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.
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
Cash: $5,000.00 CAD
Cash: $5,000.00 USD
Grand Total (CAD at 1.2582 per USD as of 12/29/2017)
Current Allocation and Balance – February 28, 2019
|Current Value (In CAD)||Current Allocation|
|CAD TFSA Total||$4,994.95||42.32%|
|USD RRSP Total||$6,806.78||57.68%|
|Grand Total (CAD at $1.3169 per USD as of 2/28/2019)||$11,801.73||100.00%|
|2018 Total (USD RRSP)||$68.88 USD|
|2018 Total (CAD TFSA)||$4.90 CAD|
|2019 Total (USD RRSP)||$6.77 USD|
|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
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.