Author Topic: Question for Canadian Investors  (Read 572 times)

nihilism122

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Question for Canadian Investors
« on: November 10, 2018, 08:49:58 AM »
What are your thoughts on the TSX Index?  Do you invest in it?  The returns are virtually zero over the past 20 years and it is not well-diversified, and I hate all the oil companies.  Considering alternatives and open to suggestions.

NVDee

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Re: Question for Canadian Investors
« Reply #1 on: November 10, 2018, 09:09:34 AM »
25% VCN in order to invest in home currency, yes.  Our TFSAs show 8.2% and 9.1% MWRR since 2016.  And they both hold some bonds and cash in addition to VCN. 


There are lots of global alternatives, depends on what and where you are buying.
« Last Edit: November 10, 2018, 09:18:18 AM by NVDee »

Andy R

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Re: Question for Canadian Investors
« Reply #2 on: November 10, 2018, 09:45:09 AM »
Aussie here, but our markets and economies in general have an unusual amount of similarities.
Firstly you're taking it from the peak of an insane bubble when the price was ridiculously over inflated for a very short time.
If you draw a more smoothed line through that period, it looks like it would have averaged around 8,000 at the time, which means it is close to doubling over 20 years. So you only would have done that terribly if you invested most of your money between 1999 and 2000, unlike those who dollar cost averaged in adding steadily as they worked over the years.
Secondly, that does not take into account dividends. I would estimate that it would have approximately doubled again when taking into account dividends for the total return.
Still not good, but not quite as bad as it first seems, around 5%.
Nothing at all wrong with going 100% all world index and ignoring overweighting home country, and many advocate that.
If nearing retirement though, you may need to consider how much of your assets are in your home currency. If you counted up all your CAD bonds, investment property equity, pension/ss, and it didn't cover about half your assets, you might want to consider moving some international equities to the hedged version to cover currency upside risk. Not necessary if you are young though.