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After reading this:
http://www.efficientmarket.ca/article/Globally_Efficient_Equity_Portfolio
I’m considering (not very seriously yet) an ETF portfolio comprised of just the following three ETFs with the following weightings:
XWD (MER 0.45%) – 60% or 70%
XEM (MER 0.82%) – 20% or 10%
XBB (MER 0.30%) – 20%
The way I see it is that this portfolio would give me a broad coverage of the entire world market with a minimal portion allocated to bonds. I’m only 30 years old and have a public sector pension awaiting me upon retirement (I hope), so I'm not risk-averse.
With that portfolio, my exposure to the Canadian market would be very small. Is there any real benefit for a Canadian investor to invest strongly in Canada funds or, in the case of an ETF portfolio, something like XIC, XIU, or CRQ?
I’ve chosen XEM (or CWO) as an emerging markets ETF. I believe that I should hold a strong position in emerging markets now and suspect that doing so will provide strong gains in the future.
I’ve chosen XBB as my fixed-income ETF as I believe it provides a broad coverage of Canadian government and corporate bonds rather than focusing on one or the other.
Any comments? Is anyone else doing anything similar?
http://www.efficientmarket.ca/article/Globally_Efficient_Equity_Portfolio
I’m considering (not very seriously yet) an ETF portfolio comprised of just the following three ETFs with the following weightings:
XWD (MER 0.45%) – 60% or 70%
XEM (MER 0.82%) – 20% or 10%
XBB (MER 0.30%) – 20%
The way I see it is that this portfolio would give me a broad coverage of the entire world market with a minimal portion allocated to bonds. I’m only 30 years old and have a public sector pension awaiting me upon retirement (I hope), so I'm not risk-averse.
With that portfolio, my exposure to the Canadian market would be very small. Is there any real benefit for a Canadian investor to invest strongly in Canada funds or, in the case of an ETF portfolio, something like XIC, XIU, or CRQ?
I’ve chosen XEM (or CWO) as an emerging markets ETF. I believe that I should hold a strong position in emerging markets now and suspect that doing so will provide strong gains in the future.
I’ve chosen XBB as my fixed-income ETF as I believe it provides a broad coverage of Canadian government and corporate bonds rather than focusing on one or the other.
Any comments? Is anyone else doing anything similar?
