John DeGoey is vice-president and associate portfolio manager at Burgeonvest Bick Securities. His focus is on personal finance and ETFs.
Top picks:
First Trust Senior Loan ETF (CAD-Hedged)
One of the very few income options that might not suffer in a rising rate environment, it also features low correlation to most other asset classes
Vanguard U.S. Total Market Index ETF
Gets you ridiculous diversification and access to the U.S. market for only 0.15 per cent.
Vanguard FTSE Developed ex North America Index ETF
Much like Vanguard U.S. Total Market Index ETF, only for the area outside North America and for 0.28 per cent.
Past Picks: September 4, 2012
iShares Emerging Market Minimum Volatility ETF
Then: $20.09
Now: $22.25
Total return: +12.21 per cent
iShares U.S. Minimum Volatility ETF
Then: $20.00
Now: $23.28
Total return: +18.44 per cent
iShares International (EAFE) Minimum
Then: $20.41
Now: $23.81
Total return: +18.99 per cent
Total return average: +16.55 per cent
Market outlook:
Prices are more or less fair at all times, and are just as likely to be too high as too low. As such, people should focus on setting an asset allocation that is suitable and then re-balancing as circumstances warrant. They should do so using products that are cost effective, tax-effective and broadly-diversified. The time and money spent in picking stocks, picking actively-managed mutual funds and timing market movements is almost certain to be wasted.