Sample ETF Portfolios: Canadian ETF Portfolio (less than $10,000)

By: Pete
Date posted: 12.06.2011 (11:18 am) | Write a Comment  (0 Comments)

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In the case of a smaller Canadian retirement portfolio, you would likely only have 4 asset classes:

-Domestic Stocks
-US Stocks
-Foreign Stocks
-Bonds

These could be done with the following ETF’s:

-Domestic Stocks:

-XIU – Ishares ETF that tracks the TSX60 index)
-HXT – Similar exposure to XIU but it automatically reinvests dividends, charges lower fees but has derivative exposure

-US Stocks:

-XSP – $CAD hedged exposure to the S&P500 (through IVV
-IVV or SPY: Two very popular and low fee US ETF’s that track the S&P500, they are both traded on US markets

-Foreign Stocks:

VWO – Vanguard’s Emerging markets fund, traded on US markets
EFA – Ishares ETF that tracks much of the developed world
XEM – $CAD hedged Ishares ETF that tracks emerging markets
XIC – $CAD hedged Ishares ETF that tracks the developed world

-Bonds

BND – Vanguard ETF that tracks the total bond market in the US (public, corporate, etc)
XBB – Ishares ETF that tracks a Scotia index of 3-10 year Canadian government bonds
XCB – Ishares ETF that tracks a Scotia index of Corporate bonds

As you can see, there are many different possibilities even for a simple portfolio that only includes 4 ETF’s. I think the first step would be to select what you want in each of those asset classes. When you will combine that with your investor profile, you will get a very good idea of what to include in your portfolio. Here is the table again:

XIU/HXTXSP/IVV/SPYVWO/EFA/XEM/XICBND/XCB/XBB
Investor 1 - Most Conversative investor55090
Investor 27.57.5085
Investor 31010080
Investor 412.512.5570
Investor 515151060
Investor 617.517.51550
Investor 720202040
Investor 822.522.52530
Investor 925253020
Investor 10 - Most Aggressive investor30303010


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