AN B

International Women’s Day ONLINE GAMBLING SW AR

ER B
2024: Inspiring Inclusion In Is Here To Stay S R AR
Finance Lana Sanichar Page 15 Richard Morrison Page 22 EA A
DE S
R Q TE
UE W
CANADIAN MARCH/APRIL 2024
CANADIANMONEYSAVER.CA ST A
IO RT

MONEY
NS
agP
e3
4

Independent Financial Advice For Everyday Use - Since 1981 SAVER

WOMEN
& MONEY
IN 2024
Rita Silvan
Page 6

$4.95
PM40035485 R09904

DIVIDEND & COMPANY NEWS ■ ASK THE E XPERTS ■ TOP FUNDS ■ DRIPS ■ ETFS
Find us on Spotify and YouTube!
 EDITOR-IN-CHIEF: Lana Sanichar
EDITOR: Peter Hodson
CONTRIBUTING EDITORS:
Ed Arbuckle, Isabelle Beaudoin, John De Goey, Donald Dony,
David Ensor, Derek Foster, Benj Gallander, Janet Gray, Robert
Keats, Ken Kivenko, Marie-Josée Loiselle, Moez Mahrez,
Ryan Modesto, Richard Morrison, Caroline Nalbantoglu,
MARCH/APRIL 2024 Brian Quinlan, Wynn Quon, Rino Racanelli, Barkha Rani,
SPECIAL FEATURES Colin Ritchie, Norm Rothery, Rita Silvan, Allan Small,
Barbara Stewart, Kornel Szrejber, Brian Tang, Becky Wong.
Women And Money In 2024 Rita Silvan 6 MEMBERSHIP RATES: All rates for Canadian residents are
printed on the inside back cover. Non-residents of Canada
may purchase the online edition only at $19.99 for one year’s
Top Female Investors’ Top Tips For Business Success Barbara Stewart 8 service.
ADVERTISING: Canadian MoneySaver does not endorse or
recommend any commercial products, processes, or services
Time To Clean Up Your Finances Janet Gray 10 other than those specifically copyrighted and marketed
by Canadian MoneySaver. The advertising of products
and services in Canadian MoneySaver does not imply an
endorsement of any kind. All brands advertised are the
FEES Danielle Neziol 12
trademarks of their respective owners.
Please email advertising@canadianmoneysaver.ca
International Women’s Day 2024: for advertising inquiries.

Inspiring Inclusion In Finance Lana Sanichar 15 Canadian MoneySaver (CMS) is published by

The Canadian Money Saver Inc.,
470 Weber St North, Suite #104,
Waterloo, ON N2L 6J2
The Single Greatest Predictor Of Canadian Office hours: 9:30 am to 1:30 pm EST
Stock Market Returns – Part 1 Brian Chang 17 Website: http://www.canadianmoneysaver.ca
E-mail: moneyinfo@canadianmoneysaver.ca
Canadian MoneySaver publishes monthly with three double
Women In Finance 20 issues (July/Aug, Nov/Dec and March/April).
Canadian MoneySaver is an independent magazine.
The information contained in Canadian MoneySaver is
Online Gambling Is Here To Stay obtained from sources believed to be reliable. However, we
cannot represent that it is accurate or complete. The views
Flutter, DraftKings Dominate The Market Richard Morrison 22 expressed are those of the writers and not necessarily those
of The Canadian Money Saver Inc. Neither the information nor
any opinion expressed constitutes a solicitation by us for the
purchase or sale of any securities or commodities. Canadian
REGULAR FEATURES Sharing With You 4 MoneySaver is distributed with the explicit understanding that
Canadian MoneySaver, its publisher or writers cannot be held
Dividend & Company News 5 responsible for errors or omissions.
Shareholders of The Canadian Money Saver Inc, editors
Model ETF Portfolio 5 and contributors may at times have positions in mentioned
Annuities Offer Income For Life 24 investments/securities.

Money Digest 25 Copyright © 2024. All rights reserved.

No reproduction, transmission or publication of any of the
Top Dividend Yields For U.S. Companies 27 contents of Canadian MoneySaver is permitted without the
express prior consent of the copyright owner. To obtain
Insights From Sector ETFs 28 permission to use any part of Canadian MoneySaver,
Top Funds 30 contact Lana Sanichar.
® – Canadian MoneySaver is a Registered Canadian Trade
Ask The Experts 32 Mark of The Canadian Money Saver Inc.
Portfolio Confidential 34 Printed in Canada. ISSN: 0713-3286
TSX 60 - Constituents listed by Dividend Yield 36 We acknowledge the financial support of the
Government of Canada.
Canadian DRIPs 37
Canada Post Publication No. 40035485
Canadian ETFs 38
MARCH/APRIL 2024 Volume 43, Number 6
 Sharing With You

O
ne of the hardest things for an investor to do is to NOT SELL a company
whose shares are surging.

