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What are you buying? 2022
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Why don't you buy XEQT instead of buying individual ETF? I am very confident that your individual portfolio will not be able to beat the all world equity ETF.
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I do also buy XEQT, and it is much larger than the XIU, XIC, XEM I own.
But I like to dabble and play around. I do also like to try and take advantage when I feel it is right to do so. The TSX was down quite a bit more than normal today and moreso than the US markets, so I decided to add a bit to XIU/XIC.
Maybe I will have a worse return in 20 years, or maybe it will be better. Who knows. =)
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I used to think like you that I can beat the XEQT. I have been tracking the performance of XEQT against the individual broad based index ETF since 2019, unfortunately I can't even match the performance of XEQT. So, starting from March, 2022, buying only XEQT and ZRE for monthly income.
You mentioned XEQT and ZRE for monthly income. Do you buy any ZWC? With the covered call ZWC has much higher yield. Not for everyone but good for income.
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No. I am in accumulation stage and I want to build a REIT position that would provide me monthly income in future.
Here is the comparison between ZWC and ZRE for the last 5 years.
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How old are you @scorpion_ca ?
I don't have ZRE but instead hold CGR.
I usually like to pick my own REITs, too. I know we already had the discussion about "picking things", but I have sizeable amounts in SRU, REI.UN, CAR.UN and KMP.UN
I would love to add more to my CGR position as it's come down to a more reasonable level.
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I'm torn on REITs. They tend not to see as much capital appreciation as other equities. They were a great holding when we had low rates as you could get a nice steady yield and low volatility. I considered them a decent bond replacement. Now that the yield is comparable for a 3 year GIC and KMP.UN I am not so sure. I definitely like the price much better than a year ago but Am not sure when we will see gains in REITs. Perhaps I'll get more interested after the next hike depending on how REITs respond. I understand real estate is a good hedge against inflation. @KaeJS Are what is your expectation for REITs over the next while. We are often on a similar wave length. As mentioned elsewhere, I have been keeping duration short while I decide where to put future purchases. Obviously you are bullish as you have been adding. I would be interested to hear your thoughts as to what's to come.
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I am one of the people who feel like inflation will not continue to run.
I think at some point, oil will come down in price and I think that supply chain issues will resolve.
In addition, I think if inflation gets too high, people are simply not going to have disposable income. I think this case of rising rates by the governments is going to be short term. I can't see it lasting.
However, I can see people and businesses needing to pay rent. Also, in a lot of places, rent is tied to inflation so these companies should be collecting more revenue even if their expenses increase.
You're correct that the gains of the REITs will no doubt be less than that of some longer term growth companies, but REITs are still an important part of my portfolio. I tend to keep quite a bit of my REITs in the TFSA for tax reasons.
If you've got the long term outlook, then just keep using the distributions to buy more shares =)
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Below 40s.
I am going to stick with Canadian REITs for now. I like ZRE because it's an equal weight ETF.
what about RIT.TO? actively managed and MER isnt much higher
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Started a position in Lundin Mining (LUN.TO) this morning at $7.89 as a long term hold. I opted for base metals over lumber to diversify my commodities exposure. Both could see further decline along with the rest of the market on recession fears/reality. I opted for this one over TECK because of it's low debt. It has done a remarkable job in the last few years in reducing its debt while providing return to shareholders. Cash weighting now just under 11%
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