Comments on: The 2005 Sleepy Portfolio Report Card

By: Sleepy Portfolio: Low-Cost, Low-Maintenance, Tax-Efficient, ETF Portfolio | Canadian Capitalist

Mon, 01 Jun 2009 21:18:12 +0000

[...] Sleepy Portfolio report cards: In 2005, the Portfolio was up 12.9%. In 2006, the Portfolio had another stellar year and was up 14.7%. In 2007, the Portfolio returned [...]

By: 3Q-2006 Report Card

3Q-2006 Report Card — Tue, 14 Aug 2007 16:01:59 +0000

[...] The 2005 Sleepy Portfolio Report Card [...]

By: Canadian Capitalist

Canadian Capitalist — Mon, 02 Jan 2006 23:16:07 +0000

Karl: Great question. I already use the sleepy portfolio for my Group RRSP and my sons’ RESPs. I built the portfolio to benchmark my returns. I’ve been beating the Sleepy Portfolio by at least a few % points for a few years now. If I start to trail the Sleepy badly for a few years, I would just switch to a passive portfolio.

By: Karl

Karl — Mon, 02 Jan 2006 19:53:41 +0000

Thanks again for the info. Finally – if you’re building a sleepy portfolio – why not use it? Is it because you are trying to use it as a benchmark and beat it?

By: Canadian Capitalist

Canadian Capitalist — Mon, 02 Jan 2006 15:41:24 +0000

Karl: Action Direct automatically reinvests dividends (I think ETFs are included, but I have to check). You have to call them to enroll. And they only reinvest in whole shares (and credit the rest of the cash dividends).

FC: When I came up with the Sleepy Portfolio, there were restrictions on the foreign content (I assumed the portfolio to be tax-deferred). If I were investing now, I’d go with the IVV and forego the forex hedging.

By: Frugal Canadian

Frugal Canadian — Sun, 01 Jan 2006 23:44:46 +0000

I’m curious as to why you chose XSP. I was recently looking for some US exposure and found that XSP primarily invested in iShares leaving a higher MER and lagged performance against IVE(iShares) and also VTV(Vanguard Value Vipers). Were you specifically looking for a protection from FX fluctuations?

By: Karl

Karl — Sun, 01 Jan 2006 20:02:42 +0000

In the past, you mentioned you use Action Direct. Does it automatically reinvest dividends for Barclays iUnits and other ETF’s? Do you have to request anything specific to hvae this happen?

By: Karl

Karl — Sun, 01 Jan 2006 19:28:19 +0000

Makes sense – thanks. I didn’t know about the change in purpose of XIC.

By: Canadian Capitalist

Canadian Capitalist — Sun, 01 Jan 2006 15:42:47 +0000

Karl: I chose XIC because it was a capped version of the XIU. But, now the XIC tracks the TSX Capped Composite (Barclays recently changed the investment objective of the fund), which is far more diversified and has some weighting in mid-caps (14%) and small-caps (9%). If I were investing now, I would consider just the XIC instead of the XIC and the XMD (which has a 0.55% MER).

By: Karl

Karl — Sun, 01 Jan 2006 01:48:37 +0000

What was your rationale for choosing XIC over XIU? XIC can protect you when the TSX is weighted by a particular stock (i.e. Nortel) that goes south. Currently, however, no stock exceeds 10% of the index, and therefore there should be no upside risk to XIU. It appears the only thing XIC will do is limit gains if a stock or two were to break the 10% barrier. Thoughts?