Back into Equities, using ETFs

At the end of March I decided to sell some of my equities and raise cash, also referred to as sell in May and go away.  Summer is over and I think it’s time to buy equities again.  But what to buy?

In May I assessed the performance of my investments during the prior 12 months.  The (rather unsatisfactory) conclusion was that my portfolio had under-performed a simple portfolio of four ETFs: US equities; Canadian equities; bonds and gold.  Accordingly, as I get back into equities I have decided to augment my existing stocks with two iShares ETFs: iShares Core S&P 500 ETF (IVV) and iShares S&P/TSX 60 Index Fund (XIU.TO).

  • BUY IVV @ $147.10
  • BUY XIU.TO @ $17.95

Let’s see if they outperform my equities, which remain:

  • Apple
  • Intel
  • BMO
  • Power Corp
  • Canadian Oil Sands
  • Telus

POSTMORTEM

Writing today, 21st October, this trade looks like a bad call.  IVV is $143.86 (down 2.2%) and XIU.TO is at $17.82 (down 0.7%).

As can be seen in the chart (below) it has been a very volatile month for these ETFs.

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