IntenseDebate - Canadian Couch Potato

11 years ago @ MoneySense - The Models Are Broken�... · 0 replies · +1 points

Thanks to everyone for entering the draw. Winners will be announced on Thursday morning.

12 years ago @ Steadyhand Blog - Tie Breaker - Steadyha... · 1 reply · -5 points

Tom: I agree with your comment that your funds are hard to benchmark. For example, it doesn't make a lot of sense to compare the Income Fund to the DEX Universe. A blended benchmark that included comparable ETFs with the same asset mix would be more meaningful. For example, in 2011 it might have been:

iShares XGB30%
iShares XCB45%
iShares XDV18%
iShares XRE7%

That mix would have returned 8.42% in 2011, outperforming the Income Fund significantly.

12 years ago @ MoneySense - Commission-free ETFs, ... · 0 replies · +1 points

@Hanns: Unfortunately the lineup of commission-free ETFs does not include many core ETFs: most are narrow sector funds. However, it would be possible to build a well diversified portfolio using Claymore's CLF and CBO for bonds, HXT and XMD for Canadian equities, HXS for US equities, and CIE for international equities.

12 years ago @ MoneySense - Couch Potato Portfolio... · 0 replies · +1 points

@Liz: There is no magic Couch Potato formula, and no single best portfolio. XIU holds only large-cap Canadian stocks, while XIC holds both large and midcaps. The former is cheaper, while the latter is more diversified, and both are excellent choices.

The difference between VEU and VXUS is similar. Both cover the same countries, but VXUS has more exposure to midcap and small companies. Again, it would be hard to go too far wrong with either one.

12 years ago @ MoneySense - Norbert's gambit: A be... · 0 replies · +1 points

@Bob and Felix: I do not have personal experience doing this with Questrade or Virtual Brokers. However, as long as the account allows you to hold both US and Canadian cash, it should not be a problem. I believe that both brokerages allow this (not all of them do in registered accounts). I would recommend calling them before performing the trades to make sure.

12 years ago @ MoneySense - Norbert's gambit: A be... · 2 replies · +1 points

@MetaRX: You're correct that Norbert's gambit and washing trades are not the same thing. The main difference is that washing trades is only useful if you already hold a security in US dollars and you want to sell it without exchanging the currency back to Canadian dollars. It assumes that you already paid currency conversion fees when you first bought the US-denominated security, but it allows you to avoid subsequent fees.

Norbert's gambit, on the other hand, allows you to exchange Canadian dollars to US dollars and back again as many times as you want—assuming that your brokerage account allows you to hold both currencies.

The short answer is that with a TD RRSP, you will have to pay to convert currency the first time. Canadian Capitalist has written about this pretty extensively. Check out his blog for more.

12 years ago @ MoneySense - Dividends: Not As Tax-... · 1 reply · +1 points

@David: Thanks for your comment. Why is it that people "invest for dividends" but consider capital gains a bonus? Why don't we invest in equities with the expectation of a total return that consist of some combination of both?

Behavioral economists have been asking this question for decades, too. As Meir Statman writes, “A dollar labeled dividends is as green as a dollar labeled capital, so rational investors are indifferent between the two.”

12 years ago @ MoneySense - Norbert's gambit: A be... · 1 reply · +2 points

@Mario: This is a great question. Stock/ETF trades should settle on the third day after you make the transaction. Some brokerages seem to require you to wait these three days before journaling the ETF from one currency to another, but not all of them do. I would suggest you call the brokerage to ask them before you try the gambit.

12 years ago @ Steadyhand Blog - Say it Ain\'t So - Ste... · 0 replies · +5 points

I agree completely that a Mongolia ETF is absurd. I would definitely only buy it if it were inverse and leveraged 3x. :)

13 years ago @ MoneySense - Currency Hedging in In... · 0 replies · +1 points

Glad the links helped. Yes, DIY's article is excellent!

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