Investing

Best ETFs for a 100% Equities Portfolio

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  • Jun 5th, 2018 2:14 am
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes

Best ETFs for a 100% Equities Portfolio

Any ideas? I think XAW is the top contender for TFSA but I feel there's too much EAFE in there (even though this may be global market cap weighting). For RRSP VTI/VXUS, and taxable HXS. I'm just trying to simplify my portfolio. VGRO would be good but I don't see the point in bonds with an EQ Bank account and rising rates from 0-1% and the Vanguard asset allocation series has too much Canada (with unspecified rebalancing schedules).
59 replies
Deal Addict
Jan 18, 2014
1460 posts
477 upvotes
Rouyn-Noranda
Hobotrader wrote: Any ideas? I think XAW is the top contender for TFSA but I feel there's too much EAFE in there (even though this may be global market cap weighting). For RRSP VTI/VXUS, and taxable HXS. I'm just trying to simplify my portfolio. VGRO would be good but I don't see the point in bonds with an EQ Bank account and rising rates from 0-1% and the Vanguard asset allocation series has too much Canada (with unspecified rebalancing schedules).
Is it worth it for you to have a $US account?
Deal Addict
Jan 20, 2016
2028 posts
1008 upvotes
Houston, TX
Top of this list is leveraged, VIX or oil-based etf...Maybe good for trading, but I highly doubt it would work for long-term investing as for OP...

I'd stick to XAW and call it a day. It even has 10% for EM and also small-caps as well, quite diversified imo. Yes, you could tweak it 5-10% and gain. maybe, 0.5-1% yearly, or loose...

Look here, some years EM overperformed S&P, some other small caps, and on another S&P beat them all ...

https://www.bogleheads.org/w/images/d/d ... eturns.png
Make the face great again
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
John47 wrote: Is it worth it for you to have a $US account?
Already have USD in my RRSP @ Questrade (Norbert's gambitting). It's to skirt the dividend withholding taxes (0.3% at a 2% dividend rate). I'd probably do 70-80% US with remainder in VXUS for that portfolio (so more dividends preserved).
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
asa1973 wrote: Top of this list is leveraged, VIX or oil-based etf...Maybe good for trading, but I highly doubt it would work for long-term investing as for OP...

I'd stick to XAW and call it a day. It even has 10% for EM and also small-caps as well, quite diversified imo. Yes, you could tweak it 5-10% and gain. maybe, 0.5-1% yearly, or loose...

Look here, some years EM overperformed S&P, some other small caps, and on another S&P beat them all ...

https://www.bogleheads.org/w/images/d/d ... eturns.png

I don't have much faith in markets outside the USA, definitely not in Canada.

I think I already know the answer is XAW but I guess I can just pair it with VUN to get more US exposure (TFSA). I looked into XAW and saw 10% Japan...I like EM actually (catch-up effect of capital), I just worry that the foreign developed markets won't be pulling their weight (Canada included in this group even though it's technically not foreign from my perspective).
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
porticoman wrote: asa1973, would you keep XAW over XWD or perhaps VVL?
XWD and VVL are twice the MER as XAW...I probably wouldn't want to pay twice as much with a slight difference in tweaking...
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
VVL more compelling but you'll never know whether growth or value will win out...Theoretically value should but since everyone knows about it now, will it in the future? I don't know if I'll pay twice as much. Though I do hold VBR (0.08% MER small cap value US)...I'm just looking to simplify my life. Spent way too much time in this area only to see losses or sub-optimization. Better to fire and forget and build career skills since most of my money had come from and comes from my job =/...
Deal Addict
Jan 20, 2016
2028 posts
1008 upvotes
Houston, TX
Hobotrader wrote: I don't have much faith in markets outside the USA, definitely not in Canada.

I think I already know the answer is XAW but I guess I can just pair it with VUN to get more US exposure (TFSA). I looked into XAW and saw 10% Japan...I like EM actually (catch-up effect of capital), I just worry that the foreign developed markets won't be pulling their weight (Canada included in this group even though it's technically not foreign from my perspective).
1. XAW do not has Canada exposure
2. Going 100% USA - just look on the table of returns for 200x when ex-USA beat USA few years in a row (and Canada was also ahead those times).

You could guess right and USA will outperform non-USA, or maybe not...From PE/CAPE/shmape prospective USA more" pricey" right now, so overweighting to it could be not a good idea...
Make the face great again
Deal Addict
Jan 20, 2016
2028 posts
1008 upvotes
Houston, TX
porticoman wrote: asa1973, would you keep XAW over XWD or perhaps VVL?
If I'd go to all-world it would be rather VT (but you'd need USD account for that imo)

However I actually love XAW because it's already tweaked enough (a little bit overweighted in EM and small and midcaps) :)
With a small touch of XIC ;) I'm getting "all-world" coverage without being strictly cap-based...

And it's simple as it could be imo.
Of course it's one of many possible slices and you could do it dozen other ways (sector etf/mfs, VT etc) but I'd prefer to not overcomplicate it...
Make the face great again
Deal Addict
Jul 27, 2017
2180 posts
938 upvotes
Hobotrader wrote: XWD and VVL are twice the MER as XAW...I probably wouldn't want to pay twice as much with a slight difference in tweaking...
on the best [personal choice] selected ETF over the past 5yrs, 10yrs, 15 yrs to today, does the MER really matter when it comes to overall performance + the paid out distributions/dividends = what goes in my pocket is all that matters, and besides one can jump in & out of an ETF, add to or reduce at anytime - like anything else, its not a sit back & forget investment.

ETF managers are forever rotating the weight & selection of the holdings
Last edited by Guest37273939 on May 21st, 2018 4:44 pm, edited 1 time in total.
Member
Aug 20, 2016
371 posts
330 upvotes
i looked at the results.
the united states is half the stock market of the world,
as we saw 10 years ago, it goes down nothing in the world will hold up.
i would buy the xuu total us market or the sp 500 vfv etf.
[OP]
Sr. Member
Jun 10, 2013
588 posts
255 upvotes
isd9999 wrote: i looked at the results.
the united states is half the stock market of the world,
as we saw 10 years ago, it goes down nothing in the world will hold up.
i would buy the xuu total us market or the sp 500 vfv etf.
I ran this analysis just last night...It is the capitalist motive engine of the world. I wanted to use XAW since it was simple but I couldn't justify the EAFE from the data. Emerging markets are fine but volatile but this is for a long-term hold...

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