XEQT and Chill

[@Andrew21882]

I think XEQT is a great option for someone in an accumulation phase years away from a retirement. It’s well diversified across the globe and sectors, automatically rebalanced and low cost. Being retired for over 3 years my portfolio consists of XEQT 60% and XQB 40%. I played with individual ETFs and stocks before but find this combination the best so far. Every month I sell for income from whichever does better. I realize this strategy is not optimal but probably good enough for most people. Your thoughts, thank you.

[@DividendGuy]

I like your strategy as it's simple and clear (therefore, easy to stick to it!). You could simplify it one more notch by looking at XBAL.TO which is like XEQT, but with 40% bonds (including XBB instead of XQB).

[@alanvonweltin6820]

For retired folks, I think this strategy is fine provided you have enough savings set aside to get through an extended bear market (2-3 years) without needing to sell for income. If you have the reserves AND the emotional control/ability to not panic sell during the rough times you will likely do fine with this approach.

[@Andrew21882]

@@DividendGuy I looked at XBAL and prefer my strategy though, because in a real market downturn like in March 2020 for example it would be better to sell from a bond ETF rather than from the whole thing XBAL in this case minimizing loses that way.

[@Andrew21882]

@@alanvonweltin6820 I would be a good idea to allocate let’s say about 3 years worth of one’s income withdrawals in a short term bond ETF or high interest ETF/money market for example.

[@Andrew21882]

@@DividendGuy I looked into XBAL but I prefer a split, because in a fast and large market downturn like in March 2020 you can sell from a bond ETF and do some rebalancing minimizing losses that way.

[@djee02]

I like to blend XEQT and XAW to lower the canadian exposure.

[@DividendGuy]

That makes sense if you want a larger exposure to other countries :-)

[@chridenner7806]

Thank you, never heard of this ETF. I will hopefully retire early next year - I built a very cash-flow-based portfolio of mainly dividend ETFs and dividend stocks. But this ETF here might be a good addition to the growth section of my portfolio.

[@DividendGuy]

If you buy XEQT, you get 9,000 stocks. If you add more ETFs, you are just adding more of what you already have but you won’t know which one.

[@brent6518]

Great informative video Mike..thank you!

[@DividendGuy]

Glad it was helpful!

[@janetgoss4199]

Oh I just added a secon ETF to my portfolio a few hours before watching this. I should have gone to you first lol

[@maggie-gardenhappiness8608]

Thanks for the explanation

[@DividendGuy]

You're welcome

[@johnnyblazo]

I XEQT and chill. Big fan and have been holding for years.

[@DividendGuy]

Great to see you have the conviction :-) That's what works!

[@JohnHobbs-o3z]

Right,less is better,for the average invester

[@ratagusc7867]

Thanks for the video

[@DividendGuy]

You bet

[@Dor_alien]

Nice one, I have the majority of my TFSA in XEQT currently while I learn more about single stock analysis and how to invest in general. One day I'd like to earn income solely from dividends, but for this I think would I have to sell off my XEQT shares and buy certain dividend paying stocks individually instead?

[@Nurseinator]

is this ETF TFSA safe?

[@DividendGuy]

What’s TFSA safe?

[@jvouzan]

how about VFV?

[@DividendGuy]

Great option it you want to track the s&p 500!

[@davec.6293]

Blackrock will vote upon your shares, and you will be happy.

[@SSMLivingPictures]

Great vid, thanks!

[@DividendGuy]

Glad you liked it!

[@RonBoychuk]

What a crock ! Can't hold a candle to QQQ

[@DividendGuy]

All you want in your portfolio is tech stocks?

[@RonBoychuk]

Absolutely not I'm merely responding to your haywire assertion around one holding that you suggest is a universal solution After being in this game for three decades, it appears to me you're proposing a simplistic solution to a complex problem , feeding garbage to the ill informed

[@DividendGuy]

@@RonBoychuk If you had spent 2 seconds on my channel, you would have realized that I'm a dividend growth investor and that XEQT deserved a complete review. I never said it was a perfect solution or the only solution. The only thing you suggested that was better than XEQT was a tech ETF (based on what? We still wonder since you didn't care to explain). If you know better, you should explain your solution and educate people instead of feeding such comments that bring us nowhere. You're not even describing why XEQT is garbage. Please elaborate in your comment if you really want to help investors.

[@TonyMontanaDS]

I used to buy it but then decided to switch to high yield dividend ETFs and retire early. I didn't feel like working until 65. Yes, I could probably make more with XEQT at age 65 but I would rather make a bit less and do whatever I want now.

