Hello. Me and my wife have recently been getting our finances in order, and are now saving money instead of living paycheck to paycheck. It is very exciting! We have read a few books, with our favorite being the simple path to wealth by JL Collins.
Our question is regarding investing in Index funds in Canada. We are currently set up with questrade, and are going to be buying vanguard index funds (unless advice convinces us otherwise). We are debating between the U.S total market index fund, vs the s&p 500 index fund. They seem to perform similarly, but JL Collins recommends the total stock market index fund. The MER for the total market index fund is 0.16, while the s&p 500 is 0.09. should we just go with the lowest Mer, the s&p 500?
I also read somewhere that the total market index fund has more volatility, but slightly higher reward over the long haul. This is fine for our position (late 20's) investing for the long term. Is it still the better choice even if it has a higher MER?
The international index fund is another option that we can invest in to diversify. It carries an MER of 0.21
Also, Canadian hedged funds or not.. we are confused, it seems to not make a difference either way. Any and all advice is welcomed and appreciated. Thank you