Investing

Market timing step 2: going back in

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  • Oct 23rd, 2020 5:29 am
[OP]
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Aug 4, 2014
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florenntina wrote: Do you prefer any particular dividend ETF? I analyzed a few of them and finally started a position in ZDV.
Yes I looked at a bunch and short-listed HAL, ZDV, ZWC and VCE. The last one is not dividend ETF per se, but loved its holdings - 56 mostly blue chip companies, almost like TSX 60 index - and tax-efficient distributions. With a tiny 0.06% MER it’d be my top choice if the yield was at least 3.5% - maybe it will be when I finally get the cash to deploy Face With Tears Of Joy And my test dividend portfolio almost recovered, so buying individual stocks is still in the cards for me :)
Btw. proudly owner of 10% ZAG here 🤪
Yay congrats, proud of you! Hugging Face Too bad my BHK dropped a few % since I bought it (at the top! Face With Tears Of Joy), but all bond ETFs have been going down (I didn’t delete BND, IEF and TLT from my watchlist yet, so can finally see them all red when QQQ and/or VTI are green Face With Tears Of Joy) But we did what needed to be done, so now can just ignore them.. :)
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Nov 27, 2019
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freilona wrote: Yes I looked at a bunch and short-listed HAL, ZDV, ZWC and VCE. The last one is not dividend ETF per se, but loved its holdings - 56 mostly blue chip companies, almost like TSX 60 index - and tax-efficient distributions. With a tiny 0.06% MER it’d be my top choice if the yield was at least 3.5% - maybe it will be when I finally get the cash to deploy Face With Tears Of Joy And my test dividend portfolio almost recovered, so buying individual stocks is still in the cards for me :)



Yay congrats, proud of you! Hugging Face Too bad my BHK dropped a few % since I bought it (at the top! Face With Tears Of Joy), but all bond ETFs have been going down (I didn’t delete BND, IEF and TLT from my watchlist yet, so can finally see them all red when QQQ and/or VTI are green Face With Tears Of Joy) But we did what needed to be done, so now can just ignore them.. :)
Same here. As soon as I sold ZPR and bought ZAG, they started to go in the opposite directions Face With Tears Of Joy. Just to let you know, I plan to add more ZDV soon, just be patient pls if you think to jump in Face With Tears Of JoyFace With Tears Of JoyFace With Tears Of Joy
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You are misreading my point entirely. I'm pointing out excess bullishness out there as a possible contrary indicator, try to keep up.
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florenntina wrote: Same here. As soon as I sold ZPR and bought ZAG, they started to go in the opposite directions Face With Tears Of Joy. Just to let you know, I plan to add more ZDV soon, just be patient pls if you think to jump in Face With Tears Of JoyFace With Tears Of JoyFace With Tears Of Joy
Nice I just bought 400 zdv. Seems cheap.
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@freilona @florenntina @kilburn305

Just curious, so hold your fire, why you choose to invest in the ETF rather than invest directly in some of the top companies that ZDV holds and outperform the ETF? Chart. Going through the ZDV current holdings, there are a bunch of companies that I would not invest in atm i.e. #2 POW, BNS, GWO ... or ever POW, GWO & QSR ...

To me, investing directly in the companies is cleaner and simpler.
[OP]
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@MrMom , I haven’t invested in ZDV yet as my non-reg GIC will mature in December, so I’m still watching/considering individual stocks as well (and already own BNS, like yourself, unfortunately :facepalm: ) Since I’ll be buying with at least 60K in January, i can start with 4 individual stocks (current top yield picks from my watchlist would be ENB, BCE, TD and T) and then add 1 additional stock per year afterwards.

