I’ve decided to increase my equities portion to 70% and to include the ETF XQQ from iShares. As a result, the fixed income component has dropped to 30%. I’ve added the full amount of XQQ to my TFSA as this is a growthy ETF.
Below is a bit more context in relation to when the year started.
WhY make a change now?
There may be some more volatility to come in the weeks and months ahead. That’s ok. I still think there’s more positive to come. I’m hoping that the multiple changes I’ve made recently are done for a while.
Where update?
The soggy PF is sitting at a lame -12% as of this moment, how are the others in your list doing?
Currently updating them as I type. Everything to September 30, 2022 is published with October and November reviews coming shortly. Being in South East Asia now has distracted me a bit…in a good way.
it’s been a very tough environment for 60/40 portfolios. they didn’t work this year.
Really? As far as I can see it’s performed better (lost less) than other ratios.
bonds are the traditional balance to stocks. in that sense, any type of portfolio like a 60/40, 50/50 etc, (or 100% stocks or 100% bonds) didn’t work. bonds and stocks both went down. there was no protection from owning bonds.
if you look at the vanguard etfs (veqt, vbal, vcns etc) because they keep everything standard, all those portfolios had the same max drawdowns down 15-17%, all within 1-2% of each other. and ytd, they have again more or less the same returns within 1-2% of each other.
one can always fiddle with weights but then you’re changing the parameters. (which i have no problems with) but if you’re sticking to this type of investing, i’d say, it didn’t work this year.
having said that, it’s looking like a possible rebound year coming up. and hopefully, things will recover.
As much as I do not like all in one ETF portfolios like VEQT, VBAL, or VCNS, 2022 isn’t done yet. I’ve just updated the September 2022 monthly review and posted it. I will say in the last little while, bonds have been punching above their weight class. Especially the long term ones like XLB which I hold in my own B&D portfolio. I’ll publish the October and November monthly reviews in short order and what I’ve mentioned here will become apparent.