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Discussion Starter #1
I am male, 33, no debts, no kids, no mortgage. My portfolio is out of whack. Consider the following:


VWO (foreign eq) 16K
ILF (latin america) 18K
JXI (intl utilities) 14K
IXP (intl telecom) 11K
Cash CDN 7K

VGK (europe) 28K
VPL (asia) 15k

CP (cp rail) 6K
CU (cdn utils) 4K
ENB (enbridge) 4K
XDV (cdn divs) 7K
XIU (cnd eq) 12K
XTR (cnd inc trust) 7K
Cash 16K


COS.UN (oil sands) 10K

1) Should I dump XTR or get the COS.UN out of the TFSA given the 2011 changes?
2) I figure I need some small cap. I was thinking XCS. Is now a good time for small cap? Can buy and hold small cap or should it be dumped periodically? Is XCS better than VBR or XSU?
3) I figure I need some bonds. Is now the worst time given interest rates? I was considering some higher risk emerging market bond etf eg: PCY or EMB. Will these funds suffer as interest rates rise in the same way as domestic bonds? If more developing countries float debt vs accepting aid, how will these funds be affected? Are these funds too risky for the safety component I am looking for?
4) Should I just leave the cash I got in CDN$ for the short term?

Any advice would be greatly appreciated.

424 Posts
Your Canadian exposure looks pretty large cap to me. So XCS or XMD would help you diversify. I don't think it is right to compare them to VBR and XSU because the latter two are in a different country. You could also hold individual stocks that are not in the major Canadian sectors (financial, energy, materials).

REITs are equities, but are often treated as an asset class that is separate from stocks. My asset allocation plan is to hold 10% of my portfolio in REITs in a tax sheltered account. They tend to be low beta, and they pay a lot of income: perfect for a TFSA or RESP that will be accessed within 5 years or so.

With respect to USA, and VBR vs XSU: VBR offers the Fama-French value bonus. XSU offers hedging to CAD.

356 Posts
I'd stay away from Europe, buy some GLD (not more than 10%).

You didn't mention your portfolio is doing?

Short term bonds are not too late to buy but don't don't go long term with corporate bonds.

I have been slowly dumping XTR as well.
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