Saturday, January 18, 2014

Not three weeks into the year and up 1.16%

I track what I call a Rocking Chair Portfolio designed for old geezers like me. It uses TD e-funds. These are mutual funds sold by the TD bank that are only available online. The MERs are quite low. I have set up a phantom portfolio composed of about 45 percent of a Canadian bond fund blended with about 15 percent of each of the following indexes: Canadian, U.S., and International, plus about 10 percent in cash sitting in a cash fund paying 1.25 percent interest. The Rocking Chair is up 1.16 percent so far this year.

My simple fall back investment, the TD Monthly Income, is up about .7 percent.

Another faux fund I have created is is composed of three iShare ETFs plus a the same cash fund I used above. This is the TD Investment Savings Account fund (TDB8150). I use this fund in my own portfolio. It doesn't pay a lot but 1.25 percent is better than many of the alternatives. The mix of this iShares portfolio is about 30 percent bonds (XSB), about 35 percent Canadian equities (XIC), about 15 percent U.S. equities and the remaining 20 percent in cash. This very conservative portfolio is up .92 percent.

Another portfolio which contains a big whack of REITs in the form of iShares XRE along with both Real Return Bonds (XRB) and the XSB ETF and a sampling of equities from Canada, the U.S. and the International markets is up .85 percent.

And me? How am I doing? Duh, not so well. I'm up maybe .4 percent. I have strayed a long way off the ETF path and, at the moment, I am not being rewarded for my daring investment adventures. My gold stock, BTO, is showing signs of life but nothing is soaring to new, great heights at the moment.

It will be interesting to see how these funds are doing three months from now. At that time I should have a clear idea as to how much dividend income is being produced by both my portfolio and by may faux portfolios.

Setting up these faux funds was easy using WebBroker. And the software even tracks the dividends. Very nice.

It should be noted that some mutual funds are up more than three percent today. These funds are blowing the socks off my little no-brainer portfolios. The downside to some of these funds is the large amount of return of capital (ROC) contained in their distributions. Here is an interesting link: 2013 Target Distribution Rates. Some are disconcertingly high.

Still, the big winner of the year is my barbell portfolio. This big risk taker is up something in the range of a full five percent.







No comments:

Post a Comment