Checking in on the Tangerine Portfolio returns, plus the Weekend Reads.

It has been a while since we checked in on the Tangerine Portfolio returns. They are simple but wonderful index-based mutual funds. The funds invest in large cap Canadian stocks, US stocks and International stocks. They manage the risks by replicating a core Canadian bond index. The portfolios offer a very decent benchmark for those invested in Canadian Robo Advisors, their own ETF portfolio or a mix that includes individual stocks.

I’ve often referred to them as the first Robo Advisor in Canada. If you choose that route, investing in the Tangerine Portfolios can be a complete digital experience. Of course you can also pick up the phone to speak with an investment advisor during business hours.

But I had asked the question – is Tangerine a Robo Advisor? The answer came back a resounding no as a result of my very extensive and scientific Twitter poll 🙂

I guess you have to offer ETFs to be considered a Robo Advisor. 🙁

Related post: What and who are the Canadian Robo Advisors.

We can observe a lot by watching.

Yes I borrowed that from Yogi Berra. And we can apply that learning and watching with respect to the Tangerine Portfolios. There are so many investment lessons as told by way of one Tangerine table.

The recent numbers available on the Tangerine site are to the end of June 2020. As a comparison point here are the portfolio returns to end of 2019. Of course 2019 delivered a very robust year for investors.

And then 2020 happened. Stock market corrections can be the great equalizer. Here’s the Tangerine Portfolio returns to end of June 2020. Be sure to check out the inception dates as well.

Here’s the link to the Tangerine performance page.

Asset Allocation.

• Balanced Income 30% stocks – 70% bonds.
• Balanced 60% stocks – 40% bonds.
• Balanced Growth 75% stocks – 25% bonds.
• Equity Growth 100% stocks.
• Dividend Growth 100% stocks.

We see the most conservative Balanced Income Portfolio leading the way through the recent stock market correction. It’s up 4% in 2020. Even the Balanced Portfolio is positive for the year. Over a one year period all of the portfolios have delivered positive returns. Well except for that Tangerine Dividend Portfolio that has been a stinker.

I’ll be back soon to look under the hood of the juicy dividend edition. Of course we have to give investment strategies lots of time to do their thing. I still really like that index methodology.

The Balanced Income Portfolio only fell by 10.4% in the recent stock market correction. The Equity Growth Portfolio was down by over 30%.

All said, the 10 year numbers show us that investors were rewarded (over longer periods) for taking on additional risk.

July performance update.

And here’s the recent update for the Tangerine Portfolios, to end of July 2020. When you look at the numbers, it’s as if nothing ever happened.

Will the traditional Balanced Portfolio cut it?

That is a question of the day. Will a traditional mix of stocks and bonds cut it moving forward? Do your own research. I had offered up a more well-rounded Balanced Portfolio in a previous post.

The New Balanced Portfolio.

Certainly gold and bitcoin are having their day as I outlined in my recent MoneySense Weekly wrap post. US long term treasuries have continued to punch above their weight as risk managers.

More Weekend Reads.

Thanks to Mark at myownadvisor for why you should leave DSC funds for good. Mark also looks at all-in-one funds, one ticket and more. And thanks to Mark for a mention in his Weekend Post.

On DSC funds I had recently posted on my letter to the Ontario Securities Commission.

Milliondollarjourney looks at the incredible hot potato portfolio.

And on the lighter side Chrissy at eastleepbreathefi suggests it’s the prefect time for a DIY haircut.

Ha, no way Chrissy, no haircuts during COVID for this guy. Recently inspired, I may not get clipped for years to come.

My ‘hairspiration’ is The Dude. Not sure if I’ll go for the robe.

I’ve already surpassed the mess of hair in my profile pic.

Always inspiring Fritz and the Mrs. are off on a road trip. Here’s The Great Escape.

And we’ve seen this movie before …

And many are calling for any US recovery to lag.

Here’s John Mauldin with the European Resurgence.

Forget the 4% rule.

Don’t use the 4% rule, use guardrails instead.

Agreed …

On MoneySense Jonathan Chevreau also asked is the 4% rule obsolete?

And here’s an article (and study link) that suggests that when a stock is added to the S&P 500 the stock price goes down over time, not up. That is a more recent event. Inclusion in the most copied index used to lead to a price increase.

Erica Alini details how the pandemic is luring Canadians into the stock market. That article suggests Wealthsimple has seen a 24% increase in clients, while WealthBar has seen a 10% increase. The numbers for Wealthsimple trade and other discount brokerages are even more exaggerated.

In addition to my MoneySense weekly, I am also a regular contributor for the popular millindollarjourney. Here is Calculating Your Adjusted Cost Base.

On findependencehub John DeGoey looks at the value of advice. Advisor’s Alpha.

And Ben Carlson ‘asks’ why would anyone own bonds right now?

Thanks for reading. Shares of this post are appreciated.

Use the Tangerine Portfolio returns to benchmark your performance. And we’ll see you in the comment section.

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Dale