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CanETF Portfolio January 2019 Update: Resounding Rebound

Market Highlights After a brutal December, markets rebounded vigorously to start 2019. Both stocks and bonds had strong returns, and of the ETFs tracked below only Canadian preferreds were in the red (and barely so). In part, this rally was supported by market expectations that the U.S. Federal Reserve would lighten up or outright pause …

CanETF Portfolio December Update: 2018 Reflections (And A Bear Market)

Market Highlights December was a nasty month for stocks and a terrific one for bonds, especially longer term government bonds which benefitted most from retreating interest rates. Notable central bank activity included the ECB announcement of the end of asset purchases and the rate hike by the Federal Reserve to 2.25% – 2.50% (although the …

CanETF Portfolio

April 2019 Update – The CanETF Portfolio has been discontinued in order to focus on more relevant and actionable research. Thank you for reading.

The CanETF Portfolio is a real money ETF portfolio incepted on January 1, 2018 with $5,000 CAD and $5,000 USD. All ETFs are eligible for investment – all Canadian ETFs for the Canadian portion and all U.S. ETFs for the USD portion. The strategy is entirely unconstrained, and can invest in any ETF or cash in any proportion. The goal is to maximize long term risk-adjusted returns while limiting downside losses.

The CAD portion of the portfolio will be held in a TFSA, while the USD portion will be within an RRSP, both with Questrade.

Regular updates will be posted, including a monthly review and a trade notification every time an ETF is bought or sold. Portfolio construction philosophy, trade rationale, and thoughts on current and potential holdings will be shared in these updates.

Performance will primarily be assessed on a monthly basis. Due to the unconstrained nature of the strategy, no direct benchmark will be assigned but a variety of market benchmarks and fund averages will be used to provide context in reviewing performance. Avoiding negative monthly returns will be a priority over beating market indices, particularly stock indices. Although the portfolio may invest entirely in stock ETFs, it may also be allocated entirely to cash, bond ETFs, and/or other ETFs.

Starting Allocation and Balance – January 1, 2018

TFSA

Cash: $5,000.00 CAD

RRSP

Cash: $5,000.00 USD

Grand Total (CAD at 1.2582 per USD as of 12/29/2017)

$11,291.00 CAD

Current Allocation and Balance – February 28, 2019

 Current Value (In CAD)Current Allocation
CAD TFSA
Cash$3,729.9531.61%
CPD$1,265.0010.72%
CAD TFSA Total$4,994.9542.32%
USD RRSP
Cash$3,140.2726.61%
PFF$1,906.8716.16%
VWO$1,096.199.29%
FREL$663.455.62%
USD RRSP Total$6,806.7857.68%
Grand Total (CAD at $1.3169 per USD as of 2/28/2019)$11,801.73100.00%

Income Earned

DateTickerSharesPer ShareTotalInto
2/7/2018PFF20$0.189298$3.79USD RRSP
3/7/2018PFF20$0.172386$3.45USD RRSP
3/21/2018FREL20$0.261$5.22USD RRSP
4/6/2018PFF20$0.165853$3.32USD RRSP
5/7/2018PFF20$0.180445$3.61USD RRSP
6/7/2018PFF20$0.193889$3.88USD RRSP
6/20/2018FREL20$0.239$4.78USD RRSP
7/10/2018PFF20$0.194044$3.88USD RRSP
8/7/2018PFF20$0.176215$3.52USD RRSP
9/10/2018PFF20$0.160748$3.21USD RRSP
9/26/2018FREL20$0.564$11.28USD RRSP
10/1/2018VWO20$0.4746$9.49USD RRSP
10/5/2018PFF20$0.159159$3.18USD RRSP
11/7/2018PFF40$0.156483$6.26USD RRSP
12/7/2018PFF40$0.156173$6.25USD RRSP
12/24/2018PFF40$0.257547$10.30USD RRSP
12/27/2018FREL20$0.176$3.52USD RRSP
12/28/2018VWO20$0.2591$5.18USD RRSP
2018 Total (USD RRSP)$68.88 USD
11/30/2018CPD100$0.049$4.90CAD TFSA
2018 Total (CAD TFSA)$4.90 CAD
DateTickerSharesPer ShareTotalInto
2/7/2019PFF400.16935$6.77USD RRSP
2019 Total (USD RRSP)$6.77 USD
1/4/2019CPD100$0.049$4.90CAD TFSA
1/31/2019CPD100$0.052$5.20CAD TFSA
2/28/2019CPD100$0.052$5.20CAD TFSA
2019 Total (CAD TFSA)$15.30 CAD

The carnage in markets did not spare the Portfolio’s ETF holdings, and all four are in the red for December. Hardest hit was Fidelity MSCI Real Estate ETF (FREL) but the impact was lessened by the fact that it is the smallest of the holdings.

CanETF Portfolio Updates

CanETF Portfolio February 2019 Update: More Gains

CanETF Portfolio January 2019 Update: Resounding Rebound

CanETF Portfolio December Update: 2018 Reflections (And A Bear Market)

CanETF Portfolio November Update: Dovish Signal Helps Risk Assets

Trade #5: Patient Purchase of (Canadian) Preferreds

CanETF Portfolio October Update: Sea of Red

CanETF Portfolio Trade #4: More U.S. Preferreds

CanETF Portfolio September 2018 Update: Trade Progress and Fed Tightening

CanETF Portfolio Trade #3: Emerging Markets Bear Market Buy

CanETF Portfolio August 2018 Update: Emerging Markets Down Again

CanETF Portfolio July 2018 Update: Waiting Patiently…

CanETF Portfolio June 2018 Update: More Emerging Markets Weakness

CanETF Portfolio May 2018 Update: Missing Out?

CanETF Portfolio April 2018 Update: Stocks Up, Bonds and Preferreds Down

CanETF Portfolio March 2018 Update: Equity Losses Continue

CanETF Portfolio February 2018 Update: Volatility Returns

CanETF Portfolio Trade #2: Dipping Into U.S. REITs

CanETF Portfolio January 2018 Update: One Month In

CanETF Portfolio Trade #1: Starting With Preferreds

The CanETF Portfolio is not meant to be taken as investment advice. Please conduct due diligence on any ETF investment you are considering, including but not limited to a review of the prospectus, underlying benchmark methodology (if applicable), portfolio characteristics, holdings, performance since inception, role in your existing portfolio, and outlook for future performance.

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CanETF is dedicated to providing research and analysis for Canadian ETF investors.