Simple Portfolios 2014
- Shakespeare
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Simple Portfolios 2014
It's been suggested that simple portfolios be updated.
Here are some suggestions. I am sure others will have alternatives.
1. Simple Balanced Fund: Mawer Balanced
2. Two part portfolio: VAB and VT (US$) or XWD (C$).
3. Three part portfolio: VAB, XIC, and VT or XWD
4. Four part portfolio: VAB, XIC, VTI (US$) or VUN (C$), VXUS (US$) or ZEA (C$)
I'm sure there will be other suggestions.
Here are some suggestions. I am sure others will have alternatives.
1. Simple Balanced Fund: Mawer Balanced
2. Two part portfolio: VAB and VT (US$) or XWD (C$).
3. Three part portfolio: VAB, XIC, and VT or XWD
4. Four part portfolio: VAB, XIC, VTI (US$) or VUN (C$), VXUS (US$) or ZEA (C$)
I'm sure there will be other suggestions.
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- Norbert Schlenker
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Re: Simple Portfolios 2014
Thanks, Shakes. I've done an edit and am happy to do more. The variety of new products makes this a bit challenging, as the lists of options are getting a little long.
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- Peculiar_Investor
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Re: Simple Portfolios 2014
FWIW, a while back the Simple portfolios portion of the Portfolio design and construction was split out into it's own article. The rationale was Wikipedia's guidance (Wikipedia:Article size), particularly reader attention span for such a long article.
With that in mind, I'd suggest improving the Simple portfolios to reflect the new alternatives.
With that in mind, I'd suggest improving the Simple portfolios to reflect the new alternatives.
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- Shakespeare
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Re: Simple Portfolios 2014
I'm sure there's a clever way you can transclude the separate article into the full article to avoid having to edit the same section twice.
Otherwise, there seems little point in duplication.
Otherwise, there seems little point in duplication.
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Re: Simple Portfolios 2014
When Vanguard Canada's new All World ex Canada ETF becomes available, in a few months, I would add:
Other companies have proven their interest in extracting as much money as possible off investors by creating new ETFs with lower fees instead of lowering the fees of nearly identical long-lived ETFs. So, I have no confidence that they'll keep their bait attractive low fees for long, once the new ETFs have gathered enough assets.
- The Canadian Three Fund Portfolio:
- Vanguard FTSE Canada All Cap Index ETF (VCN)
- Vanguard FTSE All World ex Canada Index ETF (V??)
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
Other companies have proven their interest in extracting as much money as possible off investors by creating new ETFs with lower fees instead of lowering the fees of nearly identical long-lived ETFs. So, I have no confidence that they'll keep their bait attractive low fees for long, once the new ETFs have gathered enough assets.
Variable Percentage Withdrawal (finiki.org/wiki/VPW) | One-Fund Portfolio (VBAL in all accounts)
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Re: Simple Portfolios 2014
According to Sedar documents, the new Vanguard All-World ex Canada will appropriately have the VXC ticker.
Variable Percentage Withdrawal (finiki.org/wiki/VPW) | One-Fund Portfolio (VBAL in all accounts)
Re: Simple Portfolios 2014
I own VDU and was considering moving to ZEA due to the direct ownership issue. When looking at the fund data, it seems that VDU holdings are now direct too. Would VDU also be appropriate now?
Re: Simple Portfolios 2014
Are you sure about that? This is in the fact sheet for VDU:squid wrote:I own VDU and was considering moving to ZEA due to the direct ownership issue. When looking at the fund data, it seems that VDU holdings are now direct too. Would VDU also be appropriate now?
* Information displayed is for the U.S.-domiciled Vanguard FTSE Developed Markets ETF
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Re: Simple Portfolios 2014
Now that the new ETF has started trading, I repeat my suggestion to add the following simple portfolio in Finiki:
It could be used as-is (by first selecting an appropriate asset allocation between stocks and bonds, and then dividing the stock allocation between domestic and international). The choice of specific securities can be done as a last step (e.g. VCN vs XIC vs HTX vs TDB900, VAB vs HBB vs GICs, etc.).
It could also be used as a starting point for further customization (e.g. tilting to small-value, slice and dicing, etc.) for those inclined to do so.
- The Three Fund Portfolio (for Canadians):
- Domestic stocks: Vanguard FTSE Canada All Cap Index ETF (VCN)
- International stocks: Vanguard FTSE All World ex Canada Index ETF (VXC)
- Domestic bonds: Vanguard Canadian Aggregate Bond Index ETF (VAB)
It could be used as-is (by first selecting an appropriate asset allocation between stocks and bonds, and then dividing the stock allocation between domestic and international). The choice of specific securities can be done as a last step (e.g. VCN vs XIC vs HTX vs TDB900, VAB vs HBB vs GICs, etc.).