When a stock is flying, many will say it's a bubble. Many will say the move is
unsustainable. Many will say it is overvalued.

But is it?

One tip for investors who find themselves in the happy position of owning a stock up
100%, 200%, 300% or more is to ignore the stock price. That's right, ignore it. Look only
at the fundamentals. How is earnings growth? How is cash flow? Are sales accelerating? Is
debt being paid down? Is the company buying back stock? Are insiders buying?

We've noticed many stocks this year rising rapidly. Many are in the AI field. But many, such
as Eli Lilly (up 21% year to date and 111% over one year), are simply great growth companies.

In many cases, though, earnings growth is faster than stock price gains. What does this
mean? Well, it means even at a much higher stock price, your stock might actually be cheaper
than it was before, due to its fast earnings growth.

So, before simply selling, look under the hood. Your 'expensive' stock might actually be
'cheap', if it is growing fast enough.

Peter
Peter Hodson CFA
Founder and Head of Research
5i Research Inc.

4 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

 MoneySaver DIVIDEND& COMPANY NEWS
In this column we list recent news, events, dividend income news and any other relevant information
for MoneySavers. News items are those received after our last publication date.
Please go to https://www.5iresearch.ca/dividend-updates for a more comprehensive list of dividend updates.

■ Imperial Oil (IMO) raises dividend by 20%, ■ Canadian National Railway (CNR) raises dividend by 7%.

■ Brookfield Renewable Partners (BEP.UN)/(BEPC) ■ MTY Food Group (MTY) boosts dividend by 12%.
raises distribution/dividend by 5%.
■ Birchcliff Energy (BIR) cuts dividend in half.
■ Brookfield Infrastructure (BIP.UN), (BIPC) raises
distribution/dividend by 6%. ■ Becker Milk Co. (BEK.B) declares $1.00 special dividend.

■ Metro Inc. (MRU) raises dividend by 11%. ■ First Quantum (FM) halting dividend.

■ Chesswood (CHW) suspends dividend while ■ Algoma Central (ALC) increases dividend by 6%.
undergoing strategic review.
■ Chemtrade Logistics Income Fund (CHE.UN) raises
distribution by 10%.

Canadian MoneySaver MODEL ETF PORTFOLIO

# OF % OF
ETF SYMBOL CATEGORY PRICE TOTAL
UNITS PORTFOLIO
iShares 1-5 Year Laddered Corporate Bond CBO Fixed Income 17.66 506 8,935.96 4.3%
iShares DEX Universe Bond XBB Fixed Income 27.68 280 7,750.40 3.7%
iShares S&P/TSX Canadian Preferreds CPD Fixed Income 11.34 738 8,368.92 4.0%
iShares S&P/TSX Capped Composite XIC Equity: Canada 33.64 740 24,893.60 12.0%
iShares S&P/TSX Cdn. Div Aristocrats CDZ Equity: Canada Div. 31.30 613 19,186.90 9.3%
iShares U.S. High Yield Bond Index ETF XHY Fixed Income 16.40 350 5,740.00 2.8%
Vanguard FTSE Emerging Markets Index VEE Equity: Emerging 32.04 285 9,131.40 4.4%
Vanguard FTSE Developed Europe All Cap VE Equity: Interntional 33.10 304 10,062.40 4.9%
SPDR S&P 500 SPY Equity: U.S. 494.35 41 27,281.20 13.2%
Vanguard US Dividend Appreciation Index VGG Equity: U.S. Div. 80.06 217 17,373.02 8.4%
iShares Russell 2000 Growth IWO Equity: U.S. Growth 248.04 57 19,030.12 9.2%
BMO Covered Call Utilities ZWU Equity: N.A. Div 10.27 604 6,203.08 3.0%
Vanguard Information Technology Index VGT Equity: U.S 505.16 30 20,398.36 9.9%
Consumer Discretionary Select Sector SPDR XLY Equity: U.S 177.32 60 14,320.36 6.9%
Cash Cash Cash 8,353.61 4.0%
Total Portfolio 207,029.34

Exchange Rate 1.3497 $ Gain/(Loss): 107,029.34

Inception value: 100,000.00 % Gain/(Loss): 1.07
Inception date: October 18, 2013 % Annualized: 0.07

Prices are at market close on Feb 2, 2024.

Individual prices are in USD$. Portfolio values, $Gain/(Loss), % Gain/(Loss), % Annualized all reflect USD$ values are converted to CAD$.
Returns include foreign exchange gains/losses
Current notes: None.
Other notes: Keep in mind all investors are different. This portfolio is designed as a guide in setting up your own personal portfolio. Unique considerations and
adjustments need to be made to reflect your personal situation. Please perform your own due diligence before making investment decisions. For use by Canadian
MoneySaver subscribers only.
Analysts do not own a financial or other interest in any of the above securities. Past performance is not an indicator of future performance.
Not for redistribution. Please direct portfolio questions to moneyinfo@canadianmoneysaver.ca.

