Shedding Light on the “Light” Model ETF Portfolios
Canadian Portfolio Manager Podcast
Release Date: 04/09/2020
All That Glitters Are Gold ETFs
Canadian Portfolio Manager Podcast
In Episode 10 of the Canadian Portfolio Manager Podcast, Justin analyzes the historical returns of gold from 1972 to 2019 to help Canadian investors decide whether the shiny yellow metal deserves a place in their portfolio. Using the data, Justin sets out to determine if any of the hype is warranted – has gold historically been a decent safe haven, portfolio diversifier, return enhancer and/or inflation hedge for Canadian investors? At the end of the show, we pit two gold ETFs (IAU and GLD) against one another in our ETF Kombat. And for all you visual learners out there, the gold discussion...
info_outline
Hedging Your Bets, With Currency-Hedged ETFs
Canadian Portfolio Manager Podcast
In Episode 9 of the Canadian Portfolio Manager Podcast, we discuss whether currency-hedged ETFs make sense for Canadian investors. Steven Leong, of BlackRock Canada, joins us once again to share his insights on the purpose of currency-hedging, as well as the firm’s currency-hedging process. We then break for an ETF Kombat between XSP (the granddaddy of currency-hedged ETFs), and its younger rival, XUH. We’ll then take a deep dive into the historical risk and return data to help you decide whether currency-hedged ETFs deserve a place in your portfolio. At the end of the show, we’ll...
info_outline
Making Cents of Your ETF’s Loonie Currency Exposure
Canadian Portfolio Manager Podcast
In Episode 8 of the Canadian Portfolio Manager Podcast, Justin starts off by answering a listener question regarding the currency exposure of two U.S. equity ETFs in the CPM model portfolios. Steven Leong, of BlackRock Canada, also drops in to provide his currency insights throughout the episode. We then embark upon a most excellent currency adventure with Bill and Ted - two pals who are trying to wrap their heads around the confusing world of currencies. The currency exposure of international, emerging markets, and the iShares “dot U” equity ETFs are also examined. Finally, we end the...
info_outline
Asset Location Strategies with the “Plaid” Model ETF Portfolios
Canadian Portfolio Manager Podcast
In Episode 7 of the Canadian Portfolio Manager podcast, Justin takes investors on an epic journey through the new “Plaid” model ETF portfolios. During the show, investors will learn the asset location strategies necessary to manage their very own Plaid portfolio. Michael James (creator of the popular personal finance blog, ) will also drop by to share his personal experiences managing a Plaid-like portfolio. As always, there will be an exciting ETF Kombat – this time, between XEF and IEFA, who will battle it out in your TFSA, RRSP and taxable accounts. After the match, we’ll take you...
info_outline
Asset Location Strategies with the “Ludicrous” ETF Portfolios
Canadian Portfolio Manager Podcast
If you’re wondering whether you’re holding your ETFs in the right accounts, this episode of the CPM Podcast is for you. During the show, investors will learn how to properly implement a traditional asset location strategy with the new Ludicrous Model ETF Portfolios. Justin will also reveal why a Ludicrous portfolio can be a superior choice to simply holding the same asset allocation ETF across each account. We’ll then break up the discussion with an ETF Kombat between two popular U.S. equity funds: XUU and VUN. After the match, we’ll compare the advantages and disadvantages of a...
info_outline
Wrapping Your Head Around the “Ridiculous” Model ETF Portfolios
Canadian Portfolio Manager Podcast
In Episode 5 of the CPM Podcast, Justin continues to fine-tune his portfolios. He shows investors how they can cut the cost of their Vanguard or iShares asset allocation ETF by switching to one of his “Ridiculous” model portfolios. During the discussion, investors will discover the many benefits of using U.S.-based foreign equity ETFs in their RRSP, and also learn how tax-efficient bond ETFs can help to reduce their tax bill in taxable accounts. And in this episode’s ETF Kombat, the BMO Discount Bond Index ETF (ZDB) will take on not one, but three of its rivals: VAB, XBB and ZAG. Justin...
info_outline
Shedding Light on the “Light” Model ETF Portfolios
Canadian Portfolio Manager Podcast
Justin has recently updated his Canadian Portfolio Manager (CPM) model ETF portfolios. There are now four CPM portfolio levels of complexity to choose from: Light, Ridiculous, Ludicrous or Plaid. Each of the models’ four levels is more difficult to manage than the last … and arguably, more powerful. In this four-part podcast series, Justin will discuss each of his four model ETF portfolio levels in painstaking detail, starting with the Light portfolios. We’ll also lighten up the discussion with an ETF Kombat between two bond ETFs: VAB and VGAB. And after reviewing the advantages and...
