Advise on Funds Allocation (RRSP)

How about putting 100% into VGRO and call it a day. It is asset allocation, very diversified and has some fixed income to smooth out the beta. If you are willing to go 100% equities, then just buy VEQT.

Thanks will888 for the advise. I will look into VEQT as well. I was thinking some aggressive growth as well, that's why selected ZQQ and some Global exposure VVL other than North Americans market.

Hannzz wrote: ↑ Thanks will888 for the advise. I will look into VEQT as well. I was thinking some aggressive growth as well, that's why selected ZQQ and some Global exposure VVL other than North Americans market.

I was not sure of your appetite for risk. That is why I suggested VGRO and VEQT. Personally, I do have plenty of HXQ which is the same index as ZQQ but no currency hedging. BTW, VLL is not really something that would be considered high risk. It is a value factor fund. If you do get that, the idea is to get a small amount of it to complement an index fund.

If you don’t mind taking on more risk I’d do:

90% XGRO/VGRO
10% ZQQ/ZNQ/HXQ(Nasdaq 100)

Change to 90% XEQT/VEQT if your willing to go all equity.

Simple 2 ETF strategy.

I second the suggestions for VEQT. That said your allocation is not bad at all, i kinda like it.
That said you are currently very US heavy, VEQT may balance you out more.

Also i do not know the difference between ZQQ and QQQ.

Thanks Guys for the feedback. I will definitely include VEQT in the portfolio.

Hannzz wrote: ↑ Thanks Guys for the feedback. I will definitely include VEQT in the portfolio.

Would be interested to see what your final allocation is

I decided to go with this and reallocate/consolidate if required in 1 to 2 years.

Vanguard Growth ETF Portfolio (VGRO.TO) 30%

VEQT 25%

Vanguard S&P 500 Index ETF (VFV.TO) 15%

Vanguard Global Value Factor ETF CAD (VVL.TO) 15%

NASDAQ 100 Index ETF HXQ.TO) 15%

Hannzz wrote: ↑ I decided to go with this and reallocate/consolidate if required in 1 to 2 years.

Vanguard Growth ETF Portfolio (VGRO.TO) 30%

VEQT 25%

Vanguard S&P 500 Index ETF (VFV.TO) 15%

Vanguard Global Value Factor ETF CAD (VVL.TO) 15%

NASDAQ 100 Index ETF HXQ.TO) 15%

This still has a lot of overlap.
I am a bit surprised none of the heavy hitters have posted in this thread with an opinion.

Quentin5 wrote: ↑ This still has a lot of overlap.
I am a bit surprised none of the heavy hitters have posted in this thread with an opinion.

Well how many times one can repeat the same advice to those who won’t get it anyway until they try it “their way”?

xgbsSS wrote: ↑ Sorry, don't want to complicate your decision further, however....

If you plan to invest in an all-in-one ETF, I would actually recommend a slightly different strategy...

Instead of VGRO/XGRO

80% VEQT/XEQT
20% XBB/VAB/ZAG

The reason I like this strategy better is that you can easily adjust your portfolio without selling your ETFs. Say as you get older, you want to move down to XBAL/VBAL. Instead of selling your XGRO/VGRO, you just have to buy more of the bonds. This will save you a transaction.

Also, say for instance you want to be 70% equity and 30% bonds, now you have a way to easily do this as all-in-ones have set proportions.

freilona wrote: ↑ Well how many times one can repeat the same advice

I was unaware of that thread which was started by another person over two years ago.
But is appears to be good advice.
Does it change with the OP's shorter timeframe?

to those who won’t get it anyway until they try it “their way”?

Where is this coming from?

Quentin5 wrote: ↑ I was unaware of that thread which was started by another person over two years ago.
But is appears to be good advice.

Same advice was posted multiple times. Yet more people keep asking the same “Why in addition to all-in-one ETF that was designed to simplify things I won’t buy a few more ETFs?” Now, what’s the worst that can happen? The OP will have more money in more than one account one day, and hopefully will see for himself what works and what doesn’t - and will start asking more advanced questions (or will learn to find the answers himself, at least using https://www.portfoliovisualizer.com/backtest-portfolio to backtest his ideas)

Where is this coming from?

From the same old thread, a year later:

pipidae wrote: ↑ I definitely understand better why you recommended the split way to begin with, that portfolio is easier to manage this change for sure.

I don’t know why the fact that VGRO = VEQT + VAB is such a hard concept for some beginners to grasp (not to mention all the other US ETFs that combined together make no sense..) But, as you said, the “allocation is not bad at all, i kinda like it” - so let him do what he picked/liked (for whatever reason )

Quentin5 wrote: ↑ I was unaware of that thread which was started by another person over two years ago.
But is appears to be good advice.
Does it change with the OP's shorter timeframe?

