These three ETFs rely on asset allocation

Fund providers in Canada and the U.S. continue to actively introduce new ETFs. This month we highlight three recent additions.
Bank of Montreal (BMO) recently launched three asset allocation ETFs that invest in other BMO ETFs.
Each of the three ETFs acts as “fund of funds,” with its… Read More

Q: Hello, Pat. I always look forward to your reports. Thanks. What is your take on the new Vanguard Asset Allocation ETFs—VCNS, VBAL, VGRO? Each is a collection of several different ETFs, some of those ETFs holding stocks and some holding bonds. Are the fees more? Thank you.

A: The Vanguard Conservative ETF Portfolio, $24.70, symbol VCNS on Toronto, holds roughly 40% of its assets in Vanguard stock ETFs and 60% in bond ETFs. This $27 million ETF started up on January 25, 2018, and has a 0.22% MER.

The Vanguard Balanced ETF Portfolio,… Read More

How to pick the best long term mutual funds

How to pick the best long term mutual funds

The best long term mutual funds hold well-diversified portfolios of high quality stocks—stocks you can hold for a long time.
The topic of how to pick the best long-term mutual funds came up at the office recently. About a month ago, a friend’s son was considering… Read More

Why asset allocation funds rarely get it right

Asset allocation funds are mutual funds whose managers believe they can improve returns and/or reduce risk by switching back and forth among stocks, bonds and cash. Many in the investment industry promote these funds as a simple and profitable way to assemble a diversified… Read More