It could also be used as a starting point for further customization (e.g. tilting to small-value, slice and dicing, etc.) for those inclined to do so.
Variable Percentage Withdrawal (finiki.org/wiki/VPW) | One-Fund Portfolio (VBAL in all accounts)
Re: Simple Portfolios 2014
Finiki appreciates new editors, why wouldn't you become one?
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- parvus
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Re: Simple Portfolios 2014
Ditto!
Wovon man nicht sprechen kann, darüber muß man schweigen — a wit
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Re: Simple Portfolios 2014
Nice offer... But, that's a challenging task. I have been unable, so far, to compose half a decent page about VPW in the Bogleheads Wiki. Somehow, I find it much easier to play with spreadsheets and numbers. Do you think it would be possibe to copy over into Finiki parts of http://www.bogleheads.org/wiki/Three_fund_portfolio ?
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Re: Simple Portfolios 2014
It's summertime, so some of the caretakers are away. Have you made any progress?
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Re: Simple Portfolios 2014
As you say, it's Summer and I haven't been proactive...
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- LadyGeek
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Re: Simple Portfolios 2014
I'm one of the finiki caretakers, but have a different challenge - I'm a US resident. As long as someone can guide me on the Canadian aspects, I'll put the info into finiki.
I took a stab at it here: Simple portfolios ("Three component and four component portfolios")
and here: Portfolio design and construction ("Three component and four component portfolios")
What portfolios would you like copied from the Bogleheads wiki? Lazy portfolios
(I also did a minor update to: Variable percentage withdrawal)
I took a stab at it here: Simple portfolios ("Three component and four component portfolios")
and here: Portfolio design and construction ("Three component and four component portfolios")
What portfolios would you like copied from the Bogleheads wiki? Lazy portfolios
(I also did a minor update to: Variable percentage withdrawal)
finiki, the Canadian financial wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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Re: Simple Portfolios 2014
Great!LadyGeek wrote:I'm one of the finiki caretakers, but have a different challenge - I'm a US resident. As long as someone can guide me on the Canadian aspects, I'll put the info into finiki.
I took a stab at it here: Simple portfolios ("Three component and four component portfolios")
and here: Portfolio design and construction ("Three component and four component portfolios")
I'm not sure, actually. I was thinking of a Canadian Three-Fund Portfolio finiki page inspired from the information on the Bogleheads wiki The Three-Fund Portfolio and Taylor's awesome Three-Fund Portfolio post.What portfolios would you like copied from the Bogleheads wiki? Lazy portfolios
I'll have to work on the upstream page. It's on my todo list.(I also did a minor update to: Variable percentage withdrawal)
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- LadyGeek
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Re: Simple Portfolios 2014
I created a draft sandbox page we can use for development: User:LadyGeek/Sandbox
Comments / questions / suggestions are welcome. Finiki editors are encouraged to edit the page directly.
Also, I added the Canadian 3-fund portfolio to the Bogleheads wiki: Canadian versions of lazy portfolios
Comments / questions / suggestions are welcome. Finiki editors are encouraged to edit the page directly.
Also, I added the Canadian 3-fund portfolio to the Bogleheads wiki: Canadian versions of lazy portfolios
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Re: Simple Portfolios 2014
First time to this page just had a quick look for now but looks really good.Also, I added the Canadian 3-fund portfolio to the Bogleheads wiki: Canadian versions of lazy portfolios
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
- Shakespeare
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Re: Simple Portfolios 2014
At the end should be "VT and VXC" with necessary wording changes.
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Re: Simple Portfolios 2014
I can't seem to come to a choice between VTI or VUN for our RRSP accounts.
I understand the benefit of VTI would be exemption from US foreign withholding taxes in a RRSP account, but the added layer of complexity and costs with conducting Norbert's Gambit for currency exchange a couple times a year... is it worth it? And potentially issues with US estate taxes.
I'm figuring that the costs of currency conversion (even through NG) and trading costs would bump that 0.05% MER of VTI up to around an amount that VUN is at (0.17% + 30% foreign withholding tax) which would make me seriously reconsider going through the troubles of buying VTI.
I was leaning towards VTI but I think I'm swaying to VUN now for simplicity sake.
*Edit - Now I'm considering just buying VXC and getting both US and International (excluding US and Canada) exposure and calling it a day.
*Edit 2 - And since I'd buy the ETFs for free through Questrade, my hunch is that VTI vs VUN or VXC would be a wash in terms of cost effectiveness/efficiency.
