Canadian Money Forum banner

1 - 7 of 7 Posts

·
Banned
Joined
·
5 Posts
Discussion Starter #1
Just traded in all of my mutual funds and am trying to construct a long-term ETF Portfolio - with once/year re-balancing. Any thoughts are greatly appreciated.
I'm 42 - looking at a 75% equities and 25% fixed income:
Equity Portion: a) Canada - 20% - XIC; b) U.S. - 35% 1/2 large cap IVV (S&P 500)and 1/2 small cap IWM (Russell 2000); c) International - 25% 2/3 EAFE - VEA - and 1/3 EAFE Small Cap - SCZ (U.S. I-shares small cap EAFE); d) Emerging Markets - 20% - VWO
Fixed Income: a) 1/3 - XCB - Canadian I-shares Corp Bonds; b) 2/3 - XBB

** Should I include a REIT in my portfolio? If yes - what percentage of overall portfolio? should I focus on Canada? U.S.? or World?
** I plan on buying almost all of my non-Canadian funds directly through U.S. - either Vanguard or U.S. I-shares.

Sorry for the length but that is what I can come up with after all of my reading.

Thanks in advance.
 

·
Registered
Joined
·
6 Posts
I can't answer your question, though I'm in a similar situation to you (age=38). I'm looking at the following:

RESP split into
TDB909 Canadian Bonds (10%)
TDB900 Canadian Equities (30%)
TDB902 US Equities (30%)
TDB911 International Equities (30%)

As for all other investments, I'm considering the following ETF portfolio.
XSB (25%) short bond
XIC (15%) Can Equity
CDZ (15%) Can dividend
XCS(10%) Can small cap
VEA(15%) Europe pacific
VTI (15%) Us equity
VWO (5%) emerging


cheers, andrew
 

·
Registered
Joined
·
3,423 Posts
RWrubel - my etf portfolio is pretyt similar to that but I don't have any small cap (ie for US equities I just have VTI).

I had some REITs (RioCan) but I just sold it yesterday. In theory, real estate is a good diversifier but I wasn't crazy about the income trust structure plus it's hard to believe that having a very small allocation to an asset class (ie 5%) can make that much of a difference.
 

·
Premium Member
Joined
·
2,686 Posts
Just traded in all of my mutual funds and am trying to construct a long-term ETF Portfolio - with once/year re-balancing. Any thoughts are greatly appreciated.
I'm 42 - looking at a 75% equities and 25% fixed income:
Equity Portion: a) Canada - 20% - XIC; b) U.S. - 35% 1/2 large cap IVV (S&P 500)and 1/2 small cap IWM (Russell 2000); c) International - 25% 2/3 EAFE - VEA - and 1/3 EAFE Small Cap - SCZ (U.S. I-shares small cap EAFE); d) Emerging Markets - 20% - VWO
Fixed Income: a) 1/3 - XCB - Canadian I-shares Corp Bonds; b) 2/3 - XBB

** Should I include a REIT in my portfolio? If yes - what percentage of overall portfolio? should I focus on Canada? U.S.? or World?
** I plan on buying almost all of my non-Canadian funds directly through U.S. - either Vanguard or U.S. I-shares.

Sorry for the length but that is what I can come up with after all of my reading.

Thanks in advance.
Specific portfolio advice for an individual can only be provided by licensed advisors, so I can't comment on the specific questions you are asking.

I can talk about what I personally do however. There are two views on REITs. One has it that REITs provide valuable diversification benefits and that the risk/reward profile of REITs fall between that of bonds and stocks. The other view is that most investors already have equity in their own homes and public companies own a lot of real estate, so a diversified stock portfolio already has enough real estate exposure.

Many of us bloggers have weighed in on this topic and I encourage you to check out the posts and come back with any questions you have.

I personally get exposure to foreign stocks through Vanguard ETFs.
 

·
Registered
Joined
·
127 Posts
A mix of EFT's for a specific individual would have to depend on that persons age, needs , risk tolerance etc.

But I saw an interesting mix of ETF's recently

20% fixed (short and long)

15% each of Cdn equity, US equity, Global equity and Emerging equity

Final 20% in targeted sectors (financials or energy or gold or whatever you think is a good choice at the time)
 

·
Banned
Joined
·
424 Posts
Try taking the Risk Capacity Survey here and see what they come up with for you.

They recommend up to about 10% REITs. Value and small cap stock ETFs or mutual funds should be included because although they are risky, they typically bring higher returns than the overall market. And they recommend including some emerging markets, up to 13% in the riskiest portfolio.

I have or am looking at:
CRQ: Canadian large fundamental (value tilted)
XCS: Canadian small
XMD: Canadian 'Completion' small and mid
CLU: US large fundamental hedged to C$, (value tilted)
CLU.C: US large fundamental, not hedged, (value tilted)
VBR: US small value
XSU: US small hedged to C$
CIE: International large fundamental (value tilted)
ZEM, CWO, VWO: Emerging large
PXH: Emerging large fundamental (value tilted)
VSS: International and Emerging small
 
1 - 7 of 7 Posts
Top