I think Canadian beginners overcomplicate investing when realistically a few good ETFs can do the job. For a starter portfolio this would be a great starting point. $10,000(CAD) example 40% $XEQT — Global diversification ($4,000) 28% $VFV — S&P 500 growth ($2,800) 16% $VDY — Canadian dividends ($1,600) 10% $XEF — International stocks ($1,000) 6% $RY — Royal Bank or your own high-conviction stock ($600) I like XEQT as the foundation but I’d add more U.S. exposure for the growth potential and VDY for dividend income. Obviously there’s some overlap and risk with being 100% in stocks. But this is just my opinion and probably what I would do. Overall I think it’s a simple portfolio that gives beginners a solid starting point for long term investing.
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33 Comments
MigiSnip
@migisnip · 17d
There so much unnecessary overlap here.
Joe
@big_daddy_niagara · 17d
Replace $XEQT with $HDIV and it makes sense...#'s don't lie...and 5 years is a very good sample size. Leaving 47% on the table is a tough pill to swallow.
Stu
@stu204 · 16dEdited
@big_daddy_niagara Oh this isn't my entire portfolio Joe, & you're correct friend, about baskets of eggs & 1 place. Just an educational one I recently created because it's easier to show rather than tell. For younger investors, new to all the various types of accounts & all that, it's actually a handy tool & since they should be able to tolerate the risk, it's not a bad thing, if their eggs were in 1 basket for this purpose. $HDIV is great all around, for TFSA & cash account too, $HYLD I personally don't use in TFSA, but cash account all day, I love the constructive ROC in cash accounts. Same goes for the DAY series & similar high ROC vehicles. BIGY has some destructive ROC, but I'm holding MSTE so I can't make complaints about using destructive ROC for various purposes. As long as people know and understand it, and it's working for their intended purposes, that's what matters. Like you, I focus on total returns, but I also build a series of portfolios for specific goals, with various mixtures or combinations of investments. RRSP for example, I try to limit each portfolio to 5 or less. Main features often appearing like VOO, SCHG/D, XMMO, XMHQ, QQQM, with other ones sprinkled in such as ISBG or TSPY etc. I don't mind investing in some riskier plays to drive up the income being generated at times.
Rupi @rupitherisker · 17d
Not bad
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