I understand the benefit of VTI would be exemption from US foreign withholding taxes in a RRSP account, but the added layer of complexity and costs with conducting Norbert's Gambit for currency exchange a couple times a year... is it worth it? And potentially issues with US estate taxes.
I'm figuring that the costs of currency conversion (even through NG) and trading costs would bump that 0.05% MER of VTI up to around an amount that VUN is at (0.17% + 30% foreign withholding tax) which would make me seriously reconsider going through the troubles of buying VTI.
I was leaning towards VTI but I think I'm swaying to VUN now for simplicity sake.
*Edit - Now I'm considering just buying VXC and getting both US and International (excluding US and Canada) exposure and calling it a day.
*Edit 2 - And since I'd buy the ETFs for free through Questrade, my hunch is that VTI vs VUN or VXC would be a wash in terms of cost effectiveness/efficiency.
Last edited by SkaSka on 05 Aug 2014 14:08, edited 2 times in total.
Re: Simple Portfolios 2014
LadyGeek wrote:I created a draft sandbox page we can use for development
The simplest portfolios, also known as lazy portfolios, use Guaranteed Investment Certificates (GICs) or single mutual funds
I would suggest balanced, instead of mutual as you allude to later on.One of the simplest ways to obtain a diversified portfolio is to purchase a single balanced or income mutual fund.
http://ca.ishares.com/product_info/fund ... ew/CBN.htm is one such product that's an ETF.
newguy
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Re: Simple Portfolios 2014
Simplicity is attractive, isn't it? That's why I switched to VCN/VXC/VAB when VXC came out. It's not a perfect portfolio*, but it is good enough for me with its high diversification for a low average management fee of .19%. It is a portfolio I intend to stick to for the long term.SkaSka wrote: *Edit - Now I'm considering just buying VXC and getting both US and International (excluding US and Canada) exposure and calling it a day.
*Edit 2 - And since I'd buy the ETFs for free through Questrade, my hunch is that VTI vs VUN or VXC would be a wash in terms of cost effectiveness/efficiency.
* Using cheaper Canadian or U.S. ETFs with Norbert's Gambit could be somewhat cheaper and a little more tax efficient, but would be more complex for a gain of maybe a few basis points.
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- LadyGeek
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Re: Simple Portfolios 2014
I understand the ticker symbols, but I don't know where you are referring to; nor what to change.Shakespeare wrote:At the end should be "VT and VXC" with necessary wording changes.
I updated the page: User:LadyGeek/Sandboxnewguy wrote:LadyGeek wrote:I created a draft sandbox page we can use for developmentThe simplest portfolios, also known as lazy portfolios, use Guaranteed Investment Certificates (GICs) or single mutual fundsI would suggest balanced, instead of mutual as you allude to later on.One of the simplest ways to obtain a diversified portfolio is to purchase a single balanced or income mutual fund.
http://ca.ishares.com/product_info/fund ... ew/CBN.htm is one such product that's an ETF.
newguy
skaska - I'll work in-between your questions, keep asking.
BRIAN5000 - Thanks. Do you have any more suggestions?
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- LadyGeek
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Re: Simple Portfolios 2014
Looking at the organization, I moved the FPX indexes to the bottom of the article. It's useful info, but perhaps not relevant as a main point of the article. User:LadyGeek/Sandbox
If the intent is to construct a portfolio aligned with these indexes, then specific suggestions should be made. The four-component portfolio is one such suggestion.
Now, the article flows from diversification to the funds in increasing order of complexity.
Should the diversification section be part of this article? I think this section and the FPX indexes belong in Portfolio design and construction - which is currently a duplication of the simple portfolios article. Some reorganization is needed.
If the intent is to construct a portfolio aligned with these indexes, then specific suggestions should be made. The four-component portfolio is one such suggestion.
Now, the article flows from diversification to the funds in increasing order of complexity.
Should the diversification section be part of this article? I think this section and the FPX indexes belong in Portfolio design and construction - which is currently a duplication of the simple portfolios article. Some reorganization is needed.
finiki, the Canadian financial wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
- Shakespeare
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Re: Simple Portfolios 2014
I understand the ticker symbols, but I don't know where you are referring to; nor what to change.
This sentence has a problem if located after the introduction of VXC. It's actually a 3-fund portfolio, so it should either also refer back to VXC or be moved up and rephrased.finiki wrote:As Rob Carrick has suggested [8], it is possible to replace two of the components (VEA and SPY) by the single all-world ETF XWD, offered by Barclays Canada. Vanguard offers a similar ETF, VT.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones