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iShares Core S&P/TSX Capped Composite Index ETF (XIC $43.16)
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SPDR S&P 500 ETF Trust (SPY $621.72)
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iShares MSCI EAFE ETF (EFA $87.29)
Q: Rebalancing my portfolio vs risk for a young retired.
My portfolio consist in 23% bond ETFs, 37% US, 11% International, no emerging market and 29% Canada. I am ready to take on some EEM. What would be your allocation of funds from here? All current assets would trigger capital gains excepts for bunds which I wouldn't touch and may raise the amount over time. I may take 6 months to do part of the allocation due to capital gains tax hit.
Thank you for your precious advise over the years you have been a tremendous help to grow my portfolio and help navigate dangerous times.
Yves
My portfolio consist in 23% bond ETFs, 37% US, 11% International, no emerging market and 29% Canada. I am ready to take on some EEM. What would be your allocation of funds from here? All current assets would trigger capital gains excepts for bunds which I wouldn't touch and may raise the amount over time. I may take 6 months to do part of the allocation due to capital gains tax hit.
Thank you for your precious advise over the years you have been a tremendous help to grow my portfolio and help navigate dangerous times.
Yves
5i Research Answer:
The 'right' amount of emerging market exposure really comes down to personal preference. Broadly, something in the range of 10% to 20% for EM exposure probably makes sense in general terms with 20% maybe being a bit on the higher/aggressive side. This range should be large enough that it adds diversification/value to a portfolio but not so large that it hampers returns materially if EM doesn't do much in the medium term.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in SPY.