Archive for the ‘Sample ETF Portfolios’ Category

Dividend Focused Sample ETF Portfolio

By: Pete | Date posted: 04.22.2012 (9:40 pm)

Over the past few years, dividend investing has gained a lot of popularity because how well dividend investments typically perform in volatile and down markets but also because quite simply, many prefer getting immediate returns on their investments than risk longer term capital gains. We’ve written about this trend quite a bit and there are certainly many different ways that you can get a portfolio with dividend stocks. As you can imagine, one of those methds and one that we will discuss today is to buy dividend ETF’s, that will do the hard work of finding solid dividend stocks and changing them through time to optimize returns. Here is a list of current dividend ETF’s:

US Dividend ETF’s:

TickerNameMarket CapPriceReturn YTDFees1Y ReturnDividend Yield
DVYiShares Dow Jones Select Dividend Index Fund $7,797,847,000.00 50.854.39290.49.45183.62
VIGVanguard Dividend Appreciation ETF $7,628,418,000.00 52.190.32270.187.0472.2
SDYSPDR S&P Dividend ETF $6,669,453,000.00 51.781.53530.364.17733.34
VYMVanguard High Dividend Yield ETF $1,886,178,000.00 42.943.49720.2510.78492.95
DLNWisdomTree LargeCap Dividend Fund $805,142,000.00 46.542.64370.289.6552.85
DGSWisdomTree Emerging Markets SmallCap Dividend Fund $725,472,000.00 41.22-20.65440.63-15.16394.27
DTNWisdomTree Dividend Ex-Financials Fund $704,520,000.00 49.445.13160.3813.31443.46
IDViShares Dow Jones International Select Dividend Index Fund $619,144,000.00 30.88-5.09760.5-0.62565.12
PIDPowerShares International Dividend Achievers Portfolio $609,760,000.00 14.8-1.8290.581.56013.88
DWXSPDR S&P International Dividend ETF $532,530,600.00 47.97-10.06580.46-8.23026.9
HDViShares High Dividend Equity Fund $480,815,000.00 51.98N/A0.4N/A1.03
DLSWisdomTree International SmallCap Dividend Fund $379,257,000.00 45.42-9.61640.58-2.84234.13
FVDFirst Trust Value Line Dividend Index Fund $312,343,900.00 15.322.97860.78.05542.7
FDLFirst Trust Morningstar Dividend Leaders Index $279,541,500.00 16.596.6970.4511.56893.67
DOOWisdomTree International Dividend Ex-Financials Fund $240,786,000.00 41.16-3.81320.58-3.59514.53
DONWisdomTree MidCap Dividend Fund $232,892,500.00 49.03-1.91420.384.89483.06
PFMPowerShares Dividend Achievers Portfolio $226,575,000.00 14.253.00810.68.70362.55
DESWisdomTree SmallCap Dividend Fund $219,804,000.00 42.27-8.78560.38-0.14.02
PEYPowerShares High Yield Equity Dividend Achievers Portfolio $219,170,000.00 8.680.57890.65.6344.08
DTDWisdomTree Total Dividend Fund $176,852,000.00 46.541.65540.288.82243.02
DOLWisdomTree International LargeCap Dividend Fund $126,976,000.00 40.96-6.96260.48-6.06014.68
DIMWisdomTree International MidCap Dividend Fund $123,422,500.00 44.8809-10.54790.58-7.96344.08
FGDFirst Trust DJ Global Select Dividend Index Fund $112,100,000.00 22.42-1.96780.61.88154.83
EDIVSPDR S&P Emerging Markets Dividend ETF $68,580,000.00 45.72N/A0.59N/A4.16
AUSEWisdomTree Australia Dividend Fund $52,910,000.00 52.91-8.19770.58-1.08556.75
LVLGuggenheim S&P Global Dividend Opportunities Index ETF $41,901,600.00 13.43-5.22370.65-4.2066.07
SDIVGlobal X SuperDividend ETF $28,134,000.00 20.84N/AN/AN/A2.67
DFEWisdomTree Europe SmallCap Dividend Fund $22,340,500.00 34.37-14.9530.58-11.10915.57
KBWDPowerShares KBW High Dividend Yield Financial Portfolio $21,433,500.00 21.4335-4.96340.35N/A10.42
FDDFirst Trust STOXX European Select Dividend Income Fund $9,409,142.00 12.49-6.04350.6-5.40885.33

Canadian Dividend ETF’s

TickerNameMarket CapPriceReturn YTDFees1Y ReturnDividend Yield
XDViShares Dow Jones Canada Select Dividend Index Fund $894,520,000.00 20.331.05440.532.86983.84
CDZClaymore S&P/TSX Canadian Dividend ETF $492,825,100.00 20.380.79330.644.33523.59
CYHClaymore Global Monthly Advantaged Dividend ETF $106,532,600.00 14.45-6.92620.67-4.39124.39
HAZHorizons Global Dividend ETF $24,337,910.00 11.452.7372N/A8.0753.35
CUDClaymore S&P US Dividend Growers ETF $11,280,500.00 20.51N/AN/AN/AN/A
HALHorizons Dividend ETF $10,730,110.00 10.73-3.6182N/A-0.68562.5
PDCPowerShares Canadian Dividend Index ETF $6,573,000.00 18.78N/AN/AN/A0.93

