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Archive | Diversification

Ask Bender: Canadian Stocks vs. Global Stocks (Part II)

In my last blog post, we found that overweighting Canadian stocks by about 30% (relative to a global market capitalization equity weight of about 3%) had historically resulted in a less risky portfolio.  Obviously, this analysis gave no guarantee of the minimum risk portfolio going forward, but it did provide a useful starting point for […]

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Ask Bender: Canadian Stocks vs. Global Stocks

During periods when global stocks have been outperforming Canadian stocks, I receive a growing number of questions asking why my model ETF portfolios are skewed so heavily towards Canadian stocks (as one might imagine, I receive the opposite feedback when Canadian stocks are outperforming global stocks).  The argument usually goes something like this:  Canadian stocks […]

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Split the EAFE for better returns?

The MSCI EAFE Index is arguably the most popular international index on the block. Many active fund managers’ returns are benchmarked to this index (and the majority of them fail to outperform it).  Couch potato investors also tend to allocate a portion of their portfolios to ETFs that track the MSCI EAFE or a similar […]

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Ask Bender: Diversification of iShares ETFs vs. Vanguard ETFs

As new ETFs are released, it’s natural for index investors to succumb to what I like to call “ETF envy”. I often witness it when an ETF provider lowers their fees below that of their competitors’ – this is usually met with investor excitement as they frantically switch their higher-cost fund to the lower-cost alternative.  […]

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