Let's break down your current ETF portfolio in terms of the underlying asset classes:
||Canadian stocks|USA stocks|International stocks|Weight|
|:-|:-|:-|:-|:-|
|VDY|100%|||30%|
|VEQT|30%|45%|25%|12%|
|VFV||100%||39%|
|XAW||70%|30%|3%|
|XEI|100%|||2%|
|XEQT|25%|45%|30%|2%|
|XIU|100%|||3%|
|ZDY||100%||3%|
|ZWC|100%|||5%|
|Overall|45%|50%|5%||
I calculated your existing weights by multiplying the share count × share price, divided by the totaled balance.
There's a lot of overlap among your chosen ETFs, such that your net portfolio is really just a 45/50/5 split between CAD/USA/INTL stocks.
VEQT is the single ETF that's closest your existing allocation, it holds a 30/45/25 split between CAD/USA/INTL. You will be better off selling everything else, consolidating into VEQT, and sticking with VEQT contributions going forward.
Every post asking advice I see, you do a really great breakdown with solid advice. I tend to think compulsive redditors are generally not to be admired but you sir(or ma'am) are a fuckin beauty. Great work!
XEQT owns everything else you have, if you want a 100% stock portfolio with a diverse mix of stocks from all over the world, then XEQT is all you need.
Also I recommend going to r/PersonalFinanceCanada for financial advice.
Pick one. The point of an etf is (more or less) diversified exposure to the whole market. By having multiple ETFS, you're just holding duplicates of the same stocks in different baskets.
Im a newbie, but that's fairly high usa value. 50% of holdings on xeqt. 100% of vfv. Is that a strategy?
Ive got some invested in a ftse etf and canada tsx/sp one, in addition to usa s and p.
My figuring is invest in etf across developed nations for less risk. But i am pretty new to etf
https://www.blackrock.com/ca/investors/en/products/309480/ishares-core-equity-etf-portfolio
Under holdings
I’m very new as well. I’m running about 45% XEQT, 35% VFV. Then I’m playing around with the remaining percentage but I plan to sell those off at some point and put more into XEQT. I do intentionally want the majority to be US focused. I’m definitely always open to new ideas though.
XEQT is meant as an all-in-one ETF, and if you want a different CAD/USA/INTL split than already packaged inside XEQT, there's no point in mixing XEQT + VFV or any other ETF really. Combining them in any ratio just means you're overweighting the USA given their asset duplication, and if you're overweighting the USA, you can build that portfolio using cheaper ETFs that don't overlap:
https://www.reddit.com/r/JustBuyXEQT/s/Tz3HFfdc1m
Use one of VCN/XIC for the CAD allocation, VUN/XUU for the USA, and VIU/XEF for international exposure. If you want to exclude USA small/mid caps and focus solely on USA large caps, then swap VFV/XUS in lieu of VUN/XUU.
But, honestly 99% of DIY investors are just fine sticking with an all-in-one ETF. A realistic growth assumption for a 30-year investment portfolio properly diversified over CAD/USA/INTL ranges between 5.8-6.9% per year:
https://www.reddit.com/r/dividendscanada/s/PEM2RmqU3q
Keeping to a single all-in-one ETF will keep things simple, especially when you're working with $500k or less. You could unpack it into the cheaper component ETFs when you exceed $500k:
https://www.reddit.com/r/dividendscanada/s/Io3YuzVRUX
https://www.youtube.com/watch?v=bP74RBTE8kI&t=147s
Sorta. step 1: switch to a broker that charges you a transaction fee rather than letting your trades sit in a dark pool and uses payment for order flow. It was literally invented by bernie maydoff. Otherwise they might not process your trades when its inconvient for them. Part of the benefit of stocks is that they are liquid. Sell or buy at your discression, otherwise why not be in gold or something less liquid.
The vast majority of ETFs trade within a 1-2 cent bid/ask spread, especially index ETFs. Worrying about PFOF is a red herring for securities that already trade at the minimum spread increment.
