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BMO Low Volatility Canadian Equity ETF (ZLB)
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BMO Low Volatility US Equity ETF (ZLU)
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iShares Core S&P 500 Index ETF (CAD-Hedged) (XSP)
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iShares S&P/TSX 60 Index ETF (XIU)
Q: I am thinking of setting up my portfolio with 25% positions in XIU, ZLB, XSP, ZLU. I am trying to avoid bonds and International stocks as they always seem to be a drag on the portfolio. With this arrangement I feel I have a better chance for returns closer to the market. With the low volatility ETF’s, I am hoping my positions would cause less volatility and would smooth out returns as the holdings in each are well correlated. Would you consider this plan to be too risky or would you have any other commentary or suggestions?
We would be fine with the names set up in this manner given the aversion of bonds and ex-North American market.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XIU.