Strategy and Performance Tracking

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
RPABVG
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Strategy and Performance Tracking

Post by RPABVG »

Hi All,
I am interest to get feedback, hear experiences on how others deploy various investment strategies and track the performance of each.

For example:
Suppose you opened an RRSP account with "insert name of any brokerage" and you wanted to invest in the BTSX strategy, Dogs of the Dow strategy and buy a Canadian Equity Mutual fund. Assuming that you were adding to all these strategies on a regular basis, how would you track performance of each?

Would you open up 3 separate RRSP accounts with the brokerage?
Would you lump it all into 1 RRSP acccount and use something like Google Finance to track each strategy?
What are you guys doing and why?

Thanks!
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Re: Strategy and Performance Tracking

Post by DenisD »

I wrote an Excel VBA application to manage my investments. My transaction spreadsheet now has over 12,000 rows for activity since the beginning of 2000. I have about 100 securities split into different asset classes. This includes 5 stock screens with multiple stocks in each screen. Each stock screen is a different asset class. I can track the returns of each asset class or the portfolio as a whole. I spend an hour or two each month updating spreadsheets. This includes entering the buys/sells, prices and dividends and reconciling my records with the broker account statements. Many of the procedures are semi automated.

Obviously, not for everyone.
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ghariton
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Re: Strategy and Performance Tracking

Post by ghariton »

I keep the number of RRSPs to the minimum possible (one for me, one for my wife, a spousal RRSP in her name to which I contribute, and a LIRA for me). Minimizing the number of RRSPs /RRIFs simplifies my portfolio management, including record-keeping. It also simplifies withdrawals when in the RRIF stage -- you don't have to worry about withdrawing the minimum in multiple RRIFs.

I keep track of each transaction and I update the ACB of the entire RRSP after each transaction.

That's it.

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Re: Strategy and Performance Tracking

Post by always_learning »

I wrote an Excel spreadsheet, though much more basic than DenisD's work of art. Each year gets a sheet; within each sheet, each asset class gets a column. I spend a few hours every January inputting the previous year's buys, sells and dividends for each asset class. Excel's XIRR function then calculates the return of that asset class for the previous year. I make the simplification that I received all of that asset class's dividends as a lump sum on July 1st. At the end of the spreadsheet, a few sheets graph the performance of the asset classes over time.

This manual entry works for me, as I create a new year's sheet by copying and editing the previous year's sheet and always have <10 total transactions/year. If you have many more transactions/year, this might not work for you.

In my spreadsheet, nothing is automated.

How many RRSPs are right for you? I have just one, but I would ask your broker what year-end information they will tell you about each account. If your broker will tell you the time-weighted (or money-weighted) annual rates of return for each RRSP, and that's what you want to know, that would obviously save you effort.

a_l
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Re: Strategy and Performance Tracking

Post by RPABVG »

Thanks for the replies folks. Seems the consensus is use of an excel spreadsheet. I assume you all use a discount brokerage/online account? Have you looked at what tracking features might be available there? I use Qtrade and notice they have both a basic and advanced watchlist feature. Not sure, but that might get the job done too.
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Re: Strategy and Performance Tracking

Post by adrian2 »

RPABVG wrote: 29 Aug 2017 22:57 Seems the consensus is use of an excel spreadsheet.
FWIW, I'm using Quicken, not Excel.
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Re: Strategy and Performance Tracking

Post by Quebec »

RPABVG wrote: 23 Aug 2017 06:03 I am interest to get feedback, hear experiences on how others deploy various investment strategies and track the performance of each.
(...)
Would you open up 3 separate RRSP accounts with the brokerage?
Open one RRSP account per person only if possible. Cause you might eventually end up with 2 RRSPs (one for you, one for your partner), 2 TFSAs, 2 non-reg accounts and one RESP to manage. :shock:

I have one long-term investment strategy and one target asset allocation for all these accounts combined, except the RESP. I have a home-made spreadsheet to track everything on one page, again except the RESP. ETF values are updated using a Yahoo download from Gummy. For mutual funds (TD e-funds) I use a webquerry pointing to Google Finance. The CAD-USD exchange rate is updated with another webquerry.

