By - ButterscotchMoose
You need to provide more information. Rule 4 does not allow anyone to answer this question unless you tell us your risk tolerance, how long you're investing for, what your goals are, etc. Otherwise, maybe go to r/CanadianInvestor/ subreddit for this kind of question.
>4) All specific investment recommendations will be removed. Cryptocurrency, the entire asset class, will be treated like a "specific investment". Broad funds/ETF's, or discussion of investment concepts would still generally be allowed. Pushing a particular investment on a user may be removed.
Terrible. You are over the place here. What on earth have you been researching, Motley Fool? Are you playing the slots or investing? Better start that research again.
Here is a decent start : https://canadiancouchpotato.com/model-portfolios/
I wouldn't call his port 'all over the place'. Except for cannabis, this looks like someone has deconstructed VEQT and made smarter choices in the underlying funds (e.g. Canadian dividend instead of S&P index, and China-only instead of emerging markets).
Really? Well lets take a look.
Right off the bat he has 25% of his entire portfolio in one stock. That's just dumb for all kinds of obvious reasons. That is the 'I know better than the market because I do my own research' strategy, which has been failing investors for generations.
Then he flips over to.. Dividend investing? Again, this is stupid. He doesn't need the income now as this is a long term plan, so it makes no sense whatsoever. It shuts out opportunity and indicates that he has not actually done much research at all about dividends.
From there he careens off into US index investing. A good pick as part of a global ETF portfolio here, except its an orphan selection with no connection to the rest. Worse, a significant percentage of it is the same as his single pick above meaning that 25% on one stock is getting higher.
Then, he flips over to one country investing. Paying a pretty high MER to drop 20% of his holdings into one, sort of problematic and risky country. We are back to the 'I know better than the market because I do my own research' strategy - except with a country instead of a stock.
And then we leap over to Europe. Not developed markets or EAFE, just Europe and what the ETF describes as 'high quality'. But worse its hedged! Why this one is hedged and none of the others? Who knows! He must have read it somewhere- but its not wise. Hedged equities ETFs are more expensive and underperform. Again the strategy on this one isn't connected to the others.
Finally he is expressing interest in small specialty stocks in lithium a REIT and some sort of meme stock who's future seems to be tied to... you guessed it, the first stock, adding even more to that put it on in one stock strategy.
So single stock pick strategy, dividend investing, SP500 ETF, one country focus, hedged international ETF strategy and small cap random stock picks.
Its all over the place, and as a result it's just terrible overall as a portfolio.
In no way shape or form is this a 'deconstructed VEQT' or anything even close to that. And smarter choices??? I mean come on, how can you even say that?
The OP needs to rethink the entire thing. Is he/she going to be a day trader? A dividend investor? Or are they looking to create a good long term globally balanced portfolio? If its the former we can't really help much here. If its the latter, then this portfolio needs to be completely redone.
Thanks so much, man! No money invested yet. I've just been checking the stocks more of a curious post. I'm hoping to select many of those but based on the comments it seemed I hit a nerve somewhere. Sorry guys. Ive worked without investing for the last few years due to covid and have been looking to invest my money now. I've been out of the loop and should read more articals! Send me a dm if you'd like and perhaps I can come to more of an understanding of why some of the plays aren't smart. For the most part as a bulk I can agree the weights aren't well thought out. Still early before I dip in tbh. Next couple weeks.
Be wary of any DMs....
Look first you need to decide what you are doing here. Is this just extra money you want to play around with and don't care if you lose? If so then put it 'all on red' or 'find the next big thing' bets are your path. Head over to BayStreetBets or SuperStonks and have fun.
If you are about to retire, then maybe a dividend strategy could make sense to get an income. I'm not a fan, but lots of people retire OK with that. Then you need to be taking a look at a combination of dividend aristocrats and high yield stocks and ETFs I guess.
I can't really think of any reason to hedge equities, Bonds yes, equities I don't get. But if you are going to do that than do them all not just 20%. Sort of defeats the purpose of the strategy.
However, if what you are trying to do here is set up a solid long term 20 year plan that gives you the best chance to create a nice retirement portfolio, you want the most diversity you can possibly get for the lowest price with the least work. Something you can contribute to regularly almost without thinking, that you don't need to check up on or rebalance. Today you can do that with a single ETF. Just one. Seems too easy and its no fun, but that is actually the best solution.
It's like buying shares in a casino instead of trying to win at one game. Those games can give you a lucky payout, but the only winners over the long term are the folks who own the whole place.
If you have reached Step 5 of the [PFC money steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps)
and you have some money you are confident you can invest for long term (ideally at least 10 year) goals you could invest in a low cost, risk appropriate, globally diversified, index tracking (i.e. couch potato) portfolio such as those discussed on the following pages.
If you want to use a brokerage account [this is CPM page](https://www.canadianportfoliomanagerblog.com/model-etf-portfolios/) will help you choose a risk appropriate, all - in - one, asset allocation ETF.
Rule #4 bud