…. continued from Tuesday. Click here for Part 2 (a)) …

By Aman Raina, Sage Investors

Special to the Financial Independence Hub

CANADIAN STOCKS (PORTFOLIO WEIGHTING 10%)

ROBO Goal: Ownership share in companies based in Canada. Often over-represented in Canadians’ portfolios, but a major part of long-term returns.

ETF Used: iShares Capped Composite TSX Index (XIC) MER 0.05%

The investment seeks to replicate the performance, net of expenses, of the S&P/TSX Capped Composite Index. The index is comprised of the largest (by market capitalization) and most liquid securities listed on the TSX, selected by S&P using its industrial classifications and guidelines for evaluating issuer capitalization, liquidity and fundamentals.

Another go-to vanilla ETF, XIC,  provides exposure to the S&P/TSX Composite, which skews heavily into Canadian financials and commodity stocks. One bad habit Canadians investors get into succumbing to home country bias —  holding way more Canadian companies than foreign companies. The Canadian stock market represents only 6 per cent of the global market so it is positive to see ROBO allocating a  smaller weighting to Canadian stocks. It’s sad to say that in terms of investing opportunities, there are way way more of them outside Canada.

RISK-MANAGED STOCKS (PORTFOLIO WEIGHTING 10%) Continue Reading…