John DeGoey, portfolio manager, Industrial Alliance Securities

FOCUS: Personal finance and ETFs

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MARKET OUTLOOK:

Cost is critically important to being a successful investor and clients should always look to build broadly based, highly diversified portfolios that minimize their costs. Therefore, using portfolio building blocks that are cheap, pure and fully invested in multiple-security, tax-effective strategies is critical. In addition, rebalancing should be done on a purposeful basis once the portfolio’s strategic mix has been established. Applying these clear, evidence-based principles is likely the best way to maximize your odds of having a successful investment experience.

TOP PICKS:

SPHERE FTSE EMERGING MARKETS SUSTAINABLE YIELD INDEX ETF (SHZ.TO)

This is the third consecutive show where I have recommended this product.  I continue to believe that emerging market equities are an under-owned asset class and that a tilt toward dividend payers (a value screen) is likely to help in enhancing returns.

ISHARES S&P/TSX GLOBAL GOLD INDEX FUND (XGD.TO)

This is a product I recommended a year ago. I want to reiterate the role gold can play both as a diversifier and as a hedge against both inflation and turmoil. People shouldn’t put more than about 5 per cent of their portfolios into this.

VANGUARD GLOBAL VALUE FACTOR ETF (VVL.TO)

This ETF is a product that is approaching its one-year anniversary in Canada and what an auspicious year it’s been.  This is a cheap, globally-diversified product that offers a basket of value stocks that can make a great core holding for almost anyone.

Disclosure Personal Family Fund/Portfolio
SHZ  N  N  Y 
XGD  Y  Y Y 
VVL  Y  N  Y 

PAST PICKS:  FEBRUARY 26 2016

VANGUARD FTSE EMERGING MARKETS ALL CAP INDEX ETF (VEE.TO)

  • Then: $24.84
  • Now: $31.25      
  • Return: +25.81%
  • TR: +28.42%

VANGUARD FTSE CANADIAN HIGH DIVIDEND YIELD INDEX ETF (VDY.TO)

  • Then: $26.34
  • Now: $34.47
  • Return: +30.87%
  • TR: +35.01%

ISHARES S&P/TSX GLOBAL GOLD INDEX ETF (XGD.TO)

  • Then: $11.05
  • Now: $13.73
  • Return: +24.21%
  • TR: +24.31%

TOTAL RETURN AVERAGE: +29.25%

 

Disclosure Personal Family Fund/Portfolio
VEE Y Y Y
VDY N Y Y
XGD Y Y Y

Twitter: @JohnDeGoey_iAS

Website: www.johndegoey.com