There are two broad approaches to investing: active and passive. Both aim to make money but how do they differ?
Three simple strategies can have an enormous impact on your investment returns. I call them FTD - Fees, Taxes and Diversification.
Most financial professionals in Canada are licensed as salespeople with no fiduciary duty to clients. Most bank "Advisors" (not the same as Financial Advisers believe it or not) are basically salespeople with little training who are rewarded for selling over priced bank mutual funds.
The good news is that there is one remarkably good deal for income investors – the Canadian dividend tax credit
The S&P 500 is up 155% since 2012, but that is unlikely to continue. We have been in an economic expansion since 2009. Similarly, the stock market, at least the US market, has been on a phenomenal growth tear over the same period, increasing by an average of 13% per year plus dividends for a... Continue Reading →
In Part 3, we look at Actively Managed and Minimum Volatility ETFs. We also look at Vanguard's new One Fund Solution ETFs, and selected companies which are like managed ETFs because of their diversified holdings (Berkshire Hathaway for example). Finally, we wrap up the Workshop with a Model Portfolio that looks at some possible ETF... Continue Reading →
In Part 2, we explore the different types of ETFs available, including Canadian, US and Global Equities (stocks), Real Estate Investment Trusts (REITs), Preferred Shares, and various types of Bond funds. The Power Point presentation is here: ETF Workshop Part 2
This workshop offers a broad introduction to ETFs. It also includes a discussion of passive (index) versus active (managed) investing, and compares their performance over the last 5 and 10 years. In Canada, over 90% of actively managed funds underperformed their comparable index over a ten year period. See the SPIVA (S&P Index versus Active)... Continue Reading →