The utility sector is known for its defensive qualities, providing a stable investment option in times of market uncertainty. By overweighting defensive sectors, investors can lower the volatility (risk) of their portfolios. Many will refer to Canadian utilities as ‘bond proxies’ due to their steadiness. However, the true strength lies not in the dividends they […]
Canadians should avoid most mutual funds.
Canadians pay some of the highest investment fees on the planet. Most of the Canadian mutual funds charge very high fees. Those fees directly reduce your returns. Too much of the investment returns end up in the wrong pockets. The very good news is that in 2025 you can move to very good, very simple […]
The asset allocation ETFs. The best funds available in Canada? Plus, the Sunday Reads.
When the Canadian asset allocation ETFs were introduced several years ago, the investment community hailed them as “game changers”. That is, the final nail in the coffin for high-fee / low-performance Canadian mutual funds. The asset allocation ETFs are well-diversifed, managed global portfolios available at 5 risk levels. The fees represent about a 90% off […]
Economists exist to make astrologists look good, on the Sunday Reads.
Warren Buffett (the world’s greatest investor) once exclaimed that ‘if your company has an economist on the payroll it has one too many employees’. And of course you can look to the headline of this post for another telling description of the use of economics in making investment decisions. We can put any ‘market guesser’ […]
The core ETF portfolio performance on the Sunday Reads.
It’s that time once again to check in on the ETF portfolios on Cut The Crap Investing. These simple but more than effective portfolios allow investors to buy the stock markets of the developed world with just a few clicks, while the stock market risk is managed by the Canadian bond market. It’s a very […]
Why are most dividend ETFs underperforming? Plus, the Sunday Reads.
Canadians are sitting on a mountain of cash. Higher rates for savings accounts and GICs were too juicy too resist. But with rates coming down, these income lovers have been moving funds back to struggling dividend ETFs and their favourite dividend stocks. After a brief period of catch up outperformance, many dividend ETFs are lagging […]