Author Topic: Switch to VXC?  (Read 3672 times)

human

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Switch to VXC?
« on: February 13, 2016, 11:30:10 AM »
Hi everyone looking for comments on a plan to switch to VXC. My current asset allocation (all equities) target is:

50% US;
30% Int Developed;
10% CDN;
10% EM

My actual current allocation is:

49% US (VDU) in RRSP
15% CDN (VCN) in RRSP
35% INT (VDU) in TFSA
0% EM (VEE) was going to start putting money here.

Just started investing last year have less than 30k actual invested with 3k down so far. To get started I just started buying without really thinking of allocation. I then gave it some thought and decided I wanted to be close to world market cap and not overweight Canada.

I'm not too far off of my target.

I invest every two weeks (or at leas when I can) letting new money re-balance really. EDIT to add, I do not plan on stopping or slowing down because of current market troubles.

I know VXC was around last year but it was new and I stayed away. VXC seems to be pretty damn close to my non Canadian target allocation.

Anyone make the switch? It seems it would simplify things, but I'm pretty new to this and have some really dumb questions.

If I sell off VDU and VUN in my RRSP and TFSA to make a switch will that be considered a realized loss? EDIT If so any tax implications?

Is this switch a smart move when everything is tanking?

I feel like I'm missing something, kinda newbish questions I bet but there it is. Any comments welcome.
« Last Edit: February 13, 2016, 11:51:10 AM by human »

Retire-Canada

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Re: Switch to VXC?
« Reply #1 on: February 13, 2016, 12:57:15 PM »
If I sell off VDU and VUN in my RRSP and TFSA to make a switch will that be considered a realized loss? EDIT If so any tax implications?

There are no tax implications for selling one ETF and buying another within those accounts.

human

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Re: Switch to VXC?
« Reply #2 on: February 13, 2016, 12:59:15 PM »
That's what I was thinking, thanks. Anyone switch out a few etfs for one like VXC?

Retire-Canada

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Re: Switch to VXC?
« Reply #3 on: February 13, 2016, 01:05:09 PM »
That's what I was thinking, thanks. Anyone switch out a few etfs for one like VXC?

My GF holds VXC. I hold VUN/VDE/VEE. She likes the simplicity of one ETF. I like a little more control.

I don't think there is a right or wrong answer. Pick whichever approach you prefer.

meghan88

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Re: Switch to VXC?
« Reply #4 on: February 13, 2016, 01:20:37 PM »
I bought VXC in two installments a month ago, trying to average down, and with impeccable 20/20 hindsight I either wish I'd waited or bought XIC or VCN instead.  Some say the Canadian market is oversold, some say that that it will descend further.  Who knows ... not me, that's for sure.

Anyway I have other things that are doing way worse.  Had my TFSA in a high-interest savings account until August then dumped it into Wealthsimple in August/September plus my January top-up, and I'm down $1767.  Woot!  Better than my REIT (D.UN) which has lost a whopping $12,500 (36%) in a year and a half, even after factoring in the monthly dividends.  I am a "buy and hold" investor and I just sit back and watch all of my stuff tank, tank, tank.  In 20 years of investing, with and without advisors, I'm lucky to break even.

Your best bet is to run away as fast as you can from whatever it is I'm buying and holding.  I have 80K sitting in a high-interest savings account so when I decide to throw that into the market ... look out!!  :)

beee

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Re: Switch to VXC?
« Reply #5 on: February 17, 2016, 04:14:00 PM »
That's what I was thinking, thanks. Anyone switch out a few etfs for one like VXC?

Switched my porfolio from
VAB 10%
VDU 30%
VUN 30%
VEE 10%
VCN 20%
to
VCN 20%
XAW 80%

I thought that I'll enjoy more control with more funds. I was wrong.
Having just 2 funds is easier, simpler and more boring for me.
And simple and boring is good, imho.

human

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Re: Switch to VXC?
« Reply #6 on: February 17, 2016, 05:49:30 PM »
It's sounds stupid but I hate switching now because I cant shake the feeling i bought hi and sold low. Really irrational . . .
« Last Edit: February 19, 2016, 05:21:15 PM by human »

beee

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Re: Switch to VXC?
« Reply #7 on: February 19, 2016, 10:53:41 AM »
I switched last summer.
Don't switch if you don't want to. You can just buy new funds with new contributions.

Goldielocks

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Re: Switch to VXC?
« Reply #8 on: February 20, 2016, 09:18:03 AM »
I switched to VXC, a couple of things..

1.  VXC does not attract as large of a pool of capital as other funds, I think because by design it is for Canadian investors.   Buying and getting bid / ask picked up was a lot slower than other funds for me.

2.  Human nature, being what it is, I have not yet managed to fully extricate myself from some of the funds I was switching out. Just my caution about selling and hating that $9 brokerage fee I pay (which is nothing, but there you are.)   So, new money and some switching done, but I still have a bit of a mess of overlapping funds to clean up.




human

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Re: Switch to VXC?
« Reply #9 on: February 20, 2016, 10:00:27 AM »
VDU and VEE don't have such large assets so I'm not sure 300 million in VXC is such a problem, I assume it will get bigger.

I see that XAW which gets talked about a lot only has 50 million in assets. Now that VDU has CDN I would probably wind up going to VIU (which has just 25 million in assets although only a couple of months old), so a switch would happen anyway.

For some reason I didn't really consider just buying VXC for now and switching the other investments later when my nest egg gets bigger. Or just switch out each position at a time.

I don't like the fees either it would cost 40 bucks to make the switch.

Goldielocks

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Re: Switch to VXC?
« Reply #10 on: February 21, 2016, 01:41:30 AM »
VDU and VEE don't have such large assets so I'm not sure 300 million in VXC is such a problem, I assume it will get bigger.

I see that XAW which gets talked about a lot only has 50 million in assets. Now that VDU has CDN I would probably wind up going to VIU (which has just 25 million in assets although only a couple of months old), so a switch would happen anyway.

For some reason I didn't really consider just buying VXC for now and switching the other investments later when my nest egg gets bigger. Or just switch out each position at a time.

I don't like the fees either it would cost 40 bucks to make the switch.
Yeah,  VXC is definitely much larger since I purchased it!    I only noted the difference because I had purchased VTI and VXUS at the same time, and VXC took a lot longer to fill even though the order was closer to market price.