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 5

 Women and Money

Women And Money

In 2024
Rita Silvan

“Y
ou've come a long way, Baby!" was as more women become financially influential. Numerous
the ad slogan for Virginia Slims, the research shows that the average woman has different
Philip Morris' cigarette brand marketed attitudes, values, and behaviours regarding money than
exclusively for women. The campaign cleverly exploited the average man. (We can debate how much of this is
the 1960s civil rights movement. (Congratulations ladies, nature versus nurture.)
you're liberated. Now go buy some smokes.) Financial
independence may not have been what Philip Morris had Different Financial Goals: Security
in mind, but during the past six decades, women have Over Prosperity
indeed come a long way.
Twice as many women as men say they seek financial
Canadian women will control $4 trillion in assets by security over prosperity. In a study by U.S. Trust, only
2028, nearly double the current 62% of high-net-worth women
amount of $2.2 trillion. (In said they felt financially secure
the U.S., McKinsey pegs the
"My mom said to me, 'You know, compared to 76% of high-net-
worth men. Women's greater
generational wealth transfer to sweetheart, one day you should
women at $68 trillion by 2030.) focus on financial security affects
Despite the persistent wage gap settle down and marry a rich man.' how they save and invest. Despite
earning less than men, women
where the average Canadian And I said, 'Mom, I am a rich man.'" have higher saving rates and are
woman earns 89% of a man's more likely to participate in a
wage, women's growing wealth - Cher workplace retirement savings
comes from a group of factors: plan. Financial advisors report
higher average wages, more senior their female clients are more likely
roles, greater workforce participation, higher levels to factor family and friends in their budgets and invest
of entrepreneurship, and being the beneficiaries of the remainder, whereas male clients are more likely to
inheritances. One of the big cultural trends in 2023 do the opposite.
is young women being more educated than their male
A 2021 Women and Investing study by Fidelity found
cohorts. Fewer men are enrolling in college and university, that women do a lot of things right when it comes to
especially in advanced four-year degree programs. This investing. They are more likely to take a holistic approach
has led women to close the wage gap with men in some to building wealth that is based on their values and goals
jobs and geographical areas. and then select investments and strategies that are in
alignment with those. Among high-net-worth women,
For the first time in recorded history, women control a poll by a private bankers association found that clients
significant wealth. A lot of that money currently is or expected their banks to create sustainable and innovative
will be invested via financial advisors or through family investment recommendations, take a holistic approach to
offices. Since the start, the investment industry has been asset management, and provide advice on how to structure
built by men for male clients. This will necessarily change their wealth along with market intelligence and thought

6 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

leadership. Advisors will need to step up their game to
provide a more holistic approach to managing money for
Starting Sooner
their female clients, one that includes financial planning, The good news is women are starting to invest earlier.
budgeting, and goal-setting, not just performance returns Younger women between the ages of 18 to 35 begin
against a benchmark. investing at an average age of 21 compared to women
over 36, who begin at age 30, on average. One regret
Perfectionism And Fear that older women report is not starting to invest earlier
in life to take advantage of the power of compounding.
While there are always exceptions, research shows Starting later puts more pressure on women to catch up
women are perfectionists who tend to overprepare and or to take more risks than they are comfortable with to
overdeliver at work. This may result from the belief that build a sustainable retirement income. Younger women
women need to be twice as good as men to get ahead are listening to their elders and taking control of their
and that should they fail at a task, they may not get financial destinies earlier.
a second chance or "fail upwards" into a promotion.
Studies confirm women's performance is scrutinized more
carefully. One recent study reported in Harvard Business Iconic Women On Money
Review found that men receive significantly higher ratings
in performance reviews when the grade is based on a
■ "I don't pretend to be some maven, like the guy
10-point scale. However, there is no gender difference
in Barron's last week who can analyze all the
in ratings when the scale is switched to a 6-point scale.
companies and so forth."
The reasoning for this discrepancy is a "10-out-of-10" is
considered the "best of the best" and gender bias prevents - Barbra Streisand, who installed a real-time stock
managers from giving this ranking to a woman. On the quote service in her home.
other hand, a "6-out-of-6" is merely "very good". ■ We all hope for capital gains, but the only thing
Perfectionism can be seen as having high standards, but we can really count on is the dividend."
it is also a symptom of fear of making a mistake. Women -Geraldine Weiss, legendary investor and editor.
investors are more risk-aware than men. This usually
■ "My mom said to me, 'You know, sweetheart, one
works to women's advantage as studies show female
day you should settle down and marry a rich man.'
investors—both retail and professional— consistently
And I said, 'Mom, I am a rich man.'"
outperform men by an average of 40 basis points. This
small amount of alpha compounds, over the long term, - Cher
into a meaningful gain. The superior performance is ■ "People say that money is not the key to happiness.
attributed mainly to lower levels of trading activity. Data But I figure if you have enough money, you can
from 37,000 U.S. households showed that men's trading have a key made."
frequency is almost double that of women; single men
trade even more frequently at nearly 70% more often - Joan Rivers
than women. ■ "Power is not given to you. You have to take it."
However, perfectionism's dark side is the belief that - Beyoncé
you need to know everything about markets and investing
before jumping in. Fear of making a mistake is often cited
Rita Silvan, CIM is a finance journalist specializing in
by women as a reason for not investing. In a 2023 Fidelity women and investing. She is the former editor-in-chief of
survey, women delineated five major barriers to investing. ELLE Canada and Golden Girl Finance. Rita produces
The biggest ones were "Fear of Risk" (62%) and "Lack content for leading financial institutions and wealth advisors
of Knowledge" (48%); a lack of trust in the investment and has appeared on BNN Bloomberg, CBC Newsworld, and
products and providers garnered nearly 50% each. Only other media outlets. She can be reached at rita@ellesworth.ca.
30% said were not interested in investing. Studies show
that when women understand the risk/reward profiles
of the investments and strategies, they are as willing to
take on risk as men.

