ETF Model Portfolios

This is the most cost effective way to create a sensible investment portfolio. Investors will require a working knowledge of the individual assets, asset allocation and the risk levels of their investment portfolio. You will need to be comfortable doing your own buying and re-balancing of the stock and bond funds. The creation and managing of an ETF portfolio is quite simple, but it’s important that you have a working knowledge of stocks and bonds and the associated risks and return potential. Getting your investment knowledge up to the required level is more than ‘worth it’. But if managing your own portfolio is not for you, see the Robo Advisor and Funds section on this site. You can also explore the all in one fund, One Ticket Solutions from Vanguard, iShares and BMO. These funds are completely diversified and rebalanced. The annual fees are in the range of .20%. Here’s some help on how to select the ‘right fund’.

Vanguard LogoBMO LogoiShares Logo

To create an ETF portfolio you would open a discount brokerage account with your bank or source an independent discount brokerage. The management expense ratio can be less than .20% for a Balanced Portfolio.  Investors will also pay trading costs and potentially annual account fees. Compare that to Canadian Mutual Funds at an average of well over 2%. No contest.

This MoneySense article, Canada’s Best Online Brokerages 2017, details the leading discount brokerage offerings in Canada.

These are the four building blocks for a sensible, well diversified portfolio. Portfolios are typically re-balanced to the original percentages of stocks and bonds and regions on an annual basis, or when the allocations move out of balance.

AssetAllocationSnip

You may also choose to add Canadian and US REITs plus US and foreign bonds for added diversification.

*Please know all tax implications, withholding tax implications, currency risk and currency conversion charges and all fee considerations. Talk to your discount brokerage about the possibility of opening US dollar RSP (plus RIF, LIF, LIRA, TFSA and taxable accounts) you would then be able to separate your Canadian and US holdings. For more on US and International withholding taxes on dividends please have a read of this paper from PWL Capital.

Send questions to cutthecrapinvesting@gmail.com.

Please note, these portfolios are not recommendations. Please ensure you understand your investments and the risks associated with stock and bond portfolios.

Proper Alignment For Portfolio Headers Snip

Portfolio 1 Full Snip

Here’s my overview of the Balanced Portfolio With More Bonds.

Balanced Portfolio More Stocks Snip

Portfolio 2 Full Snip

Here’s my overview of the Balanced Portfolio With More Stocks.

Balanced Growth Risk and Name Full Snip

Portfolio 3 Holdings Full Snip

 Here’s my overview of The Balanced Growth Portfolio. The Sweet Spot

All Stock Growth Risk and Name Full Snip

All Stock Growth Portfolio Assets Snip

Here’s my overview Investing In The All Stock Portfolio. Take On The Risk If You Can.

Greater Growth Portfolio Full Risk and Name Snip

Greater Growth Portfolio Assets Snip

Here’s my overview, Beat The Market With The Great Growth Portfolio.

Greater Income Portfolio Risk and Name Full Snip

Greater Income Portfolio Assets Snip

Here’s my overview of The Greater Income Portfolio.

*Investors may also choose to also add BMO’s Canadian Banks and Canadian Utilities Covered Call ETFs.

Dividend Growth Risk and Name Full Snip

These companies pay out generous (juicy) dividends while having increased their dividends over a 5-year period. The smart beta indices include dividend health screens.

*Investors may choose to add International Dividend Payers.

Dividend Growth Higher Yield Full Assets Snip

Dividend Aristocrat Risk and Name Full Snip

Canadian companies have increased their dividends for 5 years or more. US companies have increased their dividends for 25 years or more.

*Investors may choose to add International Dividend Payers.

Dividend Aristocrats Assets Full Snip