ING Direct has launched a new index-based mutual fund called the Streetwise Fund. It is a diversified balanced fund which incorporates several indexes in its investment strategy.

The new fund offers a balance of equities and bonds across four key indexes. The fund’s MER is 1%.

“Canadians pay the highest fund fees in the world—up to 2.6% or more for the expertise of fund managers, yet history has shown that most active fund managers cannot beat the index,” says Jeroen Smakman, vice-president, mutual Funds, ING Direct. “The Streetwise Fund uses an index-based investment strategy.”

Streetwise tracks the following indexes: S&P/TSX 60 – Canadian Equities, S&P 500 – US Equities, DEX- Canadian Bonds and MSCI EAFE – International Equities.

The Streetwise Fund has a fixed asset allocation with 60% stocks and 40% bonds. The Streetwise Balanced Income Fund has an allocation with 30% stocks and 70% bonds, and the Streetwise Balanced Growth Fund has an allocation of 75% stocks and 25% bonds.

As well, there is a paperless option available for the fund’s application process and initial transaction, which the company says is an industry first for a mutual fund dealer in Canada.