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 7

 Women Investors

Top Female Investors’ Top

Tips For Business Success
Barbara Stewart

What Advice Do Some Top Female foreign securities trading, derivatives activity, and
research/investment advice.
Investors Have For The Rest Of Us?
What is my secret to success? Over time I have learned
Last year, I interviewed 50 accomplished people from that when people say “no” it isn’t always about me. There
around the world for my research paper, What’s in your are many reasons that could have nothing to do with me.
investment portfolio?, to be released on International I invented what I call “The Bat System.” Did you know
Women’s Day, 8 March 2024. Some of the women I spoke that bats can make up to 160 acoustic pings per second as
with are professional investors, and each has had a very they close in on their prey? If I want something I might
different career and life journey. I’ll share the top tips for come to you ten different times and sometimes I’ll end
business success from five female investors: up getting what I want. Also, I know that if I smile and
I’m in a good mood you’ll be more inclined to give me
Tip #1: Just do it: solve the problem what I want.”
“In my 10 years as a private banker, I met so many Hanna Pri-Zan, Chairperson of Israel Experience
entrepreneurs and I thought if they can do it…then I can (Formerly Chairperson of the Board at Peilim Portfolio
do it! I put all my money and all my passion into Lucy Management, a member of the Bank Hapoalim Group),
Global Fund: a global equity fund with a main focus Tel Aviv, Israel
on companies in lifestyle, health and beauty as well as
companies with well-known and attractive brands. Tip #3: Speak strategically: wait for the
pause
I am very proud that Lucy Global Fund is now on
nine different platforms in Sweden. So many people told “My father built his own real estate brokerage from
me not to start a fund but when people say no it triggers the ground up and my main lessons in business came
me. I’m really stubborn and I want to show them. I don’t from overhearing him talking to his clients on our
listen, I just do it: I solve the problem.” landline phone in the kitchen. Every evening we had to
Therese Nyren, Founder, keep quiet while he had his calls and during this time I
Lucy Global Fund, Stockholm, Sweden learned (through osmosis) about money and deal-making.
Because of this dad likes to take credit for my success!
Tip #2: When people say “no” it isn’t In retrospect, I feel grateful for having grown up in a
always about you loud Italian family. My dad was a big talker! I learned how
“After my time serving in the Israeli army as a Welfare to be strategic and say things that would pierce through
Officer, I did my Bachelor of Arts in economics and the noise and get everyone’s attention. This served me well
statistics at The Hebrew University of Jerusalem. I spent starting out in the business as a junior—I learned to ‘wait
the majority of my career at Bank Hapoalim: I started for the pause’ and speak strategically. My skills learned at
as a clerk and ended up on the Board of Management. the dining room table have translated well into business.”
From my start in 1972, I held several positions with Lisa Melchior, Founder and Managing Partner,
responsibility for securities research and advice including VERTU Capital, Toronto, Canada

8 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

Tip #4: Always think of both sides in a While working as a portfolio manager, I had one of
my worst-ever meetings with a potential client in 2010.
negotiation The meeting was in an over-air-conditioned office, I was
“My grandfather had a great influence on me: he came very cold, and tens of millions of dollars in assets were up
from a simple family but was super ambitious. He rose for grabs. Though I put in a lot of effort, this particular
through the leadership ranks in the nuclear industry meeting went so poorly that I felt compelled to figure
and eventually became CEO in a government job. Early out where I had gone so wrong. As a former Xerox sales
on I was recognized as a gifted kid and my grandfather rep, I know how to sell, and as a CFA charter holder, I
strongly suggested that I invest in two things: education know about finance, but some other factor derailed this
and health. meeting.

