These ETFs aim to cut portfolio risk

Article Excerpt

Diversification is a key part of our approach to successful investing. Done right, it can help investors cut the overall risk of their portfolios. Here’s a look at two different approaches: one ETF holds bonds in addition to stocks; the other invests globally in real estate stocks. Still, our approach to portfolio diversification generally takes a broader view. On page 109, we outline it. As well, we discuss other ways investors try to cut risk—including those we recommend and those we don’t. ISHARES CORE BALANCED ETF PORTFOLIO $24.44 (Toronto symbol XBAL; TSINetwork ETF Rating: Conservative; Market cap: $345.6 million) holds 60% of its assets in stocks and 40% in bonds. The largest proportion of the assets is in the U.S. (47%), followed by Canada (24%), Japan (6.1%), the U.K. (3.6%), and Switzerland (2.5%). Within the overall portfolio, 32% of the assets are invested in Canadian bonds, 27% in U.S. stocks, 15% in Canadian stocks, 15% in International stocks from developed markets, 8% in non-Canadian bonds, and…

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