Scotiabank's mutual fund lineup is arguably the weakest of the Big Five. Their actively managed funds charge typical 2%+ MERs with nothing special to show for it.
But their index funds — if you can find them — are surprisingly cheap. Here's the honest breakdown.
Scotiabank's fund arm (1832 Asset Management, formerly Scotia Asset Management) manages the Scotia and Dynamic fund families. Most Dynamic funds are expensive active funds with 2%+ MERs. But Scotia also has a small set of index funds that fly under the radar.
Your branch advisor will almost never mention these. They pay lower trailer fees, which means smaller commissions. But they exist, and they're your best option if you're staying within Scotiabank's ecosystem.
Low-fee by bank mutual fund standards. Not as cheap as TD e-Series, but far better than Scotia's active funds.
| Fund | Code | MER | What It Tracks | ETF Equivalent | ETF MER |
|---|---|---|---|---|---|
| Scotia Canadian Index Fund | BNS230 | 0.66% | S&P/TSX Composite | XIU / ZCN | 0.06% |
| Scotia U.S. Index Fund | BNS231 | 0.69% | S&P 500 (CAD) | VFV / ZSP | 0.09% |
| Scotia International Index Fund | BNS232 | 0.82% | MSCI EAFE | XEF / ZEA | 0.22% |
| Scotia Canadian Bond Index Fund | BNS233 | 0.62% | FTSE Canada Universe Bond | VAB / ZAG | 0.09% |
Scotia index funds charge roughly 0.62–0.82% MER. That's about 3x what you'd pay for an equivalent ETF, but less than half of what Scotia's active funds charge. For comparison, TD e-Series index funds run 0.22–0.35% MER — significantly cheaper.
If you're at Scotiabank and refuse to open a brokerage account, these index funds are the least-bad option.
The funds your advisor actually recommends. High MERs, mixed results.
| Fund | MER | 10-Year Return | Annual Fee on $100K | Verdict |
|---|---|---|---|---|
| Scotia Canadian Dividend Fund | 2.02% | 6.1% | $2,020 | Use index fund |
| Scotia Canadian Balanced Fund | 2.07% | 4.5% | $2,070 | Mediocre returns |
| Scotia Canadian Growth Fund | 2.15% | 5.3% | $2,150 | Buy XIU instead |
| Scotia Selected Income Fund | 1.73% | 3.8% | $1,730 | Barely beats GICs |
| Scotia Aria Progressive Portfolio | 2.19% | 5.0% | $2,190 | Fund-of-funds tax |
Scotia Selected Income Fund returned 3.8% annualized over 10 years while charging 1.73% MER. A 5-year GIC in 2024 paid 4.5% with zero risk. When your mutual fund can't beat a GIC after fees, something has gone wrong.
Dynamic is 1832 Asset Management's premium active fund brand. They market themselves as "high-conviction active managers" with well-known portfolio managers like Noah Blackstein and David Taylor. Some Dynamic funds have genuinely strong track records.
The problem: you pay dearly for that active management.
| Fund | MER | 10-Year Return | Verdict |
|---|---|---|---|
| Dynamic Power American Growth | 2.48% | 12.1% | Strong returns, brutal MER |
| Dynamic Equity Income | 2.09% | 7.2% | Index would match it |
| Dynamic Canadian Bond Fund | 1.59% | 1.8% | GICs destroy this |
| Dynamic Value Fund of Canada | 2.25% | 5.9% | Overpriced |
Dynamic Power American Growth has genuinely beaten the S&P 500 over long periods — rare for any active fund. But 2.48% MER means you're giving back a huge chunk of that outperformance. In Series F (fee-based advisor), it drops to about 1.25% MER, which is more reasonable for an outperforming active fund.
Know your fund series — it matters here more than most places.
Scotia iTRADE is Scotiabank's discount brokerage. It lets you buy ETFs and stocks — but unlike BMO InvestorLine or TD Direct Investing, it doesn't offer a Series D version of Scotia mutual funds. You're either in Series A (full trailer) at the branch, or you go fully self-directed with ETFs.
iTRADE charges $9.99 per trade, which is steep compared to Wealthsimple ($0) and Questrade ($0 for ETF buys). The platform feels dated. Most Scotia clients looking to go self-directed would be better off transferring to a cheaper brokerage entirely.
Scotia charges $150 per registered account for outgoing transfers. Both Questrade and Wealthsimple reimburse these fees for qualifying accounts (typically $25K+ balance).
Where Scotiabank sits in the Big Five mutual fund landscape.
| Bank | Cheapest Index MF MER | Has Series D? | Has Robo-Advisor? | Best Feature |
|---|---|---|---|---|
| TD | 0.22% (e-Series) | Yes | No | e-Series funds |
| BMO | 0.64% (Series D) | Yes | Yes (SmartFolio) | ETF Portfolio funds |
| RBC | 0.67% (Index) | Yes | Yes (InvestEase) | RBC InvestEase |
| CIBC | 0.65% (Index) | Yes | No | CIBC Investor's Edge |
| Scotia | 0.62% (Index) | No | No | Nothing standout |
Scotia is the only Big Five bank without a robo-advisor and without Series D fund pricing. If you're at Scotiabank and want low-cost investing, your only real options are their index funds (0.62–0.82% MER) or opening an account somewhere else.
1. Switch to Scotia index funds. Call your branch or advisor and request a switch to the Scotia Canadian/U.S./International/Bond Index Funds.
Your advisor won't love this (lower trailer fees), but they can't refuse. Cuts your MER from ~2% to ~0.70%.
2. Open Scotia iTRADE. Go self-directed and buy ETFs like XBAL, VGRO, or individual ETFs.
You'll pay $9.99 per trade but save 1.5%+ in annual fees. On a $100K portfolio, that's $1,500/year saved even after trading costs.
3. Transfer out to Questrade or Wealthsimple. The cleanest break.
$0 ETF purchases, better platforms, lower costs across the board. Scotia charges $150 per registered account to transfer out — but both competitors reimburse this for qualifying accounts.
The honest take on Scotiabank: Among the Big Five, Scotiabank invests the least in making low-cost options accessible to retail investors. No Series D, no robo-advisor, and their index funds are buried.
TD, BMO, and RBC have all made meaningful moves toward lower-cost products. Scotia hasn't. If you bank at Scotiabank, the Scotia index funds are fine — but look into whether switching makes sense for you.
Their index funds are okay. Everything else is overpriced. Scotia is the weakest Big Five bank for DIY investors.
Calculate Your Fee Savings All Low-Fee FundsNothing on this site is financial advice. Fund MERs and returns can change — verify current data on Scotiabank's website or in the Fund Facts document before investing.
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