Q: Hi Peter and team,
Portfolio Analytics indicates a need to increase our Consumer Defensive sector holdings. Across our combined accounts for this sector, we also hold COST and DOL, as well as two ETFs (ZLB with 19% representation, and XST with 71.5% representation in this sector.)
I am considering adding roughly equal amounts of L and JWEL to achieve the goal, and realize that L is much larger than JWEL, as well as being more defensive. But I do note that JWEL appears to have greater momentum presently and has a higher dividend as well.
PA classifies our portfolio as ‘Risk Managed Growth’, and L and JWEL would go into an 82-year-old’s RRIF.
Would you endorse such a plan? I’d also change the 50/50 allocation if you suggest this.
As always, thanks for your assistance.
Portfolio Analytics indicates a need to increase our Consumer Defensive sector holdings. Across our combined accounts for this sector, we also hold COST and DOL, as well as two ETFs (ZLB with 19% representation, and XST with 71.5% representation in this sector.)
I am considering adding roughly equal amounts of L and JWEL to achieve the goal, and realize that L is much larger than JWEL, as well as being more defensive. But I do note that JWEL appears to have greater momentum presently and has a higher dividend as well.
PA classifies our portfolio as ‘Risk Managed Growth’, and L and JWEL would go into an 82-year-old’s RRIF.
Would you endorse such a plan? I’d also change the 50/50 allocation if you suggest this.
As always, thanks for your assistance.
5i Research Answer:
JWEL has potential and momentum, but it is significantly smaller and we would consider it much riskier overall, especially for a conservative (i.e. older) investor. To reflect this, we think a 75/25 allocation would be better with a smaller allocation to a riskier name.