Q: RE: I retired two years ago.
I hold roughly equal amounts of VUN and XUS in my RRSP. Both have performed well, and I now want to generate some cash. I’m trying to decide if I should trim both or just one? Selling VUN would reduce my portfolio risk more than selling XUS, correct? What are the pros and cons of each sell option? Thanks.
I hold roughly equal amounts of VUN and XUS in my RRSP. Both have performed well, and I now want to generate some cash. I’m trying to decide if I should trim both or just one? Selling VUN would reduce my portfolio risk more than selling XUS, correct? What are the pros and cons of each sell option? Thanks.
5i Research Answer:
The risk question is interesting. VUN as a 'total market' ETF has some different exposure than XUS which is the S&P 500. But there are some expensive mega-caps in the S&P 500, and some degree of concentration, with two stocks at more than 7% positions each. Thus, we would not see a dramatic difference here in risk overall. The decision really will depend on how the mega caps and the concentration of XUS do. With no tax consequences, we think selling some of both is the right move.