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My Canadian Permanent/Variable Portfolio

Posted: Mon May 21, 2012 3:49 pm
by davidns
I just set up an account at a discount brokerage. I will be implementing a Canadian permanent portfolio as follows

Stocks: ishares S&P/TSX Capped Composite Index Fund (XIC)

Gold: ishares Gold Bullion Fund (CGL.C)

Cash: BMO Short Federal Bond Index ETF (ZFS)

Bonds: BMO Long Federal Bond ETF (ZFL)

20% of the contributions I make will go towards my variable portfolio, which will consist of a 3-way split between American, EAFE, and Emerging Markets funds. This will give me a chance at some aggressive growth while still keeping the bulk of my money safe. I will enact a one-way rebalancing strategy. If the variable portfolio grows to 25% of my total holdings, I will sell off some of the funds and buy more permanent portfolio assets. If my variable portfolio tanks, I will leave it be.

I'm a student, so my funds are rather limited. Once I am out of school and making more money, I will look at purchasing bonds/gold directly. Any thoughts/advice?

Re: My Canadian Permanent/Variable Portfolio

Posted: Mon May 21, 2012 7:59 pm
by Gosso
Looks good to me.  Nice and simple.  I think the VP also nicely complements the PP.