Initial Value $20,002.30
March 26, 2012
Update Value $33,670.12
October 15, 2018
By Gordon Pape
It’s great to have an all-stock portfolio when markets are booming. It’s not so much fun when shares plummet in value, as they did last week.
I started the IWB Aggressive TFSA Portfolio in March 2012. I stressed at the time, and since, that it is only suitable for readers who want to maximize capital gains in a Tax-Free Savings Account through 100% exposure to domestic and international stocks. That means you should only invest in it if you are willing to accept a higher degree of risk and volatility.
This month has been a testing time for portfolios like this. But let’s see how it has done over the longer term, since our last review in March.
Despite the sell-off we eked out a fractional gain of 0.3% in the latest period. There’s nothing exciting about that except that even with the market stumble we didn’t lose any ground. Of course, if the downtrend should continue this portfolio would be exposed to heavy losses.
Since inception, the portfolio has gained 68.3%, which works out to a compound annual rate of return of 8.34%.
We will invest $243.30 to buy 10 additional units of XIC, to take advantage of the price weakness. That will give us 240 units and reduce the retained income to $35.07.
We’ll also buy another 10 units of XSP for $308.40, for a new total of 220. That will use all the retained earnings in the account. We will take the balance of $18.93 from cash, leaving $2.47.
We have $546.92 in cash and retained earnings, which we will continue to keep in our EQ Bank account at 2.3%.
Here’s a look at the securities in the portfolio with some comments on how they have fared since then. Results are as of the close of trading on Oct. 11.
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