This is the magic spreadsheet that tells me what asset class to buy when I have cash available (i.e., buy whatever is below target). This takes all emotion and guesswork out of the investing process.
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Re: Strategy and Performance Tracking

Post by IdOp »

I agree with the idea of keeping the accounts simple, so 1 RRSP if possible. Performance tracking of sub-portfolios can be done "on paper', that is in software. As to what software to use, you have to decide what is easiest and the most reliable for you. Many here use spreadsheets for this, but for myself I wouldn't consider it suitable to do this way because I'm simply not good enough at them to handle such a job.
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Re: Strategy and Performance Tracking

Post by Descartes »

Google Finance portfolios feature is being dropped in November.
Portfolios deprecation information

In an ongoing effort to make Google Finance more accessible and user-friendly for a wider audience, we’re making a few major changes to the service in November 2017.

As part of this updated experience, you’ll still be able to:

Follow the stocks you’re interested in
Receive the latest industry news and market trends

However, as part of this updated experience, the Portfolios feature will no longer be available. To keep a copy for your records, download your portfolio now.

To give you time to download and consider alternative services, this change won't happen until mid-November 2017.
"A dividend is a dictate of management. A capital gain is a whim of the market."
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big easy
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Re: Strategy and Performance Tracking

Post by big easy »

I too use a spreadsheet to track the value of each account and our (wife and me) total new worth. I track the buys and sells, dividends, ACB, gains and losses for securities held in taxable accounts only and don't bother if it's held in a RSP, TFSA etc. I used to track them all but found it too time consuming. At the end of the year I check for ETF reinvested dividends, ROC etc. in the taxable accounts.

I use a Yahoo finance script the automatically download ETF prices and CAD/USD exchange.
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Re: Strategy and Performance Tracking

Post by bindexit »

Bummer... re: In November, the Portfolios feature in Google Finance will no longer be available.

I really enjoyed their feature and it was FREE. Previously, I used the Globe & Mail site but ditched when they charged.

I checked out Yahoo Finance this morning and so far not impressed. I created a watchlist but unsuccessful in trying to record transactions. It seems to be in my holdings where it has "+ Add lot" under the column "Lot Value". Each time I click on "+Add Lot", it does not respond.

Aside from Yahoo finance and broker sites, I'll have to research here for other "Free software" tracking sites.
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Re: Strategy and Performance Tracking

Post by BRIAN5000 »

"+ Add lot" under the column "Lot Value". Each time I click on "+Add Lot", it does not respond.
Works fine for me not that I use that feature. :?
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Re: Strategy and Performance Tracking

Post by Spudd »

Stockrover.com has the portfolio tracking feature but it's a little clunky compared to how clean Google is. I too will need to investigate other options as I've been using Google mainly. It seems stupid of them to remove that feature.
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Re: Strategy and Performance Tracking

Post by chufinora »

It is only the portfolio trackers on Google Finance that is being deprecated. Google Docs and Google Finance integration is not going away (As far as I know). It is very easy to create a simple Google sheet to track a portfolio recreating the portfolio tracker function. A cell with =GoogleFinance(RY.TO, "price") will return the Royal Bank stock price, =GoogleFinance(RY.TO, "closeyest") will return yesterdays closing price.
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Re: Strategy and Performance Tracking

Post by always_learning »

I agree with chufinora that one could use Google sheets (plus Google Finance) to track one's portfolio. If I were creating a tracking system now, that's probably what I would do, personally.

I'm also pleased with marketwatch.com (for tracking ETFs and ind'l stocks only -- I can't comment on how it tracks bonds or mutual funds). I create multiple watchlists, one for each asset class. And it's free.

With marketwatch, Canadian stocks and ETFs must be prefaced with "CA:." For VCE, for example, use the ticker "CA:VCE."

a_l
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Re: Strategy and Performance Tracking

Post by gaspr »

I just tried creating a google sheet to track ETF prices. Worked for all my ETFs except VSB.TO. It always comes up with a price of 0. Can someone else try this to see if it is a system error?
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Re: Strategy and Performance Tracking

Post by DenisD »

Try TSE:VSB. I use that prefix for Canadian stocks.
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Re: Strategy and Performance Tracking

Post by gaspr »

Hmmm. Tried that but still no good...
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Re: Strategy and Performance Tracking

