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  5. RBF5733: Hello, I hold RBF5733 & RBF5737 in my RRSP from a previous employment contribution plan. [RBC Canadian Index Fund Series F]
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Q: Hello, I hold RBF5733 & RBF5737 in my RRSP from a previous employment contribution plan. Would you consider VFV a suitable replacement for a lower MER and a bit of a dividend or is there a compelling reason to stick with the two RBF funds?
Thank you
Asked by Randy on December 08, 2023
5i Research Answer:

VFV has outperformed both funds on a five-year basis, although its yield is lower than RBF5733. Both funds have a higher MER than VFV, where RBF733 has a 0.17% MER, RBF5737 at 0.21%, and VFV at 0.09%. VFV is also more liquid than both funds, with an AUM of $9.8B, whereas the RBC funds have AUMs around $2B. RBF5733 pays a higher yield of 3.5%, but it has underperformed the other two, and we see it as more of a play on yield. 

For an investor that is looking for a lower cost, higher performing, more liquid, fund, we prefer VFV over both funds, however, RB5733 does have a slightly higher yield (at the expense of capital appreciation) and execution costs need to be considered. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.

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