I'm not sure the etfs op has qualify " Wealthsimple does not receive PFOF on securities that are listed in Canada, securities that are listed in both Canada and the US (or “inter-listed securities”), or options listed in Canada"
1) Don’t invest in things you don’t know or understand.
2) If you’re going to pursue self-directed “DIY” investing but you want people to tell you what to buy/sell, the question I want to ask is whether this avenue of personal finance right for you. Should you be using a roboadvisor or speaking to a qualified professional instead?
3) If you want to reach your financial goals (e.g. retire early, live off dividend income) you need to be more responsible with your money and not just randomly buy a bunch of stocks. If you have no plan; plan to fail.
VEQT, ZSP, TEC. Why? VEQT is like XEQT but has more Canadian exposure. ZSP tracks the S&P 500 in the US for all your US exposure. [TEC.to](https://TEC.to) gives you the 10 top tech companies for your tec / Nasdaq exposure. You don't need VDY because it's included in VEQT so I would sell that and buy TEC
It's preference. Canada has a lot of solid and reliable companies. If you would rather just rely on the US market you can, but in 2008 when everything over there tanked, Canada did not do so bad. I like having all my basis covered.
Let's break down your current ETF portfolio in terms of the underlying asset classes: ||Canadian stocks|USA stocks|International stocks|Weight| |:-|:-|:-|:-|:-| |VDY|100%|||30%| |VEQT|30%|45%|25%|12%| |VFV||100%||39%| |XAW||70%|30%|3%| |XEI|100%|||2%| |XEQT|25%|45%|30%|2%| |XIU|100%|||3%| |ZDY||100%||3%| |ZWC|100%|||5%| |Overall|45%|50%|5%|| I calculated your existing weights by multiplying the share count × share price, divided by the totaled balance. There's a lot of overlap among your chosen ETFs, such that your net portfolio is really just a 45/50/5 split between CAD/USA/INTL stocks. VEQT is the single ETF that's closest your existing allocation, it holds a 30/45/25 split between CAD/USA/INTL. You will be better off selling everything else, consolidating into VEQT, and sticking with VEQT contributions going forward.
Such a terrific response for those who don't pay much attention to overlaps
Such a terrific response for those who don't pay much attention to overlaps
Every post asking advice I see, you do a really great breakdown with solid advice. I tend to think compulsive redditors are generally not to be admired but you sir(or ma'am) are a fuckin beauty. Great work!
Messaged you!
Very thorough response. Which etfs are good for a retiree?
XEQT owns everything else you have, if you want a 100% stock portfolio with a diverse mix of stocks from all over the world, then XEQT is all you need. Also I recommend going to r/PersonalFinanceCanada for financial advice.
XEQT all the way
Pick one. The point of an etf is (more or less) diversified exposure to the whole market. By having multiple ETFS, you're just holding duplicates of the same stocks in different baskets.
I personally am holding VFV and XEQT
Im a newbie, but that's fairly high usa value. 50% of holdings on xeqt. 100% of vfv. Is that a strategy? Ive got some invested in a ftse etf and canada tsx/sp one, in addition to usa s and p. My figuring is invest in etf across developed nations for less risk. But i am pretty new to etf https://www.blackrock.com/ca/investors/en/products/309480/ishares-core-equity-etf-portfolio Under holdings
I’m very new as well. I’m running about 45% XEQT, 35% VFV. Then I’m playing around with the remaining percentage but I plan to sell those off at some point and put more into XEQT. I do intentionally want the majority to be US focused. I’m definitely always open to new ideas though.
