Over 98 % of active managers investing in global equities lagged their respective benchmark over the 10 - year period ending June 30, 2016, and over 96 % of active managers
invested in emerging market equities trailed their corresponding benchmark over the same period.
He says another 35 % should be put in fixed income in a mix of various short - term duration bond ETFs, 15 % in Canadian equity using an ETF such as the BlackRock XIU, 10 % U.S. equity using a product such as the SPY, 15 % global equity using a fund such as XIN, 10 %
in emerging market equity using a product such as VEE and 5 % in an innovative tech ETF.
For example, an allocation strategy might include the requirement to hold 30 %
in emerging market equities, 30 % in domestic blue chips and 40 % in government bonds with a corridor of + / - 5 % for each asset class.
My guest this week is Harvey Sawikin, a co-founder and lead portfolio manager at Firebird Management, which manages funds dedicated to investing
in emerging market equities.
He recommends that investors have 30 % of their funds in U.S. stocks, 15 % in Treasury bonds, 15 % in Treasury Inflation - Protected Securities, 15 % in Real Estate Investment Trusts, 15 % in foreign developed market equities, and 10 %
in emerging market equities.