Opinions
John DeGoey
iShares MSCI World Index Fund
XWD-T
COMMENT
Jul 07, 2014
$34.310
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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BUY
Is it smart to buy two diversified ETFs then take a single position out? No, he doesn't recommend nor use single stock positions. If you want one single ETF, look at XWD. It spans the world (large-cap, blue-chip and diverse) and it has gotten off to a great start this year. He prefers ETFs that are cheaper than most, but not the cheapest, because he prefers ETFs that are factor-based which will cost 35 basis points. The 35 basis points are worth it than a no-frills, super-low MER ETF.
E.T.F.'s
COMMENT
Growth potential? It's good for growth, especially with a long-term horizon. An even better way to harness market beta is XMW, which a minimum-volatility index ETF and reduces the risk of high-risk stocks by excluding them. You'll get the same long-term returns, maybe higher, but at lower risk. A smoother ride.
E.T.F.'s
BUY
Global ETF to balance out the overweight in Canadian stocks?
A Morgan Stanley world index ETF would be good and simple. Because the US is so dominant in market-weighted indices, a Morgan Stanley ETF will have 70% in US stocks. But you're getting global diversification, not EMs. That will be somewhat of an offset.
It'll be very conservative.
E.T.F.'s
Not big on dividends necessarily, but huge on global diversification. This gives you large and small caps, many of which are paying dividends, but that is not the driver of that bus.