The recovery in the equity markets is reflected in the Sleepy Mini Portfolio, which swung from a 7.5% loss at the time of the last update to a gain of 1.1% at the end of May. The current portfolio holdings are:
TDB909 - Canadian Bonds - $570.05 (18.8%)
TDB900 - Canadian Equities - $621.73 (20.5%)
TDB902 - US Equities - $916.29 (30.2%)
TDB911 - International Equities - $924.43 (30.5%)
Total - $3,032.50
The last three months show the value of periodically adding to a portfolio and taking advantage of market declines. As per plan, we’ll add another $1,000 to the Sleepy Mini portfolio and rebalance it back to the initial target allocation - Bonds 20%, Canadian Equities 20%, US Equities 30% and International Equities 30%. Using the simple rebalancing spreadsheet, we can easily figure out the transactions we need to make:
Transactions:
TDB909 - TD Canadian Bond Index (e-Series) - Buy units for $236.45.
TDB900 - TD Canadian Index (e-Series) - Buy units for $184.77.
TDB902 - TD US Index (e-Series) - Buy units for $293.46.
TDB911 - TD International Index (e-Series) - Buy units for $285.32.
Investing so simple, you could do it with your eyes closed.
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10 responses so far ↓
1 MillionDollarJourney // Jun 2, 2008 at 9:10 pm
CC, u may have mentioned this before, but is your US index currency neutral ?
2 MillionDollarJourney // Jun 3, 2008 at 6:22 am
Nevermind, did some searching and found the answer. It seems that you write about currency hedging quite a bit.
3 Canadian Capitalist // Jun 3, 2008 at 7:40 am
FT: Yeah, I’ve done plenty of posts on currency hedging. None of the US index funds are currency neutral.
4 Big Cajun Man // Jun 4, 2008 at 8:37 am
When do you think you will change the percentages of investments in this portfolio?
–C8j
5 Canadian Capitalist // Jun 4, 2008 at 10:40 am
Big Cajun: It depends on what the portfolio is intended for. I have a similar portfolio for saving for our kids’ education and it will get more conservative quicker than our retirement portfolios. The portfolios become conservative by simply increasing the bond allocation. Since, we are adding money regularly, we can rebalance by channeling the new contributions appropriately.
6 Weekly Dividend Investing Roundup - June 7, 2008 » The Dividend Guy Blog // Jun 7, 2008 at 10:40 am
[...] Easy is always better - sleepy portfolio [...]
7 David // Jun 11, 2008 at 1:46 pm
According to Bespoke IG, Brazil, Russia, India, and China now make up about 12% of world stock market capitalization.
http://bespokeinvest.typepad.com/bespoke/2008/06/percent-of-worl.html
The Sleepy Mini Portfolio does not seem to include equities from any of these countries. Do you think it would it be worth it to include these markets? Do you know if TD eSeries has any plans to offer new products?
8 Canadian Capitalist // Jun 11, 2008 at 3:09 pm
David: The Mini portfolio is meant to be a small portfolio, so I’ve consciously decided not to include emerging markets as a cheap e-Series emerging market fund is not available.
The Sleepy Portfolio does have a 5% allocation to emerging markets via the VWO ETF. I think larger portfolios should definitely have exposure to emerging markets.
9 Max Money Blog - Stretch your dollar and grow your nest egg. » Experts: Passive Indexing Good For All // Jun 18, 2008 at 3:13 am
[...] around. Here are more Canadian examples. Here are more U.S. examples. Canadian Capitalist has the Sleepy Mini Portfolio and even yours truly has the One-Minute [...]
10 Canadian Business Blog » Blog Archive » Index fund endorsements // Jul 10, 2008 at 2:03 pm
[...] around. Here are more Canadian examples. Here are more U.S. examples. Canadian Capitalist has the Sleepy Mini Portfolio and even yours truly has the One-Minute [...]
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