RBC manages over $300 billion in mutual fund assets — more than any other Canadian bank. One Reddit user calculated they were paying close to $20,000/year in RBC mutual fund fees. Here's which RBC funds are actually worth owning.
RBC's most popular fund — RBC Select Balanced Portfolio (RBF460) — charges a 1.89% MER in Series A. On a $200,000 portfolio, that's $3,780/year in fees. The same balanced allocation using ETFs (like XBAL) costs 0.20% MER, or $400/year. You're paying $3,380 extra for the RBC name.
The worst part: RBC Select Portfolios are just funds of funds. They hold other RBC mutual funds. So you're paying a management fee on a fund whose job is to hold other funds that also charge management fees. It's fees on fees.
Series matters enormously. RBC Select Balanced charges 1.89% in Series A (advisor channel), 0.84% in Series F (fee-based advisor), and 0.73% in Series D (discount brokerage). Same fund, same returns — but Series A costs more than double Series D. Check which series you're in.
RBC's index funds aren't as cheap as TD e-Series, but they're far better than the actively managed options.
| Fund | Code | MER (Series A) | MER (Series D) | Tracks | Verdict |
|---|---|---|---|---|---|
| RBC Canadian Index Fund | RBF556 | 0.66% | 0.55% | S&P/TSX Capped Composite | Acceptable |
| RBC U.S. Index Fund | RBF557 | 0.66% | 0.56% | S&P 500 (CAD-hedged) | Acceptable |
| RBC International Index Fund | RBF559 | 0.69% | 0.58% | MSCI EAFE | Acceptable |
| RBC Canadian Bond Index Fund | RBF558 | 0.62% | 0.42% | FTSE Canada Universe Bond | Acceptable |
Honest comparison: RBC's index funds at 0.55-0.58% MER (Series D) are roughly double the cost of TD e-Series (0.28-0.47%). On a $100,000 portfolio over 25 years, that difference costs you roughly $15,000-$20,000 extra. Not catastrophic, but real money. If you're loyal to RBC, use index funds in Series D. If you're flexible, TD e-Series or ETFs are cheaper.
These are the funds RBC advisors push hardest. High MER, mediocre returns.
| Fund | Code | MER (Series A) | 10-Year Return | Annual Fee on $100K | Verdict |
|---|---|---|---|---|---|
| RBC Select Balanced Portfolio | RBF460 | 1.89% | 5.8% | $1,890 | Overpriced |
| RBC Select Conservative Portfolio | RBF459 | 1.83% | 4.1% | $1,830 | Overpriced |
| RBC Select Growth Portfolio | RBF461 | 1.93% | 7.2% | $1,930 | Overpriced |
| RBC Canadian Dividend Fund | RBF265 | 1.72% | 7.5% | $1,720 | Decent fund, bad MER |
| RBC Balanced Fund | RBF272 | 1.86% | 5.5% | $1,860 | Overpriced |
| RBC Global Equity Focus Fund | RBF579 | 2.03% | 10.1% | $2,030 | Good returns, brutal fee |
RBC Canadian Dividend Fund (RBF265) deserves a special mention. It's one of RBC's longest-running funds and has delivered solid returns. But 1.72% MER means a chunk of those returns go to RBC, not you. In Series F (0.74%), it becomes reasonable. In Series A, you're overpaying for a good fund manager.
If you like RBC but hate high MERs, RBC InvestEase is their robo-advisor. It charges a 0.50% management fee on top of ETF MERs (~0.20%), totaling about 0.70% all-in. That's roughly half the cost of RBC's cheapest balanced mutual fund.
InvestEase builds you a portfolio of RBC iShares ETFs, rebalances automatically, and lets you set up automatic contributions. It's the closest thing RBC offers to a "set it and forget it" low-fee solution.
The catch: 0.70% all-in is still more expensive than Wealthsimple (0.40% + ETF MER ≈ 0.60%) or just buying XEQT yourself at 0.20%. But if your RBC loyalty runs deep, it's better than any RBC mutual fund in Series A.
1. Switch to Series D. If you're in Series A, ask about switching to Series D (available through RBC Direct Investing). Same funds, lower MER, because you're not paying a trailer fee to an advisor. This alone can cut your costs by 40-50%.
2. Move to RBC index funds. Stay at RBC but switch from actively managed funds (2%+ MER) to their index funds (0.55-0.66% MER). Better, but still not great compared to other options.
3. Open an RBC Direct Investing account and buy ETFs. You can buy iShares ETFs commission-free through RBC DI. This gets you to 0.20% MER territory while staying in the RBC ecosystem.
4. Leave RBC entirely. Transfer to Questrade or Wealthsimple Trade. Both offer free ETF purchases and lower (or no) account fees. Our switching guide walks you through the RBC transfer process step by step.
Transfer fees: RBC charges $135 per registered account to transfer out. Most receiving brokerages (Questrade, Wealthsimple) will reimburse this fee for transfers over $15,000-$25,000. Don't let the transfer fee stop you — on a $100,000 portfolio, the first-year MER savings alone dwarf the $135 charge.
Plug in your RBC fund's MER and see the 25-year impact in real dollars.
MER Fee Calculator How to SwitchNothing on this site is financial advice. Fund MERs and returns can change. Verify current data on RBC's website or in the Fund Facts document before investing. Some links on this site are affiliate links. Past performance doesn't guarantee future returns.