I have a long list of accomplishments but none of them A friend suggested that it might be body language, so
would have ever happened without my grandfather’s I booked some time with global body language expert
support and guidance. I thought of him for inspiration Mark Bowden. He had good insights that I started using
every time I embarked on a new educational challenge, to great effect.
and with gratitude every time I completed a program.
What does “I am trustworthy” body language look like?
“Always think of both sides in a negotiation,” he would
say. “What will the other side get out of the partnership? Openness. Maximize your body. A prospective client
This is how you will both be successful.” wants to see that their advisor is confident and in control.
Jenny Alfandary, Corporate Director, President and CEO, They are coming to you for help. Our brains equate
Toronto, Canada “bigger” with “more powerful,” so set up an environment
where you can display more of your body.
Tip #5: Stay invested
Take up space. For example, during the meeting take
“I studied finance in university because it seemed to the cup of coffee that is on your right and place it a full
me that finance is the bloodstream of the economy: it arms-length away from you. This way they can see your
is massive and affects and connects every single person entire arm.
and every single industry. After completing my MA in
I can tell you that my business success improved
international business at HAN University of Applied
immeasurably once I became more “open” and I started
Sciences in the Netherlands, I went on to do my master’s
to “maximize.” And critically: don’t sit in an over-air-
in finance at London Business School where I took a
conditioned boardroom looking small and frozen!
specific interest in private wealth management. I spent
the majority of my career working with UHNW (ultra- "Barbara Stewart is a Chartered Financial Analyst
high-net-worth) clients. (CFA) with 30 years of investment industry experience;
five years as a foreign currency trader, more than two
Based on my years of working with UHNW investors decades as a portfolio manager for high-net-worth
through several different crises I am definitely an advocate entrepreneurs, and for the past six years doing interview-
for well-diversified portfolios. I advise people to stay driven research for multiple global financial institutions.
invested no matter what is happening. You need to be Barbara is a keynote speaker for CFA Societies, banks, stock
in the market!” exchanges and industry conferences globally, and she is a columnist
Anna Chalov, Co-Founder, Bemuse Ltd (Formerly for CFA Institute and Canadian Money Saver magazine. She
is on the Advisory Board of Kensington Capital Partners and
Director of Tamsel (UK) Limited – a family office),
also is the Ambassador for the Kensington Women’s Forum.
London, England Fourteen years ago, Barbara saw a need to challenge outdated
financial industry stereotypes and share positive messages
Bonus Tip: Be mindful of your body about women and money. Today, Barbara is recognized
language worldwide as one of the leading researchers in women and
finance. Rich Thinking® global research papers quote smart
As a female professional investor with 33 years in women and men of all ages, professions and countries and are
the industry, I’ll weigh in with my own best advice for released annually on International Women’s Day, March 8.
business success. Cultivate “I am trustworthy” body To find out more about Barbara’s research, visit
language. www.barbarastewart.ca."

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 9

 Financial Literacy

Time To Clean Up
Your Finances
Janet Gray

E
arly in the new year is often the time that the coverage occurs (overdraft), and for others, you pay
we want/need to refresh and rejuvenate a monthly fee, either a set amount or based on your
many parts of our lives. It’s a time to outstanding balance (mortgage or credit card). Examine
update and make things enjoyable again your cash flow—this may be an unneeded expense.
after a long winter. We do it with our homes, our
gardens, our clothing—but what about our finances? Investments
There are always pesky details and often unnecessary Do you know what you pay in investment account
costs around our finances that we think we will get to fees? Have a frank discussion with your investment
someday. Focus on the simplicity and ease of mind by advisor about your upfront fees (with new funds to
your investments) and the ongoing costs (of existing
dealing with those minor but pain in the rear tasks.
investments). Sometimes a lower
Some have an obvious cost now,
fee can appear to save you money,
while some will have a longer-
but the service options and level of
term disadvantage; either can be This year, pay attention advice could be less than what you
a nuisance. need. Make sure you are paying
to the smaller details that reasonable fees for what you need.
Banking Is there a discount offered if your
could have a large total cost. other family members are with the
Look at your bank usage
same investment firm?
(mostly e-deposits and auto- Your wallet will thank you...
withdrawals these days). Some Do you have multiple accounts
accounts offer an infinite number at several institutions, such as
of e-transactions within your a leftover group of Registered
monthly fee, or if you maintain a minimum account Retirement Savings Plans (RRSP) at one investment
balance. Other accounts offer a fixed number of firm but your other investments are held at another? The
transactions and then charge you a fee for each subsequent nuisance is that you are receiving 2 separate statements
transaction. and maybe separate tax slips. You are paying 2 sets of fees;
sometimes by combining accounts, your fees could be
When was the last time you reviewed your bank decreased due to the higher total assets now held at a single
account fees or the type of account you have? Often a free/ institution. You would then deal with one investment
low fee chequing (or even just a savings account) account advisor who knows your entire portfolio rather than
can work instead of a fee-based chequing account. Many having different advice from multiple advisors on different
banks offer lower fees if you are a student or a senior. parts of your investment portfolio. Of course, you should
Some banks will do this automatically after you reach a do your due diligence to find the best fit for you in terms
certain age; sometimes you have to ask. of relationship, accessibility, pro-activeness, and fees.
Bank products could have overdraft coverage or balance Are you part of a group investment plan with your
protection insurance. The fees are sometimes charged as employer? Some group plans may allow you to move your

