Author Topic: Check my Asset Allocation (CANADA)  (Read 1008 times)

powersuitrecall

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Check my Asset Allocation (CANADA)
« on: March 22, 2018, 02:41:51 PM »
Here's where I'm at right now:


                   RRSP      TFSA   TAXABLE
  -----------------------------------------
  EQTY-CAN   28%   VCN       VCN    VCN
  EQTY-US    26%   VTI-USD   -      -
  EQTY-INTL  26%   VXUS-USD  -      -
  Bonds-CAN  20%   VAB       VAB    -
  -----------------------------------------


Having 20% in VAB has always made me feel uneasy.  I've been considering introducing some exposure to high yield corporate bonds (XCB) and Canadian preferred shares (ZPR).  Thoughts?

I realize that going with VXUS-USD in my RRSP is not ideal (as it holds some Canadian stock).  Thoughts on alternatives?  Should I go with a TSX traded international ETF?

Note - I am holding only Canadian equity in my taxable account mostly because I have ~$20K in capitol losses from prior tax years which I can apply against future gains ... from my wild and crazy stock picking years (grrrr).

Dmy0013

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Re: Check my Asset Allocation (CANADA)
« Reply #1 on: March 22, 2018, 04:58:20 PM »
Are you following a Canadian Couch Potato model?

I follow his model portfolios and it looks like some pretty similar stuff

Perhaps addressing his website / model portfolios might be useful for you?

powersuitrecall

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Re: Check my Asset Allocation (CANADA)
« Reply #2 on: March 22, 2018, 06:14:37 PM »
Are you following a Canadian Couch Potato model?

I follow his model portfolios and it looks like some pretty similar stuff

Perhaps addressing his website / model portfolios might be useful for you?

Yep it's pretty much a CCP portfolio.  What do you mean by "addressing his website"?  Do mean to pose the question there?

I'm wondering if being exposed to more asset classes might be beneficial, namely corporate bonds and preferred shares.  Are there other asset classes to consider?  Short term bonds?  Mid-cap equities?  Emerging markets?  I was hoping to get some perspective on what I might consider for further diversification.



Le Barbu

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Re: Check my Asset Allocation (CANADA)
« Reply #3 on: March 22, 2018, 07:37:52 PM »
You already hold 1 more asset class than me (bonds!)

I would replace VAB with XAW in TFSA ( but, thats just me!)

Good luck!

powersuitrecall

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Re: Check my Asset Allocation (CANADA)
« Reply #4 on: March 23, 2018, 09:57:32 AM »
You already hold 1 more asset class than me (bonds!)

I would replace VAB with XAW in TFSA ( but, thats just me!)

Good luck!

I've tried to wrap my head around 100% equities, but I just can't do it.  But I respect it :)

Regarding Corporate Bonds, it appears I can get a little more exposure with ZAG rather than VAB:

From CCP...
Quote
One small point to be aware of: VAB and ZAG have slightly different risk exposures. The Vanguard ETF is roughly 80% government bonds and 20% corporates, while ZAG is closer to 70% government and 30% corporates, which explains its slightly higher yield to maturity.

I don't know whether or not preferred shares are worth mucking around with.  I suppose I'm looking to hedge my exposure to rate increases.  Prefs would do that, but there is a cost via higher management fees and increased volatility.

It's entirely possible that I'm over thinking this.