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Frequently Asked Questions

Here is a collection of our most frequently asked questions.  If you don't find your question, please reach out to us on your favourite social platform.  Our social links can be found here.

Questions about Evermore Retirement ETFs

How do I invest?

Evermore Retirement ETFs are available across Canada through all direct investing accounts at the major banks across Canada, independent discount brokerages, and also available through IIROC licensed financial advisors. 

What is a Target Date Fund?

A Target Date fund, like the Evermore Retirement ETFs, are funds that are designed to move from a growth strategy to a preservation strategy from inception through the stated “target date” of the fund. Target Date funds are the preferred structures for sponsored group RSP plans due to their general suitability, simplicity, and efficiency for the investor. Evermore Retirement ETFs are the very first Target Date ETFs in Canada.  For more information about Target Date Funds, click here.

What do the Retirement ETFs invest in?

The Evermore Retirement ETFs invest in a basket of liquid and low cost index based ETFs across global equities and fixed income, from some of the world’s largest and most trusted financial companies. For more information on the underlying holdings of the Evermore Retirement ETFs, click here.

When do the funds rebalance?

Evermore Retirement ETFs rebalance to our target allocations at month-end if the allocations have deviated from our targets by more than 1 percentage point. However, if the funds deviate from targets by more than 1.5 percentage points at any time, we would rebalance.

What happens at the target date?

The “target date” of the Evermore Retirement ETFs refers to the year of expected retirement and is the anchor point of our “glide path”. Investors don’t need to take any special action around this date. The fund continues to operate in accordance with its objectives. Starting in the target year, the fund will be adjusting its asset allocation for five more years as the fund moves towards an allocation of 45% equities and 55% fixed income. The fund will then stay at that level for the remainder of its existence.

Which Retirement ETF is right for me?

Evermore Retirement ETFs are built to make investing for retirement as easy as possible and your time horizon is one of the most important elements in sensible, goal based investing. Evermore Retirement ETFs are designed to align closest to the year you expect to retire. For example, if you expect to retire around the year 2040, the Evermore Retirement 2040 ETF has been optimized for that time horizon.  To see the available Retirement ETFs click here.

What is a Glide Path?

The “Glide Path” refers to the changing asset allocation of Target Date Funds over time. At Evermore, we have built the Glide Path for the Retirement ETFs based on mathematical analysis of asset classes and their correlations, performance, and volatility over several time horizons, with the aim of optimizing the risk-adjusted returns of our portfolios. Although this sounds technical, the goal is to provide investors with optimal risk-adjusted returns, in other words the highest attainable return, with the acceptable level of investment risk given the investment time horizon. 

What are the fees?

The management fees for the Evermore Retirement ETFs are 0.35%. The other investment costs in the fund are the fees of the underlying ETFs, administrative costs and HST. 

Do the funds pay distributions?

Yes. The Evermore Retirement ETFs pay out distributions. Before a Retirement ETF reaches its target date, the fund will pay distributions quarterly. Once the fund reaches its target date, distributions will be paid monthly.

Do you have a Dividend Re-investment Plan (DRIP)?

At this time, we don’t have an official DRIP program. Please check with your direct investing account provider or advisor to see if they can accommodate your request.

Questions about ETF investing

What are ETFs?

ETF stands for Exchange Traded Fund. An ETF is a mutual fund that is bought and sold by investors through an exchange. Evermore Retirement ETFs are listed on the NEO Exchange. 

Do ETFs have lower fees than mutual funds?

Although ETFs do not necessarily have lower fees than non-exchange traded mutual funds, on average ETF fees are lower because a larger percentage of ETFs follow lower cost index-based investment mandates.

Do ETFs pay dividends?

ETFs pay distributions that are comprised of capital gains, dividends, and interest earned from the underlying holdings. 

Are ETFs and mutual funds the same thing?

ETFs and mutual funds are fundamentally the same thing, investors pool their money together and a portfolio manager invests that money in accordance with the fund’s mandate.  The two key differences are: 1) ETFs are bought and sold via an exchange, mutual funds are purchased or redeemed via the fund company directly, and 2) mutual funds are available in fractional units.

Can I hold ETFs in my RRSP or TFSA?

Yes! ETFs are eligible investments for both RRSP and TFSA accounts. 

Are ETFs the same as index funds?

The term “index fund” refers to an investment fund that invests in a basket of underlying securities intended to mirror a particular index, such as the S&P 500 Index. An ETF (Exchange Traded Fund) isn’t necessarily an index fund, although many are.

Questions about investing

What is an RRSP?

RRSP is short for Registered Retirement Savings Plan. It is a special type of investing account that you can open through your bank or other financial institution and is registered with the Canadian government. Whenever you earn income, you earn the ability to contribute to an RRSP account and grow your investments tax-free with the aim of growing your investments for future withdrawal during retirement. You can hold a variety of investments in an RRSP. 

How do I open a direct investing account?

You can open a direct investing account with your bank or other financial institution or discount brokerage right online. If you are more comfortable with in-person assistance, the staff at your local branch should be happy to help.

Do I need a financial advisor?

We designed the Evermore Retirement ETFs to empower Canadians to take control of their own retirement investments. Within a single ETF your asset allocation is aligned with your retirement timeline. However, if you have special requirements to build out a family budget, coaching to stick with that budget, special tax or estate planning, or other unique needs, there are fee for service financial professionals who can provide guidance and help set you up with a plan. 

What is a TFSA?

TFSA stands for Tax Free Savings Account. Starting at the age of 18, Canadians can make annual contributions to a TFSA and grow their investments tax free. Unlike RRSPs there are no tax rebates based on your contributions and as a result, withdrawals are not subject to any tax. You can invest in a variety of things in your TFSA. 

What is Index Investing?

Index Investing means you are not trying to make individual investment selections, instead, you are investing your money in a product that mirrors the performance of the market as a whole.

What is a Non-Registered Account?

The term “non-registered” account is typically used to define an investment account that is not registered with the federal government, where returns are taxed as they a realized in the account. Cash accounts and margin accounts (where you borrow to invest) are examples of non-registered accounts. The Evermore Retirement ETFs are optimized for your retirement within RRSPs and TFSAs.

Have more questions?