December 2016 Portfolio update : Bought these two great ETF’s XUS and ZEB
As we are nearing the end of fiscal year 2016, thought of adding these two great ETF’s to my TFSA. After spending a lot of time doing research and analysis I finally decided to go with XUS and ZEB.
Here’s my take on why I went for these two ETF’s when there is several options out there –
First of all XUS (iShares Core S&P 500 XUS ) has been a great performer for many years now.
Your 10000 CAD invested in 2013 will be worth 17000 CAD today and consider the dividend of 30 cents per unit for 2016 (so far) and 60 cents for 2015. Now thats good growth for a period of well over 3 years and the dividend too for passive income.
XUS has a trailing return of over 18% for 3 years, 9% for the past one year and 10.19% YTD.
Also the other good thing about this ETF is that its portfolio is very well diversified. It means if one of the sectors fails to perform for a specific period of time, you money invested is still balanced at the end of the day and risk involved is very less.
As I have purchased it today, will keep a track of its performance and keep you guys posted regularly.
Now, lets talk about the second ETF that I bought today and its ZEB (BMO S&P/TSX Equal Weight Banks Index ETF).
So here’s my take on why I bought ZEB (BMO S&P/TSX Equal Weight Banks Index ETF) – The first thing as the name suggests is that the portfolio of ZEB is completely (almost 99.5%) made up of bank stocks. All primary bank stocks RBC, TD, BOM etc. So losing your money here is way too less, least I can say. All of us know the importance of owning bank stocks in Canada, the stability of the bank when the economy goes down and so on. This is the single reason that made me like the ZEB.
The other important reason to consider ZEB is the dividend of 3.57% it offers. Not bad at all. First you have invested in an ETF with portfolio consisting of all major banks of Canada. Second you get a dividend of nearly 3.5% per year.
Lets talk a bit about the growth now, your 10000 cad invested in Jan 2016 would have been 13000 cad by now. Yes 3000 cad of pure profit in less than a year.
See the link below for the performance graph and more details :
Also have look at the annualized, calendar and cumulative performance percentages. Its really good and its gotta be just see the portfolio, it can never go wrong!!
What better than investing in an ETF which consists of great bank stocks. Thats it for now.
Let me know your thoughts and comments below. As I always say, lets keep investing and earn that passive income and personal freedom.