Friday, May 31, 2019

Case study: My portfolio idea - VFV, VDU, VAB (series 3 of 10)

May 31, 2019

Introduction


It is my portfolio idea just to borrow from the article Canada retirement guide using three ETF (VFU, VDU, VAB). The blog is related to developed market vs emerging market. 


Case study



Developed Market vs Emerging Market

Our portfolio invests in developed market stocks because their returns are significantly higher and more stable than emerging market stocks. The table below compares the historical performance of those two stock indexes. Together they cover the entire global stock market.

FTSE Developed All Cap Index = developed market stocks
FTSE Emerging All Cap Index = emerging market stocks
Historical Returns
1 Year
5 Year
10 Year
FTSE Developed All Cap Index
–1.5%    
9.8%    
10.8%    
FTSE Emerging All Cap Index
–7.1%    
6.6%    
8.8%    


(annualized returns as of December 31, 2018)
Note: All returns are in Canadian dollars.
Sources: FTSE Russell index fact sheets.


Actionable Items


Please take some time to read FTSE Russell index fact sheets. 

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