Canadian Capitalist Logo Dark
No Result
View All Result
Sunday, May 18, 2025
  • Login
  • Register
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
Subscribe
Canadian Capitalist Logo Light
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
No Result
View All Result
Canadian Capitalist Logo Mobile
No Result
View All Result
Home Investing

The 2012 Sleepy Portfolio Report Card

by Ram Balakrishnan
January 28, 2013
Reading Time: 3 mins read
128 7
0
what mortgage can i afford
154
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Background

I started the Sleepy Portfolio in 2005 to benchmark my personal portfolio, which at that time was mostly invested in individual stocks. The portfolio started off with an initial outlay of $100,000 but no new money has been added since. This is not simply a model portfolio; it reflects investment returns that can be obtained in the real world by accounting for costs such as spreads, trading commissions, MERs, foreign exchange conversion charges etc. For example, when the portfolio was first assembled in 2005, it cost $29 to make a trade and 1.5 percent to initially convert Canadian dollars to buy US securities. Note, however, that the portfolio is assumed to be held in a registered account, so it does not take taxes into account.

The portfolio has a target allocation of 5% cash, 15% short bonds, 5% real return bonds, 20% Canadian stocks, 22.5% US stocks, 22.5% Europe and Pacific, 5% Emerging markets and 5% REITs. The entire portfolio (apart from the cash portion) is invested in broad-market, exchange-traded funds (ETFs) trading in the Canadian and US stock exchanges. The cash portion is invested in a high-interest savings account that is available through many discount brokers.

4Q-2012 Update

The Sleepy Portfolio gained 2.52 percent since my previous update. During the calendar year 2012, the Sleepy Portfolio gained exactly 10 percent. It is instructive to compare the current portfolio holdings with that of year end 2011. We find that over the course of the year, positions in real return bonds and REITs were trimmed back and additions were made to positions in Canadian equity, Developed Markets ex US and emerging markets. Rebalancing the portfolio helped because developed markets and emerging markets were among the best performing asset classes of 2012.

Here’s how the portfolio looked as of December 31, 2012:

Asset TypeSecurity#sPriceCurrent Value% PortfolioTarget %Delta
CashTDB81509144$1$9,1446.34%5.00%-1.34%
BondsTSX: XSB705$29$20,30414.07%15.00%0.93%
 TSX: XRB275$26$7,0904.91%5.00%0.09%
Canada EquityTSX: XIC1445$20$28,38019.66%20.00%0.34%
US EquityVTI440$73$32,06322.22%22.50%0.28%
International EquityVEA945$35$33,10622.94%22.50%-0.44%
Emerging MarketsVWO170$45$7,5285.22%5.00%-0.22%
OtherTSX: XRE392$17$6,7114.65%5.00%0.35%
Total   $144,325  

There will be no new transactions because all asset classes are now more or less on target.

Portfolio Expenses

It is worth noting that the weighted average MER of the portfolio is currently a miserly 0.21 percent. That means the portfolio incurs a MER cost of just under $210 per year per $100,000 balance. If the same portfolio were invested in typical Canadian mutual funds that charge a MER of 2.5 percent, the MER cost would be $2,500.

Of course, a portfolio composed of ETFs will incur trading costs. But the Sleepy Portfolio gets by with very little trading. During the last year, five trades were made in the portfolio for a total trading cost of $50. The portfolio also incurred costs involved in converting currency to purchase US-listed ETFs. These costs added up to about $51. Expressed as a percentage of average portfolio value during the year, trading costs amounted to just under 4 basis points. The total expenses incurred by the portfolio in 2012 was therefore just 25 basis points.

Related posts:

  1. Book Review: The Investment Zoo
  2. Finding a Financial Advisor, Part 3
  3. The Sleepy Portfolio Summary
  4. A Safe Haven in Uncertain Times: Why Gold and Silver Should be Part of Your 2023 Investment Strategy
Share62Tweet39Share11

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Group RESP Plans are Loaded with Fees

Next Post

A look at the Performance of the BMO Covered Call Canadian Banks ETF (ZWB)

Ram Balakrishnan

Ram Balakrishnan

Related Posts

The Crypto Market: On the Brink of Collapse or Just Hitting a Rough Patch?
Economy

Cryptocurrency: A Fading Trend or a Revolution?

January 19, 2023
2.2k
ETFs Demystified: How to Pick the Right Exchange-Traded Fund for Your Investment Strategy.
Investing

Simplifying the ETF Selection Process: A Step-by-Step Guide to Finding the Perfect Fund

January 18, 2023
2.3k
Examining the risks faced by retirees who rely on fixed income sources and the steps that can be taken to protect savings and retirement income.
Investing

The Hidden Threat of Inflation on Retirement Savings

January 16, 2023
2.1k
Investing in gold and silver can be a great way for beginners to diversify their investment portfolio and hedge against inflation.
Investing

A Safe Haven in Uncertain Times: Why Gold and Silver Should be Part of Your 2023 Investment Strategy

January 13, 2023
2.2k
Investing

Questrade vs Wealthsimple 2023 Update: Breaking Down the Differences for Canadian Investor

January 11, 2023
2.4k
aerial photography of rural
Real Estate

First-Time Homebuyers: Is the First Home Savings Account (FHSA) Right for You?

January 9, 2023
2.3k
Next Post
employee stock options plan

A look at the Performance of the BMO Covered Call Canadian Banks ETF (ZWB)

Please login to join discussion
Canadian Capitalist

© 2022 Canadian Capitalist

Navigate Site

  • Home
  • Disclaimer
  • Privacy Policy
  • Advertisement
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources

© 2022 Canadian Capitalist

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
two man and woman standing on doorway
The man who does not read has no advantage over the man who cannot read - Mark Twain