A while ago I asked for submissions for my “Ask Dave” series. Well now, contacting me is now easier than ever through my new contact form. It’s been a while since I had an “Ask Dave” post so if you have any burning questions, please send them along.
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Not just another (Canadian) financial blog… and maybe the oldest Canadian financial blog???
Hello from New West,
I just caught your post on your index portfolio and am thinking of doing something similar in my registered account which will be set up this year (still in my 20’s). Anyways, I’ve searched around but have only been able to find older (2 years or so) posts on the relative market-capped weights of the US, Canada, Asia Pacific and emerging in world markets. That is, how does one know how to rebalance from year to year xic.t, vwo, vea, and vti to create a balanced global portfolio according to market weights. I understand the US for example is losing weight to vea, money is flowing into Canada etc. Is there a good source for this info you know of?
Also, one question on this passive indexed style of investing. If you have a perfectly balanced global portfolio, would you not simply grow at or close to the global rate of inflation? That is, you’re basically investing in equity markets as a whole so would only be gaining based on the money that flows into equitys from other instruments such as fixed income etc. That should only really happen at the rate the money supply is expanding if my understanding is correct. You’re not really making a call on a country or a sector as such so if for example european markets do well with money flowing out of north-america, the passive global portfolio would remain essentially unchanged. I think I’m missing something something somewhere, just curious what.
Cheers,
Shane