info_outline
Tax Me If You Can: Foreign Withholding Taxes on ETF Distributions
Canadian Portfolio Manager Podcast
In this tax-heavy episode, Justin discusses his part-time obsession – foreign withholding taxes. Throughout the show, he explains which specific ETFs are best held in each account type in order to reduce this largely hidden tax drag. He is joined by industry experts from BMO, BlackRock and Vanguard, who each discuss their company’s approach to mitigating this cost. ZEM and XEC also go head-to-head in the latest ETF Kombat. As a side-bar, Justin’s popular model ETF portfolios have been updated for 2020, and now include Light and Ridiculous levels of portfolio complexity (with Ludicrous...
info_outline
Dumping Your Losers: Tax Loss Selling with ETFs
Canadian Portfolio Manager Podcast
In Episode 2, Justin gets into the weeds of tax loss selling with ETFs. You’ll learn the core rules to follow, common pitfalls to avoid, and the best “portfolio-tested” ETFs for implementing this tax-efficient strategy. Back by popular demand, the show also features another ETF Kombat, this time with VCN and XIC facing-off in an epic battle you can’t miss. And if you don’t have time to listen to the entire episode, skip ahead to the TLDL (too long, didn’t listen) segment, where the entire episode will be summarized in under five minutes. Introduction to tax loss selling...
info_outline
Plain and Simple: Vanguard’s Asset Allocation ETFs
Canadian Portfolio Manager Podcast
In the debut episode of the Canadian Portfolio Manager podcast, we kick things off by helping you choose which Vanguard Asset Allocation ETF is right for you. During the show, Justin estimates the future expected returns of these one-fund solutions, and also discusses the reasons for their overweight to Canadian stocks. At the end of the podcast, personal finance expert, Robb Engen (of Boomer and Echo fame), asks Justin whether he should optimize his portfolio to save on product fees and taxes. Using Vanguard’s Investor Questionnaire as a starting point to determining a...
info_outlineJustin has recently updated his Canadian Portfolio Manager (CPM) model ETF portfolios. There are now four CPM portfolio levels of complexity to choose from: Light, Ridiculous, Ludicrous or Plaid. Each of the models’ four levels is more difficult to manage than the last … and arguably, more powerful.
In this four-part podcast series, Justin will discuss each of his four model ETF portfolio levels in painstaking detail, starting with the Light portfolios. We’ll also lighten up the discussion with an ETF Kombat between two bond ETFs: VAB and VGAB. And after reviewing the advantages and disadvantages of the Light portfolios, we’ll answer a voicemail question from Emily in Vancouver, who would like to know how to tax efficiently reduce the risk of VGRO in a taxable account as she approaches retirement.
- How to read the Vanguard and iShares Light model ETF portfolio reports [0:02:25.4]
- Combining two asset allocation ETFs for a custom asset mix [0:03:07.4]
- Introducing Justin’s foreign withholding tax ratio (or FWTR for short) [0:03:50.4]
- 25 years of semi-fictional model ETF performance [0:04:17.4]
- The worst 1-year portfolio returns over the past 25 years, and why you should pay close attention to these before investing [0:04:42.4]
- The pros and cons of keeping your portfolio simple [0:05:04.4]
- ETF Kombat: VAB vs. VGAB [0:08:55.4]
- Equity home bias differences between the Vanguard and iShares asset allocation ETFs [0:14:00.4]
- Foreign equity weighting differences between the Vanguard and iShares asset allocation ETFs [0:016:12.4]
- Fixed income home bias differences between the Vanguard and iShares asset allocation ETFs [0:18:00.4]
- Duration differences between the Vanguard and iShares asset allocation ETFs [0:19:05.4]
- How these equity and fixed income differences would have impacted the historical risk and return of a balanced portfolio over the past 20 years [0:19:29.4]
- Fee differences between the Vanguard and iShares asset allocation ETFs [0:20:11.4]
- A look at the iShares and Vanguard rebalancing strategies for their asset allocation ETFs [0:20:42.4]
- What is a pre-authorized cash contribution (PACC), and how do investors set one up for XBAL or XGRO? [0:22:39.4]
- Voicemail Question: Emily from Vancouver asks Justin how she can reduce the risk of VGRO in a taxable account as she approaches retirement (without realizing big capital gains) [0:24:56.4]
Blog posts/resources discussed in this episode: