REITs have been among the best-performing asset classes over the past 5 years and odds are they are going to under perform other asset classes in the future. Still, I am going to invest the other portion of the Sleepy Portfolio in the iUnits TSX Capped REIT Fund (TSX: XRE). The expense ratio for the iREIT fund is a bit on the higher side at 0.55% and yields about 5.9%.

Jan 4, 2005: Buy TSX: XRE 400@$11.60 + commission $29.95 = $4669.95

The Sleepy Portfolio is an asset-allocation driven, fairly low-cost portfolio with even the most expensive fund has a MER of only 0.75%. In investing about $100,000, we have spent about $300 in commissions (about 0.3%). To keep things simple, the portfolio has only 10 funds in it. It can be tweaked further by:

  1. The equity portion of the portfolio has a low dividend yield. It might make sense to allocate some of the US large-cap portion to high-yield ETFs like the iShares Dow Jones Select Dividend (DVY).
  2. The portfolio can be given a value tilt by splitting the US equity portions into two and investing half in the value version of the respective indices.
  3. Probably the best option for the bond portion of the portfolio is laddering the bond maturities and also considering investing in Real Return Bonds.

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