Looking for Low MER stocks provided to be quite a challenge for a new investor. Fortunately, I have been able to find a filter that works. Using www.morningstar.ca, I click on the ETFs tab. Under tools, which will be in the middle column, there is a link called US ETF Screener. From there, one can add the Expense Ratio filter.
The Globe and Mail at http://globefunddb.theglobeandmail.com/gishome/plsql/gis.fund_filter?pi_type=B allows one to find zero MER and no load mutual funds. Although, I question if they really are no fee mutual funds. In any case, the import information needed is to choose Load Type as no load and MER: as <= 0.5%.
From there, click on the get results button.
On the next screen, one will need to click on the key facts tab. From there, click on the MER % column. This may need to be clicked on twice. The first time will be in descending order while the second time will be in ascending order.
The funds now should list from lowest MER % to highest and the lowest will be 0% MER.
Unfortunately, I am unsure how to invest in these mutual funds. It seems that many brokers do not offer these for purchase. Furthermore, I question what is keeping the fund manager happy. Could the fund manager of a 0% MER be getting kickbacks for purchasing stocks from ABC company?
Before buying funds with 0% MER, one has to question if one will get what one pays for. In other words, a fund manager who puts 0% effort into the fund. Something has to be paid out to the fund manager, otherwise he/she may leave the fund as it is.
http://wheredoesallmymoneygo.com/free-investment-management/ is an answer to the 0% MER question as well as http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/ishares-not-as-transparent-as-they-used-to-be/article1645363/ and http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/low-fees-mutual-funds-dont-mimic-etfs-rivalry/article1709247/
There are probably other tools that can be used, but I have not been able to find any yet.
It seems that setting the Rank funds by Management Expense Ratio, putting the funds in Ascending order and show me 50 funds did the trick. Unfortunately, one will have to figure out which one allows for a small investment. There are many that require a minimum investment of $10,000 or more. Furthermore, one may have to fiddle with the other options to reduce the number of funds since any funds over the first 50 shown will be cut off.
Unfortunately, there is no list of 0% MER and no load mutual funds that I can find.