Not exact matches
If you are a
Couch Potato investor, you don't actually need to benchmark your portfolio, since you are effectively replicating the benchmark with your strategy: index funds set out to deliver the same return
as the indexes.
But,
as Canadian
Couch Potato pointed out, a lower cost alternative to the iShares S&P / TSX ETF (XIU) is likely not the first thing that many
investors would wish for.
An
investor building a small Global
Couch Potato portfolio could use VXC in place of separate US and international holdings: that would reduce trading costs and complexity,
as well
as adding a bit more diversification with a slice of emerging markets.
We also hear from several other MoneySense and Canadian
Couch Potato readers: my thanks to all of them for sharing their experiences
as DIY index
investors.
As for
Couch Potato investors, index investing expert Dan Bortolotti's advice is simple: stick to your asset allocation and rebalance every six to 12 months.
I am seriously considering moving my entire portfolio into exchange - traded funds (ETFs) to lessen the management fees and follow a plan similar to the MoneySense
Couch Potato strategy, which requires minimum time commitment and management,
as I am a novice
investor.
I don't see either of these
as a significant offering for
Couch Potato investors, since you can already get both markets with a single fund.
Interestingly, after we recorded that (but before it went live), Dan Bortolotti (of Canadian
Couch Potato) gave the final talk of the Canadian Personal Finance Conference, where a major theme was the failings of
investor behaviour, and how he's grown more pessimistic over the years
as to how many people should be taking a DIY route to investing.
For many Canadians, Kirzner, now 73, is thought of
as the grandfather of «
Couch Potato» investing, or
as Kirzner refers to it, the «Easy Chair» — defined
as that comfortable spot where
investors like to sit and stay put for many years while the good returns roll in.
«The strategy can reduce a typical
investor's costs by
as much
as 90 %, while at the same time beating the vast majority of mutual funds and professionally managed accounts,» writes Dan Bortolotti in his exceptional blog, Canadian
Couch Potato.
It provides tools and templates, along with suggestions and rules - of - thumb to help prevent analysis paralysis and get you started
as a «
Couch Potato»
investor now.
As many people here know, I'm an index
investor and I use the
couch potato strategy.