Model Portfolio ETFs
The natural selection ETF model portfolio invests using funds from the biggest ETF providers in the marketplace, who offer similar ETFs in markets around the world. The major providers in Canada and the US and links to their self-directed investing products are listed below.
My primary basket of ETFs includes those listed below, which include US market equivalents in brackets. Click on the available links to view the factsheet for each ETF, which includes a list of the holdings, a summary of historical performance, fees, and other important information. For more information on how ETF's work and some popular themes for 2021, I have found the website Bankrate to be a useful resource.
Broad Market Indexes
HIX - Bear TSX
HFD - Double Bear Canadian Financials
Sector/ Commodity/ Specialty
CDZ - Canadian Dividend
XFN - Canadian Financials
XGB - Canadian Government Bonds
*US equivalent in brackets
**Canadian and US ETFs may differ both due to variable exchange rate between the two countries and or because they have some slightly different holdings. I do my best to find the closest alternative in each case but there can be no guarantees that these instruments will perform in a similar manner on an ongoing basis.
I occasionally introduce new ETFs into my basket because I believe it is a mistake to limit the number of available instruments if new ETFs are becoming available. That is not to say that every ETF in my basket finds its way into the model portfolio, rather it means that I may consider it for inclusion in my portfolio if it satisfies my investment system criteria at any given time. It is important to recognize that the ETFs that I use do not all carry the same risk profile. Inverse positions are inherently more volatile than broad market long ETFs because markets often do not go down the same way that they go up. The same goes for highly speculative sectors like gold miners, marijuana, and blockchain related investments, all of which carry a high degree of volatility. For this reason, I adjust position size to avoid exposing the portfolios to needless risk. Let's take a look at the model stock portfolio. NEXT
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