10 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

individual investments to them so you can take advantage is sometimes slightly higher, you will not incur any late
of the group discounted rate on fees. fees or totally miss the deadline and potentially disrupt
service. The peace of mind gained is priceless.
Insurance
“Spaving”
Review your insurance products regularly. You probably
receive an annual renewal notice, which is a great time to When you spend more to “save”. You purchase the
review if that product still meets your current needs and premium package so you don’t have to pay shipping,
wallet. Use this opportunity to contact your insurance or you buy another item to meet the free shipping
provider and discuss this with them. Insurance products transaction minimum. Pay attention to fees and know
and costs change and there may be a better option for your spending limits.
you on your life, disability, car, home or other policies.
Groceries
Taxes
Prices have increased no matter where you live in
Speak with a tax professional/accountant to ensure you Canada. There is no denying that it’s costing us more
are getting all the tax deductions (reduce your taxable on even our food basics. We all know that “convenience
income) and tax credits (reduce your income tax payable) is costly”, not just ready-to-eat products and meal
suitable for your situation. If there are unclaimed items replacements, but the more manufactured any product
on previous years’ tax returns, see if it’s worthwhile to re- is, the more expensive it is. We pay for someone else’s
file for that tax year and be re-appraised for a (potential) time at a higher grocery cost. If we can do most/all of the
refund. preparation work ourselves, it lowers the price.

Beneficiaries Lists are an essential tool for lowering the grocery bill.
Plan your meals in advance of shopping. Use a grocery
Regularly review your investment holdings such app that shows you the savings at all major chains in your
as registered accounts (RRSP, Tax-Free Savings local area, shop the front page for the best deals and build
Account(TFSA), Locked-in Retirement Account (LIRA), your weekly menu plan around that. Buy extras of your
insurance policies (group and personal), and group favourites when they are on sale. Go to the manufacturers’
benefits that allow for beneficiary designations to see if websites to get additional savings coupons, which are
changes or updates are needed. Ensure they are all current often also available on a coupon board in front of many
and valid. There could be tax consequences, cash flow stores. Buy in bulk quantities with a family member/
impacts or disgruntled family members if these details friend. Also, it’s true: don’t shop when you are hungry.
are incorrect.
This year, pay attention to the smaller details that could
have a large total cost. Your wallet will thank you and it
Subscriptions And Streaming frees up non-productive funds to use elsewhere which is
Services more gratifying.

Carefully review your credit card and bank statements

for ongoing fees, especially for items you no longer need/ Janet Gray, CFP, Advice-only Financial Planner with Money
use. Sometimes the fees auto-renew and then you are Coaches Canada.
into another cycle because you forgot to cancel before janet@moneycoachescanada.ca.
the renewal date.

Or you missed the renewal date and must pay a

penalty for late payment. Make sure to note renewal and
cancellation dates in your calendar. Take notes of the date,
time and transaction number or who you spoke to. It’s
important info if you need to follow up again.

Rather than paying an annual fee, consider changing

to monthly automatic payments via bank debit/credit
card. This also applies to home utilities. Although the cost

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 11

 Investing

FEES

Danielle Neziol

C
anadians are facing a lot of sticker shock Ratio (MER) is the bottom-line cost to the investor. It
lately. My grocery bill was how much? My includes any taxes charged to the fund, as well as any
mortgage payment is going to increase by added fees (such as leverage). An investor can look up the
what percent? Don’t even ask me what it management fee and MER within the Fund Facts and
costs to fill up my car these days. With more money ETF Facts of their funds. These are regulatory documents
going to living expenses, it has become harder to that can be found for every fund issued in Canada. Some
save than ever. One simple way to get ahead is to be asset managers advertise very low management fees but
more aware of what we are spending- especially in
have higher, less advertised, MERs, so investors should
times like these- and to review our monthly expenses
always do their due diligence on the total fund cost to
to see where there are opportunities to make cuts.
fully understand the bottom-line payment that they are
Our investment portfolios should be viewed no making every year.
different. If you are an investor who holds a mutual
fund or an exchange traded fund (ETF) there are fees The MER is subtracted from daily returns. Therefore,
attached to your investments. It would be prudent to it has a direct impact on the total return of the fund. And
review the cost structure of the funds you hold to ensure as investors we know that overtime, our total returns help
that the fees make sense relative to the fund’s investment build our overall wealth. Therefore, the lower the fee on
mandate. It would also be wise to review the cost of the the investment, the more money there will be for the
funds you hold to see if that fee is competitive relative investor at the end of their investment period.
to similar products in the
market. Fees detract from Example of an ETF Facts Document:
total portfolio returns, so
anything an investor can
do to manage these costs
can help keep more money
in their pockets.

