayment, emergency savings, or major life expenses.

Start with the Reason for Selling

A clear purpose should guide the decision before any item goes on the market. Selling to cover high-interest debt or build a cash reserve often creates more financial benefit than holding metals during a period of flat prices.

Selling also makes sense when an asset no longer fits a broader plan. A collection that sits unused may offer more value as liquid funds than as a long-term holding with no clear role.

Watch Market Prices and Economic Conditions

Precious metal prices often move with inflation concerns, interest rates, and investor sentiment. A strong price run can create a good exit point, especially when gains meet a specific financial target.

Timing should still rest on more than the market alone. A solid sale happens when favorable pricing lines up with a real financial need or a planned shift in asset allocation.

Understand what you Own before Setting a Price

Not every item should sell based only on melt value. Coins, flatware, and older pieces may carry collectible or historical value that changes the right selling strategy. Continue Reading…