Post by DenisD »

Worked on my phone.
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Re: Strategy and Performance Tracking

Post by chufinora »

gaspr wrote: 29 Sep 2017 13:39 I just tried creating a google sheet to track ETF prices. Worked for all my ETFs except VSB.TO. It always comes up with a price of 0. Can someone else try this to see if it is a system error?
VSB.TO should work but it doesn't?! however I tried VSB and it worked with the correct Canadian dollar value. Over 5/6 years of using Google sheets to track I have had the odd temporary glitch with a few tickers perhaps 2/3 times, but no showstoppers.
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Re: Strategy and Performance Tracking

Post by DenisD »

GoogleFinance doesn't work with ETFs listed on the NEO exchange. At least, it didn't work back in February.

Here is the thread on the subject with a workaround that still works: http://www.financialwisdomforum.org/for ... 78#p592178

But who knows how long it will keep working.

Here is a list of securities listed on the NEO exchange: https://www.aequitasneo.com/en/exchange ... securities
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Re: Strategy and Performance Tracking

Post by Descartes »

Speaking of strategy tracking, the Globe's "Strategy Lab" project concluded a week or so ago after 5 years.
Strategy Lab set out to look at how four classic investing styles - value, growth, dividend and indexing strategies - would work in real time. Each of our expert investors started with $50,000 in hypothetical funds and invested in whichever securities they saw fit. We tracked their results to see how each of the four approaches worked in practice.
  • Chris Umiastowski (growth) quintupled his starting stake to $253,738.

    Norm Rothery (value, of course) had a 95-per-cent gain.

    John Heinzl (dividend) achieved a total return of nearly 75 per cent.

    Andrew Hallam (indexing) managed to gain nearly 48 per cent.
What Strategy Lab demonstrates, more than anything else, is that it's possible for investors to make money - good money - in many different ways. The most important virtues are diversifying your portfolio, keeping costs low and sticking to a strategy through the inevitable ups and downs.
The Globe is going to expand Heinzl's dividend investing coverage given the "huge amount of reader interest".
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Re: Strategy and Performance Tracking

Post by deaddog »

Descartes wrote: 01 Oct 2017 08:15 Speaking of strategy tracking, the Globe's "Strategy Lab" project concluded a week or so ago after 5 years.
Strategy Lab set out to look at how four classic investing styles - value, growth, dividend and indexing strategies - would work in real time. Each of our expert investors started with $50,000 in hypothetical funds and invested in whichever securities they saw fit. We tracked their results to see how each of the four approaches worked in practice.
  • Chris Umiastowski (growth) quintupled his starting stake to $253,738.

    Norm Rothery (value, of course) had a 95-per-cent gain.

    John Heinzl (dividend) achieved a total return of nearly 75 per cent.

    Andrew Hallam (indexing) managed to gain nearly 48 per cent.
What Strategy Lab demonstrates, more than anything else, is that it's possible for investors to make money - good money - in many different ways. The most important virtues are diversifying your portfolio, keeping costs low and sticking to a strategy through the inevitable ups and downs.
The Globe is going to expand Heinzl's dividend investing coverage given the "huge amount of reader interest".
Thank you;

The results seem to show that you have to invest some time as well as money in order to have superior returns.
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Re: Strategy and Performance Tracking

Post by pmj »

Wow - has anyone visited Google Finance this morning? Seems that the site has been totally destroyed :(. Not just the previously-announced ending of the Portfolio feature, but also the detailed graphs, etc. And the font is so large that only a few items are immediately visible. I'm at work, so I don't have time to see if the useful info is just hidden, or completely done-for ...
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Re: Strategy and Performance Tracking

Post by Profit not Prophet »

Strategy labs wrap up.

I did a quit rough data grab from the globe funds quote for 5 year chart results of sp500 total return end of oct 2012 to 2017 21.19% so 50k would become $129.3. The imperfect Canadian index for same period was 8.41% 50k becomes $81.1. Mawer Cdn fund would have been 13.59% for $99.7k. So 3/4 cdn 1/4 us would have been around $92ish. This is a after one coffee morning calculation one handed on a little calculator while listening to blues guitar so my results are likely better than a Florida election but might be too lazy and mellow for our on the ball crew here :) Still interesting.
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