But with smaller amounts I’d go with ETFs (and ZDV has better holdings IMO as for example the most popular choice, VDY) So depending on how things are in January, I might go with these or different stocks - or, if there’s another downturn at the time, just buy an ETF for simplicity (I wish they were more consistent with distributions though.. sigh)
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MrMom wrote: @freilona @florenntina @kilburn305

Just curious, so hold your fire, why you choose to invest in the ETF rather than invest directly in some of the top companies that ZDV holds and outperform the ETF? Chart. Going through the ZDV current holdings, there are a bunch of companies that I would not invest in atm i.e. #2 POW, BNS, GWO ... or ever POW, GWO & QSR ...

To me, investing directly in the companies is cleaner and simpler.
Agree regarding holdings but I find investing in ETF simpler and chipper in terms of transaction selling fees. Investing in individual stocks need more time, analyses, maintenance... Although some holdings of ZDV could be better, they currently fit the best with the rest of my portfolio comparing with similar ETFs.

I would like to set up my portfolio and forget about it most of the time, just balance it a 2-3 times per year. It’s pretty hard to do so with individual stocks and they are more risky. Any company can go to bankruptcy but not ETF, at least not high tradable ones with a big market capitalization.

Btw. I just discovered today Passiv and consider to give it a try: https://www.millennial-revolution.com/i ... or-passiv/.

Anyone any experience with it?
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DOL has finally broke resistance. I've sold, watch it run now. Don't generally shop there, but I hear they are busy.
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freilona wrote: @MrMom , I haven’t invested in ZDV yet as my non-reg GIC will mature in December, so I’m still watching/considering individual stocks as well (and already own BNS, like yourself, unfortunately :facepalm: ) Since I’ll be buying with at least 60K in January, i can start with 4 individual stocks (current top yield picks from my watchlist would be ENB, BCE, TD and T) and then add 1 additional stock per year afterwards.

But with smaller amounts I’d go with ETFs (and ZDV has better holdings IMO as for example the most popular choice, VDY) So depending on how things are in January, I might go with these or different stocks - or, if there’s another downturn at the time, just buy an ETF for simplicity (I wish they were more consistent with distributions though.. sigh)
I personally hate individual stocks. I swear they trade against you when you buy individual names. It's much harder for them to take out a whole index.

The transaction fees are really high to buy that many stocks. High fees and higher risk.

I have a question for you now and also @MrMom . Where do you recommend to park USD for yield and also hopefully no withholding tax on dividends in tfsa? I wish I was full CAD.... But still holding quite a bit of USD unfortunately.
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Sold my VUN today.
Posting this here because I'm a yuge fan of market timing.
Just one small (tiny) detail; I seldom get it right.

Or as my latest newest best girl friend says:

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Aug 16, 2015
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IrwinW wrote: Sold my VUN today.
Posting this here because I'm a yuge fan of market timing.
Just one small (tiny) detail; I seldom get it right.

Or as my latest newest best girl friend says:

why sell vun? it goes to infinity and beyond. nothing can match the money printer.
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Nov 27, 2019
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kilburn305 wrote: I personally hate individual stocks. I swear they trade against you when you buy individual names. It's much harder for them to take out a whole index.

The transaction fees are really high to buy that many stocks. High fees and higher risk.

I have a question for you now and also @MrMom . Where do you recommend to park USD for yield and also hopefully no withholding tax on dividends in tfsa? I wish I was full CAD.... But still holding quite a bit of USD unfortunately.
As far as I know, there is a tax on USD dividends in TFSA but not in RRSP. They should tax USD dividends automatically, "on the source" and you should receive "net" dividends in TFSA.
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kilburn305 wrote: why sell vun? it goes to infinity and beyond. nothing can match the money printer.
Sorry, didn't know that I needed your permission.

#sorrynotsorry
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kilburn305 wrote: I have a question for you now and also @MrMom . Where do you recommend to park USD for yield and also hopefully no withholding tax on dividends in tfsa? I wish I was full CAD.... But still holding quite a bit of USD unfortunately.
Invest in ADR of countries with no withholding tax (UK, Brazil, India, etc.). See here for some ideas.

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