In order to build a solid and diversified dividend portfolio, you do not need that many ETF’s. I would personally try to get:

-One broad domestic dividend ETF
-A dividend ETF that focuses on growth
-A more international dividend ETF

For US based citizens you could own these:

-Vanguard Dividend Appreciation ETF (VIG)
-iShares Dow Jones Select Dividend Index Fund (DVY)
WisdomTree International LargeCap Dividend Fund (DOL)

An equally invested portfolio on these would currently yield 3.50% (and should increase at a decent pace)

For Canadian based citizens you could own these:

-iShares Dow Jones Canada Select Dividend Index Fund (XDV)
-Claymore S&P/TSX Canadian Dividend ETF (CDZ)
-Horizons Global Dividend ETF (HAZ)

An equally invested portfolio on these would currently yield 3.59% but have less growth than the US one.

Sample ETF Portfolios

By: Pete | Date posted: 12.06.2011 (11:24 am)

As you can imagine, there are hundreds and probably thousands of different possible portfolios that can be used. The possibilities are almost endless, especially when you start looking into adding more commodity or other alternative assets. Even if you stuck to a simple retirement portfolio, there are a large number of possibilities. Before looking at the different type of portfolios that can be built, we strongly recommend that you take a look at our asset allocation post, in order to determine what type of portfolio you should be looking for.

As well, we highly recommend that you join our free mailing list that will provide you a step-by-step to help you build but also maintain and improve your portfolio. Obviously, as time goes by, the sample portfolios that we have here will be updated so the mailing list will be a great way to stay up-to-date.

Here are a few of the sample portfolios that we currently have:

Retirement Portfolios

Canadian ETF Portfolio (less than $10,000)
Canadian ETF Portfolio (more than $10,000)
US ETF Portfolio (less than $10,000)
US ETF Portfolio (more than $10,000)

Income Based Portfolios

Canadian Income Focused ETF Portfolio
US Income Focused ETF Portfolio

Aggressive and Actively Managed ETF Portfolios

Global Macro ETF Portfolio (coming soon)
BRIC ETF Portfolio (coming soon)
High Growth ETF Portfolio (coming soon)
Commodity ETF Portfolio (coming soon)

US Income Focused ETF Portfolio

By: Pete | Date posted: 12.06.2011 (11:23 am)

For many investors, the top priority is not capital growth but rather getting a reasonable amount of income with little risk to the capital. How to do? There is probably less need for risky assets such as emerging markets but increased need for diversification. Luckily, ETF’s provide just that. I think that in general an income focused portfolio would include the following asset classes:

Dividend Stocks (generally stable stocks): This could include ETF’s that are focused either on high yield and/or dividend growth and could also include preferred shares.

Corporate Bonds: This could include investment grade bond ETF’s or high yield bond ETF’s

Real-Estate Investments: This would generally done by buying ETF’s that invest in REIT’s.

Government Bonds: Finally, this would include bonds that invest in government bonds, that could be inflation protected or not and have short or long maturities

ETF’s To Include

In order to get those exposures, you could use the following ETF’s:

Dividend Stocks:

  • PFF-iShares S&P US Pref Stock Idx Fnd (ETF)
  • VIG-Vanguard Dividend Appreciation ETF
  • DVY-iShares Dow Jones Select Dividend (ETF)

Corporate Bonds:

  • LQD-iShares IBoxx $ Invest Grade Corp Bd Fd
  • AGG-iShares Lehman Aggregate Bond (ETF)
  • HYG-iShares iBoxx $ High Yid Corp Bond (ETF)

Real-Estate Investments:

  • VNQ-Vanguard REIT ETF

Government Bonds:

  • IEF-iShares Lehman 7-10 Yr Treas. Bond (ETF)

Canadian Income Focused ETF Portfolio

By: Pete | Date posted: 12.06.2011 (11:23 am)

For many investors, the top priority is not capital growth but rather getting a reasonable amount of income with little risk to the capital. How to do? There is probably less need for risky assets such as emerging markets but increased need for diversification. Luckily, ETF’s provide just that. I think that in general an income focused portfolio would include the following asset classes:

Dividend Stocks (generally stable stocks): This could include ETF’s that are focused either on high yield and/or dividend growth

Covered Call ETF’s: You can read more about covered call ETF’s here

Corporate Bonds: This could include investment grade bond ETF’s or high yield bond ETF’s

Real-Estate Investments: This would generally done by buying ETF’s that invest in REIT’s.

