Vintage ferris wheel

Reshuffling The Portfolio

Byadmin

I should leave my portfolio as it is. I should not look at it or touch it.

But I have these days where I get frustrated with investments that I put a lot of thought into and went nowhere. Meanwhile, the S&P 500 keeps chugging along.

So yesterday, partly out of boredom and partly out of strategy, I decided to sell some of the underperformers and push more into stocks.

Sold:

  • BMO LOW VOLATILITY CANADIAN EQUITY ETF (ZLB)
  • TRUE NORTH COML REAL ESTATE INVT TR (TNT.UN)
  • BMO MONEY MARKET FUND ETF (ZMMK)
  • ISHARES CORE DIVIDEND GROWTH ETF (DGRO)
  • BMO ULTRA SHORT-TERM BD FD (ZST)

That ended up being a lot of money in real dollar terms. About 15% of my holdings.

Bought:

  • VANGUARD FTSE CDA ALL CAP INDEX ETF (VCN)
  • HAMILTON ENHANCED MULTI-SECTOR COVERED CALL ETF (HDIV)
  • VANGUARD GROWTH ETF (VGRO)
  • VANGUARD S&P 500 INDEX ETF (VFV)
  • HAMILTON ENHANCED U.S. COVERED CALL ETF (HYLD)

My thought process was a few things.

First, I wanted to take the profits on TNT, since that stock was up 35% from my purchase just a few months ago. It did what I expected it to do, and there was no sense waiting around for a few more dollars, which may or may not come any time soon.

Second, I wanted to sell the “Dividend Growth” ETFs because I’ve come back around on those. The dividends are low (2%), and the growth isn’t there. They completely missed the recovery in stocks.

Third, the low-volatility ETFs have been great during stock market volatility but don’t return much in booms either. Might as well put those into broad Canadian stocks.

And last, deploy the cash out of money markets and into stocks since I have enough cash elsewhere.

So I pulled the trigger and sold a lot of stuff. And then turned around and bought some stuff.

Vanguard Canada All Cap holds a broad range of Canadian stocks. I know Canada underperforms the US market, but I want to hold some stuff outside of the US for diversity. VCN holds the banks, Shopify, gas companies, railways, real estate… all the Canadian staples. This is only about 2% of my holdings, so not much.

Vanguard Growth ETF is a nice swap from the dividend growth one. VGRO is an 80/20 mix between stocks and bonds, so there’s some built-in stability there. This could be a nice “all-in-one” ETF that I will consider owning a lot of in the future. It’s diversified between the US, Canada, Japan, UK, China, and some other countries. So it’s got a global mix. It has the typical allocations to Apple, Microsoft, Royal Bank, TD Bank, Amazon, etc. Big companies.

I also bought some more Vanguard S&P 500 (VFV), which I already owned and have done well.

Rounding out the mix are HYLD and HDIV, which I also already owned for some high-distribution returns. These stocks have not had capital gains but have returned 10%+ in the last year and kept their value.

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