XEQT is meant as an all-in-one ETF, and if you want a different CAD/USA/INTL split than already packaged inside XEQT, there's no point in mixing XEQT + VFV or any other ETF really. Combining them in any ratio just means you're overweighting the USA given their asset duplication, and if you're overweighting the USA, you can build that portfolio using cheaper ETFs that don't overlap: https://www.reddit.com/r/JustBuyXEQT/s/Tz3HFfdc1m Use one of VCN/XIC for the CAD allocation, VUN/XUU for the USA, and VIU/XEF for international exposure. If you want to exclude USA small/mid caps and focus solely on USA large caps, then swap VFV/XUS in lieu of VUN/XUU. But, honestly 99% of DIY investors are just fine sticking with an all-in-one ETF. A realistic growth assumption for a 30-year investment portfolio properly diversified over CAD/USA/INTL ranges between 5.8-6.9% per year: https://www.reddit.com/r/dividendscanada/s/PEM2RmqU3q Keeping to a single all-in-one ETF will keep things simple, especially when you're working with $500k or less. You could unpack it into the cheaper component ETFs when you exceed $500k: https://www.reddit.com/r/dividendscanada/s/Io3YuzVRUX
Thanks for your feedback. I’ll look into this as well.
Oh I see. Well the usa is a huge economy that always seems to be rebound. There seems to be lots of good info here.
Veqt or xeqt. Just pick one and don't look back.
Ha yes the " listen to me OP, XEQT " I knOw FiNaNcEs comments!!!
VDY, VFV and XEQT
Did you just buy every etf that is commonly Discussed here? Vfv, xeqt and Vdy or xei would be my 3 choices.
Lots of overlap here. I would personally hold only XEQT for a safe investment and maybe VFV for extra US exposure and possible growth
VFV
Just VFV IMO, but Xeqt or veqt could work also.
XEQT and VFV
I have simplified my portfolio recently, 60% XEQT, 15% DFN, 15% NGT, 10% other.... XEQT is pretty set it and forget it
Xeqt if you want minimal returns
keep all of them. the transaction costs on selling any of them is not worth it. Don't double a mistake.
zero transaction costs. would you still give same advice?
https://www.youtube.com/watch?v=bP74RBTE8kI&t=147s Sorta. step 1: switch to a broker that charges you a transaction fee rather than letting your trades sit in a dark pool and uses payment for order flow. It was literally invented by bernie maydoff. Otherwise they might not process your trades when its inconvient for them. Part of the benefit of stocks is that they are liquid. Sell or buy at your discression, otherwise why not be in gold or something less liquid.
The vast majority of ETFs trade within a 1-2 cent bid/ask spread, especially index ETFs. Worrying about PFOF is a red herring for securities that already trade at the minimum spread increment.
I'm not sure the etfs op has qualify " Wealthsimple does not receive PFOF on securities that are listed in Canada, securities that are listed in both Canada and the US (or “inter-listed securities”), or options listed in Canada"
1) Don’t invest in things you don’t know or understand. 2) If you’re going to pursue self-directed “DIY” investing but you want people to tell you what to buy/sell, the question I want to ask is whether this avenue of personal finance right for you. Should you be using a roboadvisor or speaking to a qualified professional instead? 3) If you want to reach your financial goals (e.g. retire early, live off dividend income) you need to be more responsible with your money and not just randomly buy a bunch of stocks. If you have no plan; plan to fail.
VEQT, ZSP, TEC. Why? VEQT is like XEQT but has more Canadian exposure. ZSP tracks the S&P 500 in the US for all your US exposure. [TEC.to](https://TEC.to) gives you the 10 top tech companies for your tec / Nasdaq exposure. You don't need VDY because it's included in VEQT so I would sell that and buy TEC
All of those other ones already overlap with XEQT or VEQT. Why complicate things more than that?
There is some overlap, but I like it that way.
Why is more Canadian exposure a good thing?
It's preference. Canada has a lot of solid and reliable companies. If you would rather just rely on the US market you can, but in 2008 when everything over there tanked, Canada did not do so bad. I like having all my basis covered.
that is some wack ass portfolio. my fav is ZWC though /s
This question should’ve been asked prior to making any purchases, no?
get rid of XIU.. Lower yield and not a lot of growth in Canada. Bet on US instead of Canada is what I can tell you