How time flies! It is exactly six years, since the Sleepy Mini Portfolio was launched to demonstrate how a super simple, regular investment program can slowly but surely build wealth over a period of time. All you need to implement such an investment program are (1) some initial effort in mapping out an asset allocation strategy (2) a calculator to divvy up your regular contributions and (3) discipline to stick to the strategy through all kinds of market conditions.

The portfolio kicked off with an initial infusion of $1,000 with a target allocation of 20% bonds, 20% Canadian stocks, 30% US stocks and 30% International stocks. Another $1,000 was added to the portfolio every quarter since then for a total investment of $24,000 so far. Here’s how the portfolio looks as of September 11, 2013:

TDB909 – Canadian Bonds – $5,909 (19.4%)
TDB900 – Canadian Equities – $6,196 (20.3%)
TDB902 – US Equities – $9,021 (29.6%)
TDB911 – International Equities – $9,349 (30.7%)
Market value – $30,474
Total Invested – $24,000

I’m going to add another $1,000 to the portfolio and rebalance it to the original target allocation using this rebalancing spreadsheet. Here are the results:

Transactions

TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $385.
TDB900 – TD Canadian Index (e-Series) – Buy units for $100.
TDB902 – TD US Index (e-Series) – Buy units for $415.
TDB911 – TD International Index (e-Series) – Buy units for $100

Note that TD e-Series funds have a minimum purchase amount of $100. Therefore, the amounts used to purchase Canadian stocks and International stocks have been rounded up and the balance divided up to bring the allocations as close to target as possible.

Here are two charts: the first shows the YTD performance of the Sleepy Mini Portfolio and the second shows the performance of the Sleepy Mini Portfolio since inception.

sleepy_mini_portfolio_3Q_2013_ytd

sleepy_mini_portfolio_3Q_2013_since_inception

This article has 8 comments

  1. Thanks for keeping us updated!

  2. I enjoy these updates…shows the power of a simple investment plan.

    Mark

  3. Hey CC, I am pretty sure that you meant “buy TDB902” for $415

    • Canadian Capitalist

      @Peter: Good catch. Thanks.

      @Mark: Yup. This is simple as it gets and I follow a similar strategy for our kids RESPs and the results have been comparable.

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  5. Thank-you just updated mine as well… just over a year with same allocations 12% return.

  6. This is my first day on this site – heard about it from a friend. Looks like everyone here has had great success. My initial comment is: with bonds tanking, and likely to remain so with interest rates just starting to show movement upwards, would it not be prudent to leave alone the bond ETFs and bond funds for awhile (I wish I could define ‘awhile’!)

    • Canadian Capitalist

      @Newbie: Since, that would be second guessing what bond markets are going to do, the answer is no. Some market participants do think that bond yields will inevitably rise but on the opposite side of the trade are investors who think bond yields are not going anywhere. I have no idea who is right, so the prudent thing, IMO, is simply stick to the asset allocation of the portfolio.

      PS: I’ve been hearing the “bond yields are going to rise” ever since I started this blog. That was 9 years back!