Vanguard is amazing. Full stop. I had been wondering how to work VGRO into my CCPC portfolio. Apparently the premium bonds were taxed very inefficiently.
As I had been wondering about this, Vanguard has responded with VEQT, the Vanguard All- Equity ETF portfolio. Sweet.
I can now move my 3 fund model to a 2 fund model now.
I will likely hold ZDB which is a discount bond ETF and laddered GIC’s or HISA depending on the 5 year GIC rates. It is not always worthwhile locking the money up when the rates are so low.
Yes, the purists will say that it is cheaper to use VCN and XAW. It most certainly is. But less is often better for me behaviorally.
Now I can round out the use of these asset allocation ETFs for my taxable accounts. It had been the bond component which was holding me back for the past year. No one wants to be taxed inefficiently on purpose.
VEQT started trading yesterday on Chinese New Year. It is Year of the Pig.
I will see how others will structure this into their portfolios.
Anything that will allow me to manage my portfolio easier is a welcome addition. I foresee using VGRO for all the tax free and tax deferred accounts.
Then use VEQT for the taxable accounts.
Now if Blackrock responds with their own all equity ETF, it will be interesting to see if tax loss harvesting will be possible with these asset allocation ETFs.
Regardless this is a welcome addition. I am seriously looking forward to see how Justin Bender and Dan Bortolotti recommend folks use these. Their recommendations thus far have been spot on. They are such a massive resource.
I always appreciate how they tend to see the bigger picture and advise simplicity where they can.
As I often believe, the investing side is dead simple when it comes to paper investing. It will be how one designs their financial lives to mitigate one’s bad behaviours which will make the difference.
Things certainly seem to be moving in the right direction in Canada for DIY investors.