How does holding many overlapping ETFs account for shorter time frame? If the time frame is considered too short, then don't play in the equity arena. Notwithstanding this, when I see advice seekers saying my investment time frame is x years into the future, my take is that there better be flexible to accommodate to x +/- a couple of years. It makes no sense to unwind an account into a market meltdown. It might make sense to unwind a year or two early into a long on the tooth bull market.

freilona wrote: ↑ Same advice was posted multiple times. Yet more people keep asking the same “Why in addition to all-in-one ETF that was designed to simplify things I won’t buy a few more ETFs?”

Back when i was in post secondary we had this statistics professor that was useless, he would teach things in abstract and skip key parts. Apparently decades earlier he was a good teacher but had taught the same thing so many times he started taking shortcuts. But as students churn each year his later students had no idea what he was talking about because he left out core concepts thinking he had already covered them. He had, with students who had graduated decades earlier.
People who have not read every thread on RFD will not know what to you is the basics, no matter how many times they are repeated to other people.

Now, what’s the worst that can happen? The OP will have more money in more than one account one day, and hopefully will see for himself what works and what doesn’t - and will start asking more advanced questions (or will learn to find the answers himself, at least using https://www.portfoliovisualizer.com/backtest-portfolio to backtest his ideas)

Now that is a clever tool.

From the same old thread, a year later:

I did not know he had asked about this before. But if you don;t want to engage with him again then there is no need to.
Perhaps he needs more reassuring, perhaps he needs to understand the concept better with some background, perhaps he is resistant to ideas that don't come from him.
I have no idea.

I don’t know why the fact that VGRO = VEQT + VAB is such a hard concept for some beginners to grasp (not to mention all the other US ETFs that combined together make no sense..) But, as you said, the “allocation is not bad at all, i kinda like it” - so let him do what he picked/liked (for whatever reason )

Perhaps its too simple?
What i do find interesting is his ZQQ, one could argue for an index fund and a higher return version of the same. I have some QQQ even though i have VEQT.

freilona wrote: ↑
I don’t know why the fact that VGRO = VEQT + VAB is such a hard concept for some beginners to grasp (not to mention all the other US ETFs that combined together make no sense..) But, as you said, the “allocation is not bad at all, i kinda like it” - so let him do what he picked/liked (for whatever reason )

I agree 110%. When questioning the level of diversification in the advice, it is imperative to have completed some amount of due diligence on the advice that involves a little more than doing a raw count on the number of ETFs. The check is pretty simple. It took longer to type this up than to look up the information from Vanguard.

This is the constituents in VGRO.

https://www.vanguard.ca/api/document/12396/CA

This is the constituents in VEQT.

https://www.vanguard.ca/api/document/18889/CA

In order of weighting on the equity side, I see US total market equity ETF, FTSE Canada All Cap Index ETF, FTSE Developed All Cap ex North America Index ETF, FTSE Emerging Markets All Cap Index ETF. The weightings are slightly lower for VGRO to accommodate the bond holdings. VGRO bond holdings consists of a little more than 50% Canadian Aggregate Bond Index ETF. I would say that VGRO ≈ VEQT + VAB.

My RRSP is much larger and I hold primarily 3 ETFs covering two major US indices and the Canadian index. Apart from geographic concentration, I think I am pretty diversified.

Quentin5 wrote: ↑I did not know he had asked about this before. But if you don;t want to engage with him again then there is no need to.
Perhaps he needs more reassuring, perhaps he needs to understand the concept better with some background, perhaps he is resistant to ideas that don't come from him.
I have no idea.

That’s why I’m usually staying out of these threads.. lol It was a different OP, i was just using him as an example how a good advice goes unused until the person who asks gets some more knowledge&experience to take it

The point I was trying to make, the heavy hitters as you called them probably also got bored explaining the same basics many times. So now it’s your turn

freilona wrote: ↑So now it’s your turn

Boy are future posters going to be disappointed

Quentin5 wrote: ↑ Boy are future posters going to be disappointed

Well we’re not financial advisers here Imagine you met an acquaintance whom you don’t know that well for dinner. And he goes, “I’ve never been to this restaurant, but I’m rather hungry and I really like chicken. So I’m gonna order chicken soup, chicken stew, rotisserie chicken, fried chicken and grilled chicken. What do you think?”

freilona wrote: ↑ Well we’re not financial advisers here Imagine you met an acquaintance whom you don’t know that well for dinner. And he goes, “I’ve never been to this restaurant, but I’m rather hungry and I really like chicken. So I’m gonna order chicken soup, chicken stew, rotisserie chicken, fried chicken and grilled chicken. What do you think?”