This model ETF portfolio is designed to be low cost, balanced, and globally diversified. It consists of using Index ETFs to passively capture market returns at much lower costs than active mutual funds. Active mutual funds often carry MER fees (management expense ratio fees) of 2 to 3% of the total fund value each year. The recommended Index ETFs in this model portfolio is less than 0.2%.
My recommended portfolio is based on having an allocation of 75% equity (split evenly between Canada, US, and International markets) and 25% fixed income which may or may not suit your risk tolerance. It is recommended you have a discussion with your financial planner on your goals, time-frame, and risk tolerance before making any changes to your portfolio.
ETF Portfolio
Recommended Asset Allocation
Using a Robo-advisor is a low cost method to building a portfolio of ETFs without having to manage them yourself. The Fee for a robo-advisor like Wealthsimple is 0.5% (plus the ETF MER of 0.2%) but the added convenience and simplicity can be worth it.
To learn more about Index ETFs, click here
To learn more about Mutual Fund Fees, click here
To learn more about Robo-Advisors, click here