The Canadian Investor

Portfolio Rules, Hedging Strategies, and Leveraging a Weak Loonie

Jan 9, 2025

Listeners are treated to insights on portfolio allocation, emphasizing the importance of tailoring strategies to fit personal goals and risk tolerance. The conversation delves into the complexities of the Canadian dollar, the benefits of hedged versus unhedged ETFs, and the challenges of managing a concentrated investment approach. There's a critical examination of the passive income trend and the risk of prioritizing immediate income over long-term growth. The hosts also explore various investment strategies, including income generation and inflation impacts, encouraging active portfolio evaluation.

01:02:38

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Quick takeaways

Individualizing your portfolio is crucial, as it should reflect your unique goals, risk tolerance, and financial situation.

Investors should be cautious with high-yield dividend ETFs, focusing on total return strategies rather than solely on yield sustainability.

Currency dynamics significantly affect investment returns, making it important to consider Canadian hedged ETFs when investing in U.S. dollar-denominated options.

Deep dives

Mailbag Episode Overview

The hosts engage with listener questions during a mailbag episode, addressing various investment topics. They note the current quietness in the investment landscape, punctuated by political news in Canada, such as the resignation of Prime Minister Trudeau. The discussion covers the relevance of holding portfolio diversity amid the stillness, prompting insights from listeners’ inquiries. Near the end of the episode, the hosts summarize their main points, offering thoughts about individual asset allocations.

Intro

2min

Navigating Canadian Dollar and Investment Strategies

10min

Navigating Currency and ETFs for Canadian Investors

16min

Concentrated Investing Strategies

7min

Navigating the Passive Income Trend

6min

The Trade-Off Between Immediate Income and Long-Term Growth

2min

Investment Strategies: Navigating Income and Returns

20min

In this episode, we tackle listener questions on portfolio allocation, diversification, and investment strategies. Simon and Dan share their personal approaches to asset, sector, and geographical weightings, emphasizing the importance of individualizing your portfolio to fit your goals, risk tolerance, and financial situation.

Tickers of Stocks/ETFs discussed: XYLD, SPY, VSP.TO, ZUE.TO, VFV.TO, VOO, XAW.TO

Check out our portfolio by going to Jointci.com