This is the year end result of my hypothetical portfolio I started on May 1: -1.3% (including dividends).
It’s not especially spectacular or particularly bad, but it is much worse than the Canadian, American and EAFE markets did. In addition to the negative performance, had I actually bought these ETF’s, I’d also be hit with a tax bill for the distributions. Here’s more information on this topic.
Overall I’m unhappy with this passive portfolio. If not for these distributions I would give this setup a chance and track it for at least a couple of years longer. However this complete lack of control over the buys and sells of holdings within the ETF – and tax implications of this – makes me want to continue stock picking on my own.
So this is the end of the ETF Portfolio v. 1. I will work out a new passive hypothetical portfolio. This time I’ll make it a benchmark against which I’ll track my own results, as opposed to making random picks across the regions.
CDN Composite (XIC) – 45%
CDN S&P 500 (XSP) – 25%
CDN MSCI EAFE (XIN) – 30%
Approximately $10,000 one-time.