The Canadian Capitalist once again posted the results of his sleepy portfolio, the portfolio he constructed using only passive index funds, which he uses as his own personal benchmark to which he can compare his own performance. Based on the sleepy portfolio’s stellar performance, I wonder if he’ll stop investing in individual stocks so much in the future and invest in more passive index ETFs instead.
This is basically the type of portfolio that I want to switch over to gradually. All passive index-passed. I’ll probably switch over slowly though, I don’t want to sell my mutual funds just yet. Selling now might get me back in the mentality of selling things and chasing returns which I used to do before. I’ll start by putting all the my new cash contributions coming in into index ETFs, then when the mutual fund parts get small enough I might get rid of them.
I’ll post about the details of my plan:
– become completely indexed in bonds, US and International equities.
– I will pick stocks to represent my Canadian equity allocation.
– Most of my US equities were purchased years ago; I will be selling them as opportunity presents and buy ETFs with the proceeds.
– as I mentioned in my report card, a bigger % of our portfolios is now indexed compared to last year.