Three top ETF picks from BBSL’s John DeGoey

John DeGoey is vice-president and portfolio manager at BBSL. His focus is personal finance and ETFs.

Top Picks:

Vanguard FTSE All-World ex Canada Index ETF (VXC TSX)

People need to overcome their home country bias and this product provides a great way to do so.

Vanguard S&P 500 Index ETF (VFV TSX)

Now available with a 0.08-per-cent management fee! This is a great way for Canadians to get access to the U.S. in Canadian dollars with no currency hedge.

Vanguard FTSE Emerging Markets Index ETF (VEE TSX)

Now available with a 0.23-per-cent management fee! This remains the most under-owned asset class in the world and it has never been more accessible.

Past Picks: November 4, 2013

Vanguard FTSE Canada All Cap Index ETF (VCN TSX)

Then: $26.62; Now: $29.27 +9.95%; Total return: +11.73%

Vanguard U.S. Total Market Index ETF (VUN TSX)

Then: $26.03; Now: $32.29 +24.05%; Total return: +25.81%

Vanguard FTSE Developed ex North America Index ETF (VDU TSX)

Then: $26.72; Now: $28.00 +4.79%; Total return: +7.54%

Total return average: +15.03%

Market outlook:

I laugh when I read about stock pickers who say "this is a stock picker's market". I have never heard a stock picker acknowledge when we are NOT in a stock picker's market, and if they believe we are in a perpetual picker's market, they should say so instead of implying circumstantiality. All stock picking is zero sum, meaning that whenever one stock picker gains as a result of a trade, the stock picker that s/he is trading with loses by an equal amount. As such, stock picking is a mug's game in aggregate. Furthermore, when adding transaction charges and taxes, stock pickers lag their benchmarks. The semi-annual SPIVA reports show this conclusively. For more info, visit: www.johndegoey.com.