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.