Investing

What's in your BORING portfolio?

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Dec 12, 2009
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Deepwater wrote: Your ability to rebalance depends on your temperament and commitment to maintaining a balanced portfolio, and understanding why you made your choice. A written Investment Policy Statement can assist in maintaining your resolve. Understanding investing history, how different geographies, asset classes and management styles underperform or outperform over time (sometimes for extended periods) leads to an understanding of the reasons for diversification. Authors like William Bernstein, Charley Ellis, Rick Ferri and Paul Merriman have written extensively on the subject.

One tactic is to not rebalance into risky assets. If your equities get above your target, then your portfolio risk and volatility will increase and you should rebalance. If there is an equity crash, if you just hold your existing assets, equities have always recovered. Rebalancing will bring you back to your target allocation faster, but not everyone chooses to do it,

In his book All About Asset Allocation, Rick Ferri wrote about an elderly client whose answers on a risk tolerance questionnaire indicated a high tolerance for risk and volatility. Rick did not think that was appropriate, so he reframed the issue from percent loss, to dollar value loss in a deep equity bear market. That made the issue more tangible and the client recognized their ability to handle volatility was not as high as they originally thought. You never know how you will respond to a crash until you experience one.

I use +/- 5% as my rebalancing threshold. In the past 10 years I have never reached that threshold, not even in March 2020.
This is not applicable for me at the moment. Until yields normalize to a more reasonable value, I will not be even thinking about thinking about holding bonds in any capacity. When that day does arrive, I will be thinking about asset allocation ETFs like _GRO, _BAL...
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May 5, 2008
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What’s a good dividend paying etf for non registered account?
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Dec 12, 2009
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airmail wrote: What’s a good dividend paying etf for non registered account?
In my opinion, there isn't any. The MER for a good well rounded ETF like CDZ at 0.66% is too high. XDIV is the only ETF with a low MER but it is 60% financials. With that kind of concentration, might as well buy a couple of banks, a utility and forgo the ETF. BMO has a bunch of covered call ETFs ZW_ which sacrifice capital gains for distribution. It is a bad trade off.
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Im about to use WealthSimple's robo-advisor. Still relatively young and I'll be doing an aggressive portfolio. Wish me luck 🤞

Ive also been doing some self-directed stock buying on my own and after months of seeing Red and getting rid of some "fat", Im finally seeing Green.

For those starting and dont know what to do but hard-headed enough not to listen: at the very least look into Blue Chip stocks and keep your meme/YOLO stonks to a minimum (I personally hold 10% YOLO stocks because...who knows right).
Jr. Member
Oct 15, 2008
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vivmk20 wrote: @TuxedoBlack @will888 Do you think it is advisable to invest in US Dividend ETF (SCHD) in a taxable account as I have large amount in USD and my RRSP and TFSA is maxed out. Even with 15% tax withholding, I may come ahead.

No point moving the USD to CAD then invest inDGI. I can also look at growth stocks in US which I already have ( AAPL , MSFT).
That’s what I do, AAPL, AMZN, SQ, MSFT, V, etc in non registered
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Nov 16, 2013
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Thanks. Let me ask the question differently.

I am aware of the tax consequences hence wanted to check if their is any US ETF which makes sense for taxable accounts or growth accounts with no or minimum dividend payout US companies outside of technology to utilize USD.
will888 wrote: I will refrain from telling you whether to buy or not buy this particular ETF as I have no idea what you have already invested in. I can comment on the taxation piece. In a non registered account, foreign dividends (US and elsewhere) are treated as ordinary income for taxation purposes. The US withholding tax on dividends is 15% and this would be reflected in the T-3 statement for a SCHD investment. There will be a foreign tax credit that will offset the withholding tax so that you do not receive double taxation for the same income. If this ETF were held in a non registered account which receives no immediate taxation, there will be no offset for the foreign tax.
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vivmk20 wrote: Thanks. Let me ask the question differently.

I am aware of the tax consequences hence wanted to check if their is any US ETF which makes sense for taxable accounts or growth accounts with no or minimum dividend payout US companies outside of technology to utilize USD.
I don't have any US ETFs, so I am not well schooled on them. I would imagine that most would have some component of dividend. Even tech stocks like AAPL and MSFT have a dividend. You have to be careful not to focus too much on a bit of taxation and forgo what otherwise are good investment options.
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vivmk20 wrote: Thanks. Let me ask the question differently.

I am aware of the tax consequences hence wanted to check if their is any US ETF which makes sense for taxable accounts or growth accounts with no or minimum dividend payout US companies outside of technology to utilize USD.
What's your reason to purchase US-listed ETFs? Are you converting CAD $ to US $?

I'm not too familiar with US-listed ETFs as I don't do Norbert's gambit as it's too complicated. I like to keep things simple.

If I had to buy US ETFs, I'd go with something from Vanguard that buys the entire world market, and not focus only on dividend-paying ETF.
Be Balanced. Be Diversified. Stay Invested.
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Nov 16, 2013
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I get paid in US and have large amount in USD. With current CAD rate, I am not keen to transfer my USD to CAD.
TuxedoBlack wrote: What's your reason to purchase US-listed ETFs? Are you converting CAD $ to US $?

I'm not too familiar with US-listed ETFs as I don't do Norbert's gambit as it's too complicated. I like to keep things simple.

If I had to buy US ETFs, I'd go with something from Vanguard that buys the entire world market, and not focus only on dividend-paying ETF.
Sr. Member
Sep 28, 2011
806 posts
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Winnipeg
Janus2faced wrote: my long term holds for the past 11 years are just two, SBC & TQQQ, there isn't anything else in my portfolio other than one single position
TQQQ for the past 11 years, nice, gutsy, but nice. Question, did you hold a percentage (50/50, 66/33, 75/25, etc ) of SBC vs TQQQ and then re-balance annually or did you ride the waves and do a complete switch out between the two?

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