Recently I joined the Facebook group Canadian Dividend Investing. Someone expressed interest in the Frugal Dividend Portfolio created by Norman Rothery. The question piqued my interest and I turned to the Ai search engine Perplexity. It returned the following:
There is a way to create and back-test a portfolio of Canadian stocks and ETFs. How? Use the Portfolio Visualizer tool. It lets you construct one or more portfolios based on selected mutual funds, ETFs, and stocks. You can then analyze and backtest the portfolio returns, risk characteristics, style exposures, and drawdowns over a specified time period. To create and back-test a portfolio of Canadian stocks and ETFs using the Portfolio Visualizer:
- Go to the Portfolio Visualizer website at https://www.portfoliovisualizer.com/backtest-portfolio
- In the "Portfolio Allocation" section, you can add the Canadian stocks and ETFs you want to include in your portfolio. You can search for and select the specific funds you want to use.
- Set the time period you want to backtest, such as the past 3 years.
- The tool will then analyze the historical performance of your portfolio and provide detailed metrics like returns, risk, and diversification.
This allows you to see how your selected mix of Canadian investments would have performed over the past 3 years, which can help you evaluate and refine your portfolio before investing real money. The Portfolio Visualizer is a useful tool for building and testing investment portfolios.
There are three versions of the Portfolio Visualizer and one is free. As is to be expected, it does not deliver all the bells and whistles of the other two but it is amazingly good. It is certainly worth a look. I wonder how long the free version will remain available online.
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