# Couch Potato Model Portfolios for 2015



## larry81 (Nov 22, 2010)

*Canadian Couch Potato Model Portfolios for 2015*

Our good friend CCP just posted his updated models portfolios:

http://canadiancouchpotato.com/2015/01/15/couch-potato-model-portfolios-for-2015/
http://canadiancouchpotato.com/model-portfolios-2/

The ETF portfolio is now a simple 3 funds portfolio ! While i understand that extreme simplicity is a preferable option for the general public i personally like my dose of hairsplitting !

Wonder what he will post about now that he recommend a 3-funds portfolio ! Really Hope he will keep posting good content and that this paradigm shift will not impact his blog pageview's !

Justin Bender still recommend portfolio's with the usual ETF mixes:
http://www.canadianportfoliomanagerblog.com/model-etf-portfolios/

I will personally continue to use the same strategy (5 ETF's spread over all my accounts, including REIT !)

Please discuss


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## JordoR (Aug 20, 2013)

Excellent thanks, I was waiting for this update.

Just recently I was debating between going with Tangerine Balanced Growth vs TD E-series mix. I was a bit on the fence about having to re-balance yearly, and make multiple purchases when my monthly contribution comes in - but it was hard to argue seeing a 0.42% MER vs a 1.07% MER. On a yearly basis it doesn't seem like much, but I was amazed to see the difference compounded, on a 5, 10, or 25 year timeline for investing. And really... purchasing the (4) funds monthly takes under 5 mins, and balancing yearly doesn't take long either.


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## Ihatetaxes (May 5, 2010)

Looks good and nice chart to make it simple for folks trying to choose a risk level. I have made some changes recently, selling all VWO, VEA and DEM in favour of XEF. I used the US funds from selling those to increase my VTI holdings up to 2015 target % and then bought XEF using CDN funds. Eliminated REIT ETF in 2014 due to substantial real estate holdings already (residential and commercial) outside my investment portfolio. Down from 6 ETFS to 4 and only one big US holding and the rest in CDN $$. Only downside is less exposure to emerging markets but with over 1,700 stocks, XEF does hold large, mid and small caps.

25% XIC
25% VTI
25% XEF
25% GIC ladder and XSB


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## Barwelle (Feb 23, 2011)

It's nice that he's now included a range of different allocations for each portfolio depending on how aggressive you want to be.


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## My Own Advisor (Sep 24, 2012)

Agreed Barwelle.

Also, although these are "model portfolio", nothing says you can't have alternatives. e.g., XIC vs. VCN, a combo. of VTI and VXUS in RRSP vs. VXC.


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## uptoolate (Oct 9, 2011)

I get the idea of simplicity being important but if one isn't intimidated by Norbert's gambit I think holding VTI at 0.05 and VXUS at 0.14 is a bit better than VXC at 0.28. It's much better to hold VTI/VXUS in an RRSP if the effective drag on VXC is going to be 0.75% due to withholding taxes. It is good to see CCP giving some guidance on asset allocation based on risk tolerance.


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## juniperpansy (Jan 5, 2013)

I like the change. Couch Potato is supposed to be simple. A lot of the things Dan posted recently have been overly complex and don't fit with keeping things simple. 

I do wish there was an advanced section of the website though, that kept the more complex articles


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## larry81 (Nov 22, 2010)

Another drawback of a 3 funds portfolio is that you have less opportunity for tax loss harvesting in non-registered account. By consolidating US and Intl in a single holding, any disconnect between the two asset classes would not show up to the investor.


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## larry81 (Nov 22, 2010)

CCP just posted:


> I will continue to write about specific funds, strategies and situations that go well beyond these simple portfolios. That has always been the case, so nothing has changed in that respect. There is plenty of information elsewhere on the blog about how to effectively use US-listed ETFs, GICs instead of bonds, asset location to minimize taxes, etc. The model portfolios have always been intended as a starting point, nothing more.


Great news for anyone interested in learning how to trim 0.0005% of their tax/MER/whatever


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## My Own Advisor (Sep 24, 2012)

LOL. You have a point larry81. Do a few things really, really well and forget the small stuff.


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## mrPPincer (Nov 21, 2011)

..wait, but what if the small stuff is the only thing you do really really well? :smilet-digitalpoint


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## larry81 (Nov 22, 2010)

IMHO the "best" ETF's portfolio is currently:

- Can: VCN or XIC
- US: VTI or VUN
- Intl: VXUS or XEF/XEC
- Bonds: VAB
- REIT: ZRE (Optionnal)

For the equities allocation, VCN/VTI/VXUS should be equally split.
Add the usual additional tweaks for non-registered/registered accounts allocation.
Voila !

Thats it !


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## uptoolate (Oct 9, 2011)

+1

We have a winner.


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## bumblebee (Jan 15, 2015)

I use *XEF*/XEC for the Int'l Eq's.


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## larry81 (Nov 22, 2010)

bumblebee said:


> I use *XEF*/XEC for the Int'l Eq's.


Typo, fixed


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