John DeGoey is vice-president and portfolio manager at BBSL. His focus is personal finance and ETFs.
iShares MSCI USA Minimum Volatility Index ETF (XMU.TO)
iShares MSCI USA Minimum Volatility Index ETF is a great way to get access to the still-growing U.S. market while minimizing volatility along the way. It is not currency-hedged. Actively consider reducing exposure to Canada.
iShares MSCI EAFE Minimum Volatility Index ETF (XMI.TO)
iShares MSCI EAFE Minimum Volatility Index ETF is a similarly useful way to invest internationally. Most of the developed world is still growing due to continued stimulus. Actively consider reducing exposure to Canada.
Vanguard FTSE All-World ex-Canada Index ETF (VXC.TO)
Vanguard FTSE All-World ex Canada Index ETF is a fantastic way to get low-cost global diversification while simultaneously reducing home country bias. As a core holding, it is especially suited to TFSAs and RESPs for young children.
Past Picks: September 2, 2014
BMO Global Infrastructure Index ETF (ZGI.TO)
Then: $31.59; Now: $34.41; +8.93%; Total return: +11.39%
iShares Global Agriculture Index ETF (COW.TO)
Then: $30.14; Now: $33.16; +10.02%; Total return: +11.19%
Vanguard FTSE All-World ex-Canada Index (VXC.TO)
Then: $25.83; Now: $30.43; +17.81%; Total return: +20.03%
Total Return Average: +14.20%
I recommend that people use market-based and/or evidence-based products and strategies. People should buy broadly-diversified investment products that cost little and have low turnover. They should re-balance periodically when their overall mix is out of line with targets. Owing to the perception that volatility is likely to be relatively higher in the next little while, I recommend that people maintain suitable equity exposure, but move to low-volatility products if they fear they might otherwise lose their resolve.