“Lazy Canadian ETF” Portfolio Update – Almost 4 Years Later $$
This is known as the “Couch Potato” approach, and you can read about my hypothetical portfolio here. I started tracking it in May 2007 and finished a year and a half later.
This “lazy” method seems to be popular in Canada, and is profiled in many financial magazines almost every year. Truly, it’s the land of the extremes – either full-on penny stock speculation, or boring index fund investing 🙂
Here’s a look at how that initial $10,000 is doing now. Note:
- I chose not to re-invest the distributions.
- Profit/loss includes paid out distributions.
- Commissions are excluded because they’d be like $5 for the initial buy-in, doesn’t affect anything.
Click to enlarge
Here’s a visual representation of the same. I assume the “amount invested” is going down because of the inflation.
Components
CDN Composite (XIC) – 45%
CDN S&P 500 (XSP) – 25%
CDN MSCI EAFE (XIN) – 30%
Initial Investment
Approximately $10,000 one-time in May 2007.
Kat,
You should use the AIM methodology when undertaking a long-term holding strategy. I’m pretty sure I gave you the link a couple of years back.
jog on
duc
Duc,
yes, I remember and still have the link.
I wanted to revisit this portfolio because I get quite a few hits on the topic. The above allocation is a typical recommendation, so I just went with that at the time.
Kat,
Although it’s all water under the bridge, just work through the chart, using the calculator various buy’s/sells, and see how different your result would have been.
You’d be showing a significant profit I’ll be wagering!
jog on
duc