Management
Fees And MERs
Ev e r y i n v e s t m e n t
fund has a management
fee. This is the cost a
fund manager charges
to manage the portfolio
operationally (buy and sell
securities, rebalance, etc).
The Management Expense

12 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

Comparing Fees at predetermined equity and fixed income weights. As
markets move, the weights of holdings change (when
Once an investor is aware of the fees they are paying markets go up equities take up a larger weight than fixed
for their investment products, they have the ability to income and when markets go down fixed income becomes
“shop around” to see if there are any products that may overweight). With asset allocation ETFs, rebalancing is
be a better fit in their portfolios or which offer lower fees. done automatically, which means less trading and less
When comparing fees it’s important to understand what commissions for the end investor.
you’re getting for in return for what you’re paying for.
Broad market index funds generally have the lowest fees Fees In Canada, Trending Down
in the market. For example the BMO S&P 500 Index
With inflation pushing costs of most goods and
ETF (ZSP) has an MER of 0.09%. Index funds tend
to have the lowest fees because operationally they are services up it’s nice to know that the fees on investment
easier to manage. A Portfolio Manager will go out and products are not impacted by inflationary pressures
buy the stocks within a particular index, and rebalance (thank goodness!). One of the great benefits of ETFs
when needed.1 is that their low-cost fee structure put pressure on the
Canadian fund industry to lower overall fees. The added
Actively managed funds can come with higher competition helped bring down the average fund fee
price tags. This is because an active manager has more in Canada as many fund managers decided to reprice
overhead- research teams, technology resources, data their products to compete with lower fee investments.
needs, intellectual expertise- costs which all add up. ETFs listed in Canada have an asset-weighted average
Active managers seek to provide “alpha” which means expense ratio of 0.30%, representing all index and active
outperformance versus the broad market. This is the strategies.2 Most broad market index ETFs are priced in
value they seek to provide for the higher fee they charge. the 0.10%-0.20% MER range while most active ETF
Therefore, for higher fee active products, investors should strategies are priced in the 0.75%-0.90% MER range.3
do their due diligence- is the active manager providing But there are still funds out there charging 1-2% per year,
performance beyond the fee hurdle and the broad market?
and sometimes even higher. On a $100,000 investment,
Is this performance consistent?
a two per cent MER represents a $2,000 cost every year.
We have seen a boom of income focused ETFs in Over many years, this can really add up, especially when
the past few years which use options strategies. Options we consider compounding returns. Therefore, investors
overlays are more work from an investment management must do their due diligence to see what fees they are
perspective, and therefore may be associated with higher paying and if those fees make sense to them.
fees relative to a broad-based index fund. For example,
BMO’s covered call ETFs all have MERs of 0.75%, which So, as we review our annual expenses this year,
reflects the management of the underlying stock portfolio Canadian investors should not ignore a review of the
plus the options portfolio of the ETF. Many options- expenses associated with their investment portfolios.
based ETFs also incorporate leverage which can be costly There could be opportunities here to cut back on fees,
(which is only captured in MER, not management fee), which will provide more savings at the end of the day.
therefore for investors looking at these types of funds
they should research MERs and understand what they
are actually paying for.
Danielle Neziol, Vice President ETF Online Distribution,
Trading Fees BMO ETFs, has spent the last six years helping to drive
the ETF product development and strategy at BMO ETFs
Investors also must consider direct costs to buying by engaging stock exchanges, capital markets desks, index
and selling ETFs. There is sometimes a commission providers, and portfolio managers to bring new ETFs to
to buy and sell, however this varies among trading market. More recently, Ms. Neziol is focusing most of her time
platforms. For investors who want to reduce the amount with both investors and professionals to provide ETF insights
of trading they do annually and keep commission costs and education. She has also been a guest speaker and panelist
low, asset allocation ETFs can help eliminate trading for both public and industry events, hosts the weekly webinar
expense. Asset allocation ETFs hold a basket of globally ETF Market Insights, and has a podcast which delivers ETF
diversified fixed income and equity ETFs, and are set education to DIY investors. Ms. Neziol has an honors degree

