Measure It!

I will need a way to measure the performance of my portfolio. The best way is to compare it with the performance of a representative index: a predetermined set of assets that is broadly in line with my Investment Policy. To do this, I have selected four funds that represent my strategy:

  • 30% weighting in SPY: An S&P 500 ETF, denominated in US$
  • 25% weighting in XBB.TO: A broad bond fund
  • 35% weighting in XIU.TO: A TSX ETF
  • 10% weighting in PHY-U.TO: A gold trust

I will begin the index with a value of 100, representing the closing values of these funds on the last day of May 2011.


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