Before today, we were thinking that all Canadian index mutual funds should have the same (or at least similar) return over a couple of years. We are just surprised learning that it is not the case.
There are a couple of Canadian index mutual funds from major institutions in Canada, e.g.:
If we use chart comparison from The Globe and Mail, the chart of those funds in the last 10 year looks like the following:
The chart above assumes that we invest $10,000 in January 2000.
As we can see here, the four funds above have different result. CIBC Canadian Index has the lowest return, i.e. $15,713. Meanwhile, RBC Canadian Index has the highest return, i.e. $16.529.
There is more than 6% difference between the return of CIBC Canadian Index and RBC Canadian Index. We are not really sure why. We are also not sure why the gap between S&P/TSX total return and those funds are quite significant.
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