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2018 TFSA investment time tips

  • Last Updated:
  • Nov 11th, 2017 11:45 am
[OP]
Newbie
Oct 21, 2016
56 posts
3 upvotes

2018 TFSA investment time tips

Hi

In my TFSA I have 20k VCN 20K VUN and 15K XEF, do you think I should put the entire $5500 . Emerging markets are volatile but they may show some good growth in the next couple years. EVentually want to make XEC emerging markets 15 percent of TFSA is this good idea?II avoided emerging markets initially due to some advice I received which may have not been sound.
5 replies
Deal Addict
Jan 20, 2016
1376 posts
516 upvotes
Houston, TX
Shaun80 wrote:
Nov 9th, 2017 12:54 pm
Hi

In my TFSA I have 20k VCN 20K VUN and 15K XEF, do you think I should put the entire $5500 . Emerging markets are volatile but they may show some good growth in the next couple years. EVentually want to make XEC emerging markets 15 percent of TFSA is this good idea?II avoided emerging markets initially due to some advice I received which may have not been sound.
Just do NOT buy on Tuesday!!!

With apologies to Mark Twain:

Tuesday. This is one of the most peculiarly dangerous days to invest. The others are Friday, Monday, Thursday, and Wednesday.

However, Monday seems to be most volatile:
From June 1952 to December 1989 Monday was the best day to invest. The S&P 500 Index rose only 44.3% of the time.

From January 1990 to April 23, 2010 Monday was the worst day to invest. The S&P 500 Index rose 55.4% of the time.

Source: 2011 Stock Trader's Almanac
ps. my traditional 5c :) - sell VUN&XEF, add your 5.5k and buy XAW - you'll get all three (US/INTL/EM) in one ETF, you'd loose $20 in worst case on commission (as you'd have a BUY anyway) but will gain in simplicity and probably in MER (peanuts, however on such amount)

typo corrected to XAW
Make the Trudeau drama teacher again!
[OP]
Newbie
Oct 21, 2016
56 posts
3 upvotes
I didnt choose XAW because I want to overweight the US market, 60 percent US and 40 percent emerging and developed international, then have 30 percent developed and 10 percent emerging. Is that XAW breakdown?
Deal Addict
Jan 20, 2016
1376 posts
516 upvotes
Houston, TX
Shaun80 wrote:
Nov 9th, 2017 5:15 pm
I didnt choose XAW because I want to overweight the US market, 60 percent US and 40 percent emerging and developed international, then have 30 percent developed and 10 percent emerging. Is that XAW breakdown?
54% US , 34% Developed , 12% EM - imo very close to what you want to achieve, until you have 0.5-1M portfolio, +- few % in AA do not make any significant difference...
https://www.blackrock.com/ca/individual ... -index-etf
Ticker Name Sector Market Value Weight (%) Notional Value

IVV ISHARES CORE S&P 500 ETF Financials CAD 190,604,849.05 44.49 190,604,849.05
XEF ISHARES MSCI EAFE IMI INDEX Financials CAD 147,099,276.80 34.34 147,099,276.80
IEMG ISHARES CORE MSCI EMERGING MARKETS Financials CAD 52,086,109.05 12.16 52,086,109.05
IJH ISHARES CORE S&P MID-CAP ETF Financials CAD 17,735,922.73 4.14 17,735,922.73
IJR ISHARES CORE S&P SMALL-CAP ETF Industrials CAD 17,330,156.21 4.05 17,330,156.21
ITOT ISHARES CORE S&P TOTAL U.S. STOCK Financials CAD 3,426,012.32 0.80 3,426,012.32
Make the Trudeau drama teacher again!
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Oct 14, 2001
1461 posts
258 upvotes
GMA
Shaun80 wrote:
Nov 9th, 2017 5:15 pm
I didnt choose XAW because I want to overweight the US market, 60 percent US and 40 percent emerging and developed international, then have 30 percent developed and 10 percent emerging. Is that XAW breakdown?
Not judging your strategy or justifications but that trying to over/under weight asset classes, sectors and/or countries is active management. Personally, and again that's me only, if it wasn't for the fiscal advantages of holding canadian assets (DTC), I would simply do world total market approach like the US ETF VT is doing. Not having a Canadian equivalent, I'd do 100% XAW equities.

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