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 13

 from Western University and is a level-three candidate in investment in the BMO ETFs, please see the specific risks set out in
the CFA program. the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in
market value and may trade at a discount to their net asset value, which
1 Note that index investing is subject to tracking error. This is may increase the risk of loss. Distributions are not guaranteed and are
the difference in performance between the index and the fund, subject to change and/or elimination. BMO ETFs are managed by
which can be caused by fees, trade timing and daily market BMO Asset Management Inc., which is an investment fund manager
movement. and a portfolio manager, and a separate legal entity from Bank of
Montreal. BMO Global Asset Management is a brand name under
2 Source: etfgi.com, December 31, 2023.
which BMO Asset Management Inc. and BMO Investments Inc.
3 Source: Morning Star Direct, December 31, 2023. operate. This article is for information purposes. The information
contained herein is not, and should not be construed as, investment,
Commissions, management fees and expenses all may be associated tax or legal advice to any party. Particular investments and/or trading
with investments in exchange traded funds. Please read the ETF Facts strategies should be evaluated relative to the individual’s investment
or prospectus of the BMO ETFs before investing. Exchange traded objectives and professional advice should be obtained with respect
funds are not guaranteed, their values change frequently and past to any circumstance. ®/™Registered trademarks/trademark of Bank of
performance may not be repeated. For a summary of the risks of an Montreal, used under licence.

– MoneySaver Podcast –

Women And Investing

PART I (Originally published October 2021)

In this episode of the MoneySaver Podcast, Ellen Roseman,

Rita Sylvan, Barbara Stewart, Paulette Filion and Judy
Paradis discuss the need for women to finance their
longer lifespans, the problems women have finding a
financial advisor they can trust and the types of products
and services that suit women investors, are women risk
adverse or risk aware, confidence - perception that they
don't have enough money even if they do, the financial
realities of being a woman among other topics.

Tune in with us today!

All episodes are free to
download and stream.
Hear them all at the link below!
https://www.canadianmoneysaver.ca/TheMoneySaverPodcast

14 | Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024

 International Women's Day

International
Women’s Day 2024:
Inspiring Inclusion In Finance
Lana Sanichar

I Maggie Lena Walker (1864-1934)

n the ever-evolving landscape of finance, women
have long been catalysts for change, pushing
boundaries and leading us forward to more Maggie Lena Walker was an African American
equality, equity and inclusion. In celebration businesswoman, born and raised in Virginia, USA. She
of International Women’s Day 2024, we’re looking at became the first woman to charter a bank in the United
some of the remarkable contributions made by (mostly) States when she founded in 1903, the St. Luke Penny
Canadian women in the world of finance. Savings Bank in Richmond, Virginia. She also served as
the bank’s first president and worked tirelessly to improve
From the trailblazers of the past who pushed the
the financial literacy of the African American community,
boundaries of women's role in society, to contemporary
in particular.
leaders driving innovation and inclusion, there is no
shortage of inspiration to draw from as we move forward. Her legacy extends beyond banking, as she eventually
became a prominent figure advocating for civil rights,
The Origins of International education and social justice within Richmond.
Women's Day
Muriel Faye Siebert (1928-2013)
International Women's Day (IWD) can be traced back
to the labour movements of the early 20th century. It Known to many as the “first woman of finance”,
emerged from the progress of activists in North America Muriel “Mickie” Siebert became the first woman to hold
and Europe and reflected a growing call for women’s equal a seat on the New York Stock Exchange (NYSE) in 1967,
participation in society. sharing the floor with over 1,000 male colleagues. She
faced significant gender discrimination as she pursued
The first-ever International Women's Day took her career in finance, at a time when female stockbrokers
place on March 19, 1911, and was observed in Austria, were completely unheard of.
Denmark, Germany, and Switzerland. On that historic
day, over a million women and men attended public Two years after establishing her seat on the NYSE, she
events to show their support for, and celebration of, opened her own brokerage firm, becoming the first to
women. Eventually, IWD began to be observed and offer discounted investment opportunities to individual
celebrated in nations across the globe, and in 1975, investors. Muriel’s accomplishments were not only in
the United Nations recognized and began celebrating breaking gender barriers but also in fostering financial
International Women's Day on March 8th. education and inclusivity. She was a strong advocate for
financial literacy and worked to increase opportunities
Inspirations from the Past for women in finance.

Naturally, we look to the past for those rare, shining Louise McKinney (1868–1931)
examples of courage and determination. Across the U.S.
and in Canada, too, there were women who pioneered Louise McKinney was a Canadian politician and
the way to greater inclusion in business, finance and women's rights activist. In 1917, she became one of the
society at large. first two women elected to the Alberta Legislature. While

Canadian MoneySaver | https://www.canadianmoneysaver.ca | MARCH/APRIL 2024 | 15