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iShares Core S&P Mid-Cap ETF (IJH $70.46)
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TD U.S. Mid-Cap Growth Fund - D Series (TDB3093 $22.42)
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TD Health Sciences Fund - D Series (TDB3099 $24.38)
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Mulvihill U.S. Health Care Enhanced Yield ETF (XLVE $7.79)
Q: What is your opinion of these 2 mutual funds. I have held for years but wondering if there is a better ETF to move the funds into or just keep theses two funds. They are held in a RRSP. Thanks
5i Research Answer:
We think health sciences could easily be replaced with XLV. It is a decent-enough fund, with a since-inception return of 8.79%. But MER is quite high at 1.61%. Its holdings and structure are fine.
TD mid cap since-inception is 9.55%. Fees are lower at 1.33%. This is a tougher call. The fund (relatively) has done well. IJH, a similar ETF, has a since-inception of 9.43%. The TD fund has slightly outperformed. IJH has a very low fee of 0.05%. Over time, IJH will probably outperform simply due to the 1.28% fee differential compounded over years. We would still be fine with a switch here to IJH, though we could be OK with the TD fund as a hold. We do expect midcaps to do well this year.