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 Managed Portfolio section on this site. You can also explore the all in one fund, one-stock ticker solutions from Vanguard. These funds are completely diversified and rebalanced. The fees are .22%.

Vanguard 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 rebalanced to original percentage of stocks and bonds and regions on an annual basis, or when the allocations move out of balance.

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*Please know all tax implications, currency risks and currency conversion charges and  all fee considerations. Talk to your discount brokerage about the possibility of opening US dollar TFSA, RSP (plus RIF, LIF, LIRA etc.) accounts, you would then be able to separate your Canadian and US holdings. You can also inquire about US dollar non registered accounts. Send questions to cutthecrapinvesting@gmail.com.

moneysense.ca is also a great resource for ‘all of the above.’

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

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Portfolio 1 Full Snip

 

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Greater Growth Portfolio Full Risk and Name Snip

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Greater Income Portfolio Risk and Name Full Snip

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*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.

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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.

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