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Shedding Light on the “Light” Model ETF Portfolios

Apr 9, 2020

Justin has recently updated his Canadian Portfolio Manager (CPM) model ETF portfolios. There are now four CPM portfolio levels of complexity to choose from: Light, Ridiculous, Ludicrous or Plaid. Each of the models’ four levels is more difficult to manage than the last … and arguably, more powerful.

In this four-part podcast series, Justin will discuss each of his four model ETF portfolio levels in painstaking detail, starting with the Light portfolios. We’ll also lighten up the discussion with an ETF Kombat between two bond ETFs: VAB and VGAB. And after reviewing the advantages and disadvantages of the Light portfolios, we’ll answer a voicemail question from Emily in Vancouver, who would like to know how to tax efficiently reduce the risk of VGRO in a taxable account as she approaches retirement.

 

  • How to read the Vanguard and iShares Light model ETF portfolio reports [0:02:25.4]
  • Combining two asset allocation ETFs for a custom asset mix [0:03:07.4]
  • Introducing Justin’s foreign withholding tax ratio (or FWTR for short) [0:03:50.4]
  • 25 years of semi-fictional model ETF performance [0:04:17.4]
  • The worst 1-year portfolio returns over the past 25 years, and why you should pay close attention to these before investing [0:04:42.4]
  • The pros and cons of keeping your portfolio simple [0:05:04.4]
  • ETF Kombat: VAB vs. VGAB [0:08:55.4]
  • Equity home bias differences between the Vanguard and iShares asset allocation ETFs [0:14:00.4]
  • Foreign equity weighting differences between the Vanguard and iShares asset allocation ETFs [0:016:12.4]
  • Fixed income home bias differences between the Vanguard and iShares asset allocation ETFs [0:18:00.4]
  • Duration differences between the Vanguard and iShares asset allocation ETFs [0:19:05.4]
  • How these equity and fixed income differences would have impacted the historical risk and return of a balanced portfolio over the past 20 years [0:19:29.4]
  • Fee differences between the Vanguard and iShares asset allocation ETFs [0:20:11.4]
  • A look at the iShares and Vanguard rebalancing strategies for their asset allocation ETFs [0:20:42.4]
  • What is a pre-authorized cash contribution (PACC), and how do investors set one up for XBAL or XGRO? [0:22:39.4]
  • Voicemail Question: Emily from Vancouver asks Justin how she can reduce the risk of VGRO in a taxable account as she approaches retirement (without realizing big capital gains) [0:24:56.4]

 

Blog posts/resources discussed in this episode: