Stitcher for Podcasts

Get the App Open App
Bummer! You're not a
Stitcher Premium subscriber yet.
Learn More
Start Free Trial
$4.99/Month after free trial

Episode Info

Episode Info: Diversification is an important part of risk management in a portfolio. Unfortunately, as with all things finance, there’s no simple diversification solution. This week, we address two diversification concerns: being too diversified and not being diversified enough. In my own portfolio, I pay attention to three diversification criteria, namely assets, regions and sectors. Since I want my portfolio to grow as much as possible, I prefer equities as an asset class. I don’t diversify this much, since I understand the risks involved and I have enough time to recover from market events. To diversify across regions, I choose equity-only investment products that invest in multiple regions. ETFs with world-wide exposure are excellent vehicles for regional diversification. In terms of sectoral diversification, I prefer investment products that invest in sectors relative to their importance in the overall market at the moment. I do this by avoiding sector-specific investments. My single ETF strategy also takes care of my diversification needs. When I can no longer afford single asset class exposure, I’ll have to start including assets that are less risky. For now, one ETF rules them all. Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Bhiri Can it be wrong to be too diversified? My portfolio is probably made up of 75/25 between ETFs and pure direct shares. The 25% shares I am not worried about as, as I get older this percentage will only get smaller and most of my investments will be in ETFs. I'm 37 now. I have the ASHT40, GIVRES, STXIND, S&P500, STXNDQ, SYGWD ETFs and also the STXPRO and SYGLB in my TFSA. Stefan I was doing some housekeeping on my two ETF portfolios. I ran a report on all dividends received in the 2018 calendar year. Even though my PTXTEN from a capital appreciation perspective is deep in the red, I was really happy with the total div received compared to all the other ETFs in my portfolio. My other property ETFs are not performing as well. For example CoreShares S&P Global Prop did about 50% of what my ptx 10 did. Which other ETFs have a similar yield? I would like to diversify and buy more etfs but with yield in mind for this particular portfolio. I’d also prefer etfs that are more geared towards global exposure.  It doesn’t have to be property. Matthew I have taken a more active approach to my TFSA and am now sorting out my TFSA with EasyEquites. Now that I have gained the confidence to self manage my TFSA, I am wondering if I should do the same with my RAs? Between a Retirement Annuity (RA) and a Tax Free Savings Account (TFSA), which should be prioritised? Is managing your own Retirement Annuity through a site like EasyEquities a viable option? I noticed the RAs have fact sheets and it feels similar to TFSA. The fees are also under one percent which is way cheaper than with my current provider. Do I have to take into account Reg 28 when I am investing on the platform? I currently assume all avai...
Read more »

Discover more stories like this.

Like Stitcher On Facebook


Episode Options

Listen Whenever

Similar Episodes

Related Episodes