Seeing Diversification in Action
Why should you add multiple asset classes to your portfolio? That seems like a simple question, but it’s one many investors would answer with only a vague comment about “more diversification.” It’s mo [...]
Why Your Problem Is Not Your Funds
In Monday’s post I looked at “smart beta,” which promises to outperform cap-weighted indexing strategies. I’m frequently asked if I think Couch Potato investors should dump their traditional index fun [...]
Does “Smart Beta” Really Beat Cap-Weighting?
“Smart beta” has become a buzzword in investing circles, especially among pension funds and other institutional investors. The term may be new, but the idea isn’t: it’s about looking for ways to captu [...]
Norbert’s Gambit at CIBC: A Case Study
Norbert’s gambit is an excellent way to reduce the cost of converting Canadian and US dollars, but not every brokerage makes it easy. Recently Justin Bender helped a client of our DIY Investor Service [...]
Why Diversification is a Piece of Cake
After almost four years of false alarms, the bond bears are finally able to act smug. Broad-based Canadian bond index funds have fallen in price about 4% or so in since the beginning of May. Meanwhile [...]
The Wait is Over: New ETFs From Vanguard
“Ask and ye shall receive.” That should be the refrain of Couch Potato investors during the last 10 months or so as the industry has filled just about all the gaps in the ETF marketplace. First it was [...]
Is One Index Really Better Than Another?
Couch Potato investors try to capture the returns of entire asset classes rather selecting individual securities. And we do that with passively managed funds designed to track indexes that represent e [...]
Two Core ETFs Get New Indexes
Vanguard announced last October that it would be ending its relationship with MSCI, one of the largest index providers in the world, and using new benchmarks for many of its most popular ETFs. That tr [...]
ETF Investors: Avoid the After-Hours Club
One of the first rules of buying and selling ETFs is to always use limit orders, never market orders. A limit order allows you to specify the maximum price you’re willing to pay, or the minimum you’re [...]
It’s Time to Ban Advisor Commissions
Should financial advisors be banned from collecting commissions on mutual funds? That’s been hotly debated for years, and in December the Canadian Securities Administrators (CSA) issued a discussion p [...]
