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Discussion Starter #1 (Edited)
I have been studying the performance results for some ETF's for the period ending October 31.

In the bond category, the Claymore High Yield offering seems to have been the top performer outpacing the PH&N High Yield Bond Fund which I am also watching. The Claymore version has a 6 month return of 7.19% compared with 5.38% for the PH&N fund.

The other bond fund that has been performing well is the iShares Real Return Bond Fund (XRB) with a 6 month return of 7.94% and a one year return of 12.60%.

For the Canadian equity category, the iShares CDN SmallCap ETF (XCS) has been the top performer with a one year return of 35.77% compared with the iShares CDN LargeCap 60 ETF's (XIU) one year return of 15.21% and the iShares CDN Composite ETF's (XIC) one year return of 19.11%. The iShares CDN Value ETF (XCV) has a one year return of 18.41%.

Instead of holding the XIU, I have split my Canadian equity holdings evenly between the XCS and the XCV. Smallcaps and Value stocks generally outperform over the longer terms.

A top performing managed fund in the Canadian equity category is the RBC O'Shaughnessy All-Canadian Equity Fund with a one year return of 29.56%.

In the emerging markets category, the iShares India Nifty Fifty ETF is out in front with a six month return of 16.88% while the Claymore Emerging Markets ETF leads in the one year period with a return of 22.54% versus 16.37% for it's BRIC ETF.

Six month results are given for new ETF's that have not yet been around for a year.

I will take a look at the U.S. and International equity results and post them tomorrow.

Any thoughts or comments?
 

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Wow sounds like we were both doing the same thing today. Though I didn't study it quite as closely as you did, I did find a couple funds that I want to take a closer look at in the future. It's very odd to me that these types of funds (gold aside) are doing so well, in such poor economic times, when you hear stories of long term unemployment, people losing houses and jobs etc. Seems strange. Could it be the gov't bailout money at play in some fashion?
 

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Discussion Starter #3
There is the economy and then there is the stock market.

These are two different things!!

If you could predict stock market returns based solely on the economy, then it would make market timing that much easier.

Down the road, when the economy starts to improve, you may notice that the stock markets might be going down.

There is nothing to say that they will always move in tandem with one another.
 

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Discussion Starter #4
I just took a look at Canadian ETF's investing in U.S. equities and came to the following conclusions based on this snapshot in time:

I am currently invested in the iShares CDN Russell 2000 ETF (XSU) and the iShares CDN S&P500 ETF (XSP) and, based on my findings, see no advantage to switching to either the BMO or Claymore U.S. equity offerings.

The XSU has a one year return of 24.19% while the XSP returned 14.69% for the same period. This demonstrates that smallcap stocks often perform better particularly early in the recovery period of the economic cycle. Thus, a tilt towards smallcaps in a recovering economy might enhance one's returns.

The RBC O'Shaughnessy U.S. Value Fund D returned 21.82% over the same one year period and beat all U.S. equity ETF's that I monitor other than the XSU. It has continued to outperform over the shorter time frames as well.

Keep in mind that this analysis is taken at a snapshot in time. Down the road, a similar analysis may demonstrate different results. I have found that even three months can often make a difference in what the results show. This would further illustrate why it is often not wise to frequently tweak your portfolio in an effort to chase recent relative performance of individual investments.

Buy, hold, and prosper.:cool:
 

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So by your logic, how often should we tweak our portfolios? I did it 2-3 times this year, which was a record for me. I intend to take a much more active role with this in the future. There are lots of great funds out there and the best ones I've found have been precious metals or various index funds. Of course, this may not be the case a few months from now. I setup a personal fundlist on the globe and mail website, it's fun to monitor that. Super easy and yet so effective.

RBC Global Precious Metals
RBC Canadian Index

I may dabble in some other things on Questrade in the new year, haven't decided yet. Thought it might be fun to play around with $1000 in disposible money and see if I can make it grow by chasing returns. :)
 

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If I didn't want to invest in individual stocks, the GDX on the NYSE and GDXJ have done 33% and 58% respectively. iShares has the equivalent of XGD but it has under-performed at a relatively low 26%. Stocks are going up due to Federal Reserve announcements of explicit inflationary policy, so people are exiting cash to buy goods that have intrinsic value (paper money has no intrinsic value). That's why you see rises in commodity prices - which will hit our shelves pretty soon when we go to Walmart. During quantitative easing, all stocks will do well but eventually it is what will kill us. But better stocks than USD. CAD is nice and resource/commodity backed. I love Canada.
 

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Discussion Starter #8
The 'Fundlist' tool at www.globeinvestor.com is great for comparing results for funds and ETF's over various time periods.

For example, use it to compare the RBC O'Shaunghesy All-Canadian Equity Fund to the RBC Canadian Index Fund. The former has a one year return of 29.56% versus 18.64% for the index fund.

For international equity funds, compare the iShares International ETF (XIN) (under Blackrock in the Fundlist) to the Mackenzie Cundill Recovery Fund. The XIN has a one year return of 7.30% while the Mackenzie fund returned 17.11%.

As for how often one should tweak their portfolio, my reply would be as little as possible and mainly for rebalancing purposes.

Warren Buffett is fond of stating that the average small investor trades far too often for his own good.
 
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