What do I do when the stock market drops and my TFSA portfolio takes a hit? This is a transparent look at my $322,250 TFSA portfolio after a volatile October, when global markets took a beating and the Nasdaq 100 briefly entered correction territory.... we all know November has continued the trend... For those of you interested in seeing a real life example of what all in one ETF's do during a market pull back, one mcap and one using 4 single factors, see how $XEQT faired compared to $FEQT in the sharp pull back at the end of the month. That trend is continuing into November.... Also, I'm looking for a good emerg market multifactor ETF in Cad.... just to complicate my portfolio a little more 🙃 Let me know what you use please! https://youtu.be/H5JMG8Z_okg
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ETF Go
@etf.go · 14h
For EM the performance differentiator has likely been their weighting to Taiwan and South Korea and specifically their big tech/chip names ($TSM$SMSN$SKHYV ) According to Cboe Canadas ETF Screener there are 36 EM EquityETFs in Canada. ✅ Biggest MCap options: $XEM$VEE ✅✅ Interestingly the ESG EM option now has the biggest AUM: $XSEM. EM is an area I could see investors rewarding companies that have a higher ESG score. ✅✅. Only Manulife has a ‘multifactor’ option: $MEME-B. Over the ‘max’ time shown of the ETF selected it did add value over MCap options. ⚠️⚠️ I also added 2 ‘active’ EM option. Results were ‘mixed’ showing the importance/risk of manager selection. $CIEM$DXEM 🏆🏆The STANDOUT was the IShares Fundamental ETF $CWO which also breaks away from MCap by weighting companies based on their Sales, Dividends, Book Value and Cashflow. Typically Fundamental Index methodology is said to provide a tilt to Value/SmCap vs MCap and rebalance annually to avoid overweights. Cutting the ‘newer’ ETFs from the comp shows a longer history of CWO vs MCap and the various changes in leadership at different times. 🧐 Worth noting $CAEM from CIBC/Avantis was launched more recently and my guess would be another option to complement the MCap exposure for EM.m and likely worth watching. People can choose what they like. But based on different strategies and results I’d say it wouldn’t be hard to make a case for blending MCap and Factor/Fundamental ETFs to get the broadest diversification and best of two methodologies within EM exposure. Hope this helps. 👍 AWARENESS ≠ ENDORSEMENT PERSPECTIVE ≠ PREDICTION PS. I was part of the team that originally brought CWO to market. That said my bias doesn’t change the results. 😉😂
EVID Wealth@evidwealth · 13h
$CAEM would give you that factor exposure is CAD$ at a “low-ish” cost, but does not have a long history. To see if you like Avantis’ methodology with EM, you could use $AVEM (in USD$) which has at least been around since 2019. 🤷♂️
Richard Verhaeghe
@ravonar · 12h
This was awesome, I liked and hyped, shared and saved.
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