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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU $42.52)
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Vanguard Total International Stock (VXUS $74.63)
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Vanguard FTSE Developed ex North America High Dividend Yield Index ETF (VIDY $39.34)
Q: I am thinking of selling my bonds for an an international (ex-North-America) ETF that is fairly non-volatile (defensive, consumer cyclical, industrial).
I heard this as a strategy in the Canadian Financial Summit and it made sense because the bonds I've held for stability offer less in returns and in stability than the diversification does.
I'd like to hear your opinion on this strategy. Can you also recommend 4-5 ETFs that would play well into this strategy.
Thanks as always.
I heard this as a strategy in the Canadian Financial Summit and it made sense because the bonds I've held for stability offer less in returns and in stability than the diversification does.
I'd like to hear your opinion on this strategy. Can you also recommend 4-5 ETFs that would play well into this strategy.
Thanks as always.
5i Research Answer:
A lot of people dislike bonds these days because of their weak performance from 2022 to 2024, while at the same time stocks surged. However, if interest rates continue to fall bonds should do better. Further, in a different type of market (risk-off) investors will likely appreciate bonds much more. But we do believe in equities still, and are fine with shifting exposure, if an investor understands the shift in risk. There are very few choices for ex-North America sector specific ETFs. Some generally conservative international ETFs: VIU, VIDY, VXUS.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VIDY.