Larry Berman CFA, CMT, CTA
iShares Core Equity ETF Portfolio
XEQT-T
BUY
May 10, 2021
A way to play the global market place. It is weighted half in the US market, 24% in Canada and emerging markets at 5%. International developed markets account for 25%. This ETF is overweight Canada. Good for when financials and energy does well. In the big picture, the Canadian plays will not do as well as they have done in the last year. A good ETF to get broad exposure.
Getting about 50% US, 25% Canada and then 22% international developed markets, with the rest in emerging markets. Canada is however 3% of the global index. It is overweight Canada. If you think Canadian banks and energy will lead, then it is okay. Value is far more in the international markets than US large caps.
He has issues with fixed income. You need fixed income to have a stable return. However, bond yields are so low that this part of the portfolio is impaired. Fixed income in the foreseeable future is not something investors should have. Need active strategy to deliver value in fixed income.
Generally doesn't like these ETFs which are too broad geographically, over-diversified. Maybe if you have a little bit of money to invest broadly, okay. Otherwise, no.
Great product that would recommend buying. All equity option for investors, would recommend a small portion that is good for long term investors. Broad exposure that investors can buy, and "forget" about for 10 years. Cheap management fees.
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