Q: Retired, dividend-income investor. I've been pondering this question for months.
I run a concentrated portfolio, normally holding approximately 10 ETFs and 10-12 stocks.....plus fixed income. Over the years with 5iR, I have tried to follow your rough guidelines...as follows:
1. Target < 15% Covered Call ETFs => I'm just over 15%....ok as is.
2. Target < 15% per Fund company => I'm just over 16% with BMO ETFs (ZLB, ZUT, ZRE, ZWC), 15% with iShares (CDZ, XIT, XST), and < 5% with other funds (NNRG, HHL, HMAX, etc.).
If the target % is based on my entire portfolio, I am ok. However, if it is based on "equity-only", my #'s jump to 22%, 17% and 8% respectively.
Q#1 = please clarify Equity only vs entire portfolio. How much leeway is there if it is only on Equities?
3. CIPF insurance target < $1mm per account (TFSA/Cash total versus RRSP/RRIF total), allowing for the 50-50 spousal split on joint accounts. I'm ok currently, but starting to crowd the limit on one of these.
4. Then we throw in some of the recent questions about a very simplified portfolio based on only a handful of ETFs, so you would obviously be over the limits above.
Q#2 = how do we meet all of these potentially opposing targets?
Thanks....Steve
I run a concentrated portfolio, normally holding approximately 10 ETFs and 10-12 stocks.....plus fixed income. Over the years with 5iR, I have tried to follow your rough guidelines...as follows:
1. Target < 15% Covered Call ETFs => I'm just over 15%....ok as is.
2. Target < 15% per Fund company => I'm just over 16% with BMO ETFs (ZLB, ZUT, ZRE, ZWC), 15% with iShares (CDZ, XIT, XST), and < 5% with other funds (NNRG, HHL, HMAX, etc.).
If the target % is based on my entire portfolio, I am ok. However, if it is based on "equity-only", my #'s jump to 22%, 17% and 8% respectively.
Q#1 = please clarify Equity only vs entire portfolio. How much leeway is there if it is only on Equities?
3. CIPF insurance target < $1mm per account (TFSA/Cash total versus RRSP/RRIF total), allowing for the 50-50 spousal split on joint accounts. I'm ok currently, but starting to crowd the limit on one of these.
4. Then we throw in some of the recent questions about a very simplified portfolio based on only a handful of ETFs, so you would obviously be over the limits above.
Q#2 = how do we meet all of these potentially opposing targets?
Thanks....Steve
5i Research Answer:
Typically these are viewed as a proportion of equity only. However, since these are more diversified ETFs, we wouldn't really be concerned in the differences here between equity and total portfolio.
On CIPF limits, it is not shared across member firms, so if this was a concern, one could open accounts at a different firms and 'mirror' the current holdings to expand the CIPF limits. We don't know that it is necessary, but if it is of concern, it is an option. Doing this also doesn't need to impact the actual holdings of the total portfolio.