Government Bonds: Finally, this would include bonds that invest in government bonds, that could be inflation protected or not and have short or long maturities

ETF’s To Include

In order to get those exposures, you could use the following ETF’s:

Dividend Stocks:

  • XDV-iShares Dow Jns Cnd Slct Dvdnd Indx Fnd
  • CDZ-CLAYMORE SP TSX CDN DIVIDEND ETF

Covered Call ETF’s

  • ZWB-BMO COVERED CALL CANADIAN BANKS ETF
  • HEX-HORIZONS ENHANCED INCOME EQUITY ETF

Corporate Bonds:

  • XCB-iSHARES DEX ALL CORP BOND IDX FUND
  • CBO-CLAYMORE 1-5YR LADDERED CORP. BOND ETF
  • HAB-HORIZONS AP CORPORATE BOND ETF

Real-Estate Investments:

  • XRE-iShares S&P TSX Capped REIT Index Fund
  • ZRE-BMO EQUAL WEIGHT REITS INDEX ETF

Government Bonds:

  • XSB-iShares DEX Short Term Bond Index Fund
  • XBB-iShares DEX Universe Bond Index Fund

Sample ETF Portfolios: US ETF Portfolio (more than $10,000)

By: Pete | Date posted: 12.06.2011 (11:21 am)

In the case of a larger US retirement portfolio, you would add a few more asset classes:

-Domestic Stocks
-MSCI EAFE
-Emerging Markets
-Corporate Bonds
-Government Bonds
-International Bonds

These could be done with the following ETF’s:

-Domestic Stocks:

-IVV or SPY: Two very popular and low fee US ETF’s that track the S&P500, they are both traded on US markets

-MSCI Eafe:

EFA – Ishares ETF that tracks much of the developed world

-Emerging Markets:

VWO – Vanguard’s Emerging markets fund, traded on US markets

-Corporate Bonds

AGG – ETF that provides exposure to investment grade bond market
LQD – ETF that provides exposure to investment grade bond market

-Government Bonds

SHY – ETF that invests in short term US government bonds
TLT – ETF that invests in long term US government bonds
TIP – ETF that invests in inflation protected bonds

-International Bonds

EMLC – ETF that invests in international bonds

As you can see, there are many different possibilities even for a simple portfolio that only includes 5-6 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:

SPY/IVVEFAVWOAGG/LQDSHY/TLT/TIPEMLC
Investor 1100040500
Investor 2150040450
Investor 3200040400
Investor 4252.52.535350
Investor 5257.57.530300
Investor 630101025250
Investor 73512.512.520200
Investor 835202015100
Investor 93522.522.51055
Investor 10352525555

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

By: Pete | Date posted: 12.06.2011 (11:20 am)

US Portfolio (less than $10,000)

In the case of a smaller US retirement portfolio, you would keep it very simple with 3 asset classes:

-Domestic Stocks
-International Stocks
-Bonds

These could be done with the following ETF’s:

-Domestic Stocks:

-IVV or SPY: Two very popular and low fee US ETF’s that track the S&P500, they are both traded on US markets

-International Stocks:

EFA – Ishares ETF that tracks much of the developed world
VWO – Vanguard’s Emerging markets fund, traded on US markets

-Bonds

BND – Vanguard ETF that tracks the total bond market in the US (public, corporate, etc)
AGG – ETF that provides exposure to investment grade bond market
LQD – ETF that provides exposure to investment grade bond market

As you can see, there are many different possibilities even for a simple portfolio that only includes 3 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:

SPY/IVVEFA/VWOBND/LQD/AGG
Investor 1 - Most Conversative investor10090
Investor 215085
Investor 320080
Investor 425570
Investor 5301060
Investor 6351550
Investor 7402040
Investor 8452530
Investor 9503020
Investor 10 - Most Aggressive investor553510

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

By: Pete | Date posted: 12.06.2011 (11:19 am)

In the case of a smaller Canadian retirement portfolio, you would move to 7 asset classes. Obvious, a po:

-Domestic Stocks
-US Stocks
-EFA Stocks
-Emerging Markets Stocks
-Corporate Bonds
-Government Bonds
-International 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

-EFA Stocks:

EFA – Ishares ETF that tracks much of the developed world
XIC – $CAD hedged Ishares ETF that tracks the developed world

-Emerging Market Stocks

VWO – Vanguard’s Emerging markets fund, traded on US markets
XEM – $CAD hedged Ishares ETF that tracks emerging markets

-Corporate Bonds

XCB – Ishares ETF that tracks a Scotia index of Corporate bonds
HAB – Alphapro ETF that provides exposure to Corporate bonds

-Government Bonds

XBB – Ishares ETF that tracks a Scotia index of 3-10 year Canadian government bonds

-Foreign Bonds

BND – Vanguard ETF that tracks the total bond market in the US (public, corporate, etc)
TIP – US ETF that provides exposure to inflation protected bonds issued by the US government

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/SPYEFA/XICVWO/XEMXCBXBBBND
Investor 1 - Most Conversative investor550040500
Investor 27.57.50040450
Investor 310100040400
Investor 412.512.52.52.535350
Investor 512.512.57.57.530300
Investor 61515101025250
Investor 717.517.512.512.520200
Investor 817.517.5202015100
Investor 917.517.522.522.51055
Investor 10 - Most Aggressive investor17.517.52525555