You enter one ticker symbol, you press buy and instantly you own the stock markets around the world. U.S. markets, Canadian, European, plus the stock markets of the far east and Australasia, plus those of emerging markets. You own a global portfolio with diversification that is hard to beat. The global portfolio is then managed for you. There’s nothing for you to do but add money. The fees are about one tenth or less of the traditional Canadian mutual fund. Given that, they beat the portfolio pants off of most investments. You can also select a global portfolio that matches your risk tolerance and investment goals. Asset allocation ETFs are an incredible option for retirees and those who are building wealth.
Cut The Crap Investing is the only site or blog in Canada that tracks the leading asset allocation ETFs in Canada. I track the individual ETF providers and their suite of asset allocation ETFs. I then compare and rank the returns of all providers by risk category, from the conservative bond-heavy income models to the more aggressive and growth-oriented all-equity models. I have now updated the total returns (including dividend reinvestment) to the end of August 2024.
Check out the asset allocation ETF portfolio page.
If you have any questions, or want assistance on how to move to the asset allocation ETFs feel free to reach out by using the Contact Dale button. I am more than happy to help. And again, you can certainly use these portfolios in retirement.
The Sunday Reads
While this past week saw a retreat in stock markets, this post is very relevant. Don’t fear investing at all time highs. In fact it offers a boost.
Not that we go looking for all time highs to invest, but the chart shows that there is no need to market time – waiting for lower and ‘better’ prices.
- Higher prices are good
- Lower prices are good
- Stagnant prices are good
So, uh, the above suggests investing is good. Add money on a regular schedule. Set it and forget it. Consistency is one of the most important forces or events when building wealth.
You can buy ETFs for free at Questrade.
Buy low (valuation) sell high (valuation).
I’m all for buy and hold, but the above lesson from Mr. Buffett is useful for retirees. Ask folks to give you $3 for $1 of earnings. Your buyer is buying future growth prospects. You’ll turn prospects into current income. Not a bad trade for part of your portfolio.
Essentially, this is just called rebalancing.
I have trimmed some Apple over the last few months.
At Findependence Hub, a theme that I’ve repeated forever on this blog – how U.S. stocks can boost your returns and add much-needed diversification.
Where’s inflation?
Also on the Hub, the curious case of missing inflation.
At Tawcan Bob shares his experience moving from TD and Questrade to Wealthsimple. If you move to Wealthsimple, keep in mind that there can be sizable fees when buying U.S. Dollar assets due to currency conversion charges. That said, you can buy Canadian Dollar denominated U.S. holding ETFs. You will then face the withholding taxes on U.S. dividends, but it is a minor event in the grand scheme of things.
At Banker on Wheels they are challenging the idea of stocks for the long run and why very early retirement may backfire.
Looking to the weekly review at Dividend Hawk, we see the dividends received. Also, Hawk closes out Intel and starts a position in my favourite oil stock, Canadian Natural Resources (CNQ.TO). Energy is getting hit hard these days, there could be very good long term value to be had. I added to my CNQ in the TFSA last week. The spare change went into a bitcoin ETF, as always.
At stocktrades you’ll find Dan’s favourite Canadian stocks for 2024 and beyond.
GenYMoney offers an August 2024 portfolio update.
Tweet week …
Updated rates at EQ Bank …
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ETFs / Stock Portfolios / Retirement / Wealth Creation
Thanks Partners
Earn a break on fees by way of many of these partnership links.
CANADA’S TOP-RANKED DISCOUNT BROKERAGE
Cut the Crap Investing readers can earn a break on fees at Questrade by way of that partnership link. At Questrade, you can buy ETFs for free. It’s a great place to build your stock portfolio.
Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and low-fee ETF portfolios all at one shop.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 2.5% and 3.0%. You’ll find some higher rates on GICs up to 4.50%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For Augutst we received $40.11 in cash. You can select 3 categories for 2% cash back.
That cash will go into my TFSA.
While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me (try to) pay the bills for this site. But they don’t, ha. That will allow me to keep this site free of ads and easy to read.
I loved your Robo Investment returns article. Do you plan to update the article after the end of the calendar year?
Hi David, I was borrowing from Rob Carrick in the Globe & Mail, and he has not updated in a while. I will see what I can do by way of published returns from the providers. Justwealth will still be way out in front.