Yesterday we had a look at the Canadian high dividend approach that has returned to its market-beating ways. An interesting and popular approach for investors who build their own stock portfolio is the BTSX index. That ‘index’ suggests that you buy the top ten highest yielding stocks that you’ll find in the TSX 60. Keep in mind that it is a hypothetical index, there is no ETF. If you like the idea you would build your own stock portfolio. It is an incredibly simple approach that (also incredibly) has a history of beating the market – the TSX Composite. I had a look at BTSX for 2021 and found that the Beat The TSX Portfolio is also beating Vanguard’s High Dividend ETF VDY.
Here’s the post from yesterday on the big Canadian dividends. They have returned to their winning ways.
And for more on the Beat The TSX Portfolio check out the site that tracks the returns and demonstrates that market beat back to 1990. The current yield is also updated and shown.
Vanguard’s VDY vs the market
A good representation of the Canadian big dividend approach in ETF form can be found by way of that Vanguard ETF – ticker VDY. XIC is the ETF for the TSX Composite.
As we noted yesterday, after a rough 2020, the big dividend approach is back. It was only natural that I take a look at the BTSX portfolio to see how it compares to the impressive turnaround for VDY.
Here’s a previous post on the Beat The TSX Portfolio and recent returns.
Beating Vanguard too
And in 2021, the BTSX is out to beat Vanguard’s VDY. The period is for 2021 to the end of September.
And here’s the assets and returns.
Once again, investing in Canadian energy stocks has been a great idea in 2021. The oil and gas producers have delivered the most torque. But the pipelines are more than pitching in. Financials are having a wonderful 2021.
BTSX has offered a great approach. An investor might certainly choose to go that route. In search of greater diversification they might consider the Canadian Wide Moat stocks that add a few sectors.
And as always, greater diversification is paramount. Canadian stocks are just one weapon. You may choose to build a stock portfolio, you may decide to go that ETF route. Consider the new Balanced ETF Portfolio for ideas. You’ll also need a solid financial plan.
To buy stocks or ETFs (you can purchase ETFs at no cost at Questrade) you’ll need to open a discount brokerage account.
Anyone can be a Couch Potato Investor
And there are many ways to build a sensible, low-cost portfolio. At MoneySense, we’ve updated the Canadian Couch Potato section. Please have a read and share.
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The Sunday Reads
And yes, Canadians love their big dividends stocks, sometimes too much. On the weekend reads on My Own Advisor, Mark Seed looks at that Canadian home bias.
In 2019, I suggested that readers say goodbye to that investor home bias.
On the retirement front FiPhysican suggests that you leave some wiggle room. Things might not turn out as expected. We need a margin of safety.
And on The Humble Dollar, know your number for retirement. Then add in that wiggle room. 🙂
On MoneySense, Jonathan Chevreau looks at the rule of 30, and what does that have to do with retirement?
And in my weekly for MoneySense I look at the first bitcoin ETF in the U.S., more on the earnings front, bond investors having a rough go, and more.
The inflation watch
And inflation in Canada continues to stick around and move up. Here’s the headline from Pete Evans.
And the chart.
I think it’s important to hedge energy and food inflation. Our energy investment gains could buy well over 100,000 kms of driving, so far. That portfolio odometer might keep on clicking. Just my opinion, but I think we are in the early stages of the energy rally. Investors can also look to food suppliers and the grocers that you’ll find in that wider moat portfolio.
On Million Dollar Journey have a read of investing in Canadian retail stocks.
On a Wealth of Common Sense, wealth management is coming for crypto.
The widespread adoption of and acceptance of bitcoin as a portfolio asset seems inevitable. Family offices such as Northland Wealth Management have been putting bitcoin to work for years.
Thanks for reading ‘The Beat The TSX Portfolio is also beating Vanguard’s High Dividend ETF VDY’.
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