[@DividendGuy]

But what if the high yield doesn’t increase it’s distribution?

[@TonyMontanaDS]

@@DividendGuy House is paid and we don't have any debt. The goal is to get to 6k a month so we can keep re-investing at least half of the dividends every month. The yield doesn't need to increase. The number of shares will increase on a monthly basis. If one ETF starts underperforming, sell, and buy a different one.

[@nickc5341]

​@TonyMontanaDS im doing the same strategy. Investing in high dividend cc etfs. I'm 43 now so I'm hoping by age 60-65 to be making at least 4k take home from just dividends to supplement my CPP and OAS.

[@TonyMontanaDS]

@@nickc5341 Turn on the drip and let it re-invest and compound until you are ready to retire. The compounding alone will make a huge difference.

[@brent6518]

@@TonyMontanaDS which high yield ETFs are you position in?

[@dkyrtata6688]

As your graph illustrates (3:00), XEQT does not keep up with the S&P 500. So, why not just buy an S&P 500 fund instead? Or better still, why not buy an ETF that outperforms the S&P500, like BMO's ZUQ? Or for more global exposure ZGQ?. Or how about a leveraged version of the S&P 500, USSL from GlobalX? From where I stand, there is no compelling reason to own 9000 global companies that can't keep up with the 500 largest companies in the U.S. In this case, over-diversification comes at a cost.

[@tbprofile1295]

I agree. I would prefer more US exposure.

[@Andrew21882]

In the decade 2000-2010 S&P500 was basically flat no return for 10 years. In that period TSX60 crushed S&P500, even Canadian universal bond index XBB delivered annualized return about 6%. That tells us the proper portfolio diversification is crucial and in a long run XEQT will win and also with a lower volatility than S&P500.

[@DividendGuy]

You are right, the S&P 500 is the index that outperformed the other over the past 5 and 10 years. But you are looking at the past. Were you comfortable investing 100% of your equity portion in the S&P 500 during the 2008 financial crisis for example? If you only want exposure to the S&P 500, then yes, you are better off with an ETF that does that. But nothing guarantee you that the S&P 500 will be the index that outperform everything in the next 10, 20 or 30 years. Maybe it will, maybe it won't, we will only know in 10, 20, 30 years :-).

[@dkyrtata6688]

​ @DividendGuy, Though I like ZUQ more, I am completely comfortable investing in the S&P500. That in itself is diversification. If that goes down, everything around the world will go with it. There was nowhere to hide during the financial crises unless you pulled out of the market altogether. Not a smart thing to do knowing that the markets have recovered 100% of the time.

[@Andrew21882]

@@dkyrtata6688 Look at the decade 2000-2010 and compare total returns of SPY, XIU and XBB and you have the answer to the importance of diversification.

[@FI-Beauce]

Could be also FEQT if you want some crypto exposur

[@DividendGuy]

indeed, thx for the addition :-) There are so many ETFs!

[@ryanm7171]

I think I will be making your mistake intentionally. I have no XEQT now as I enjoy buying and holding Canadian dividend paying companies, especially because they are so tax advantaged. However, I am in my 50s, but as I age, I have every intention to slowly switch from stocks to index ETFs to simplify my life. I worry about my potential cognitive decline, and I don't want to be a burden to the future estate trustees my will.

[@DividendGuy]

Hello Ryan, I don't think that switching from stocks to ETFs would be a mistake in this situation. I can see this move making lots of sense if you lost the interest (or the capacity) to monitor your stocks and manage a portfolio as you age (you are still young now haha!).

[@tbprofile1295]

What about the capital gains tax when you sell the stocks? I'm in a similar situation in terms of age and investments.

[@ryanm7171]

@tbprofile1295 Great question, something I really have to plan for. My stock portfolio today is so much different than it was when I started almost 20 years ago, so I figure things will change, and I can slowly transition to index ETFs in the next 20 years. It's not the end of the world if I end up with a few big winners that I just decide to hold on to. I also plan to be a little philanthropic and donate some securities with very high capital gains as well. I will definitely have to consult a financial planner and make some serious changes to my portfolio in my early 60s to ensure the numbers work.

[@SunnyUBC]

Link for the dividend income for life webinar pls Mike?

[@DividendGuy]

First link in the comment. 😄

[@SSMLivingPictures]

9000 stocks ?!?!?! Thats a bit....much hahaha. Thats like having a chip on every spot on a roulette table IMO Edit: 21,000 !!!!!! Ok, that made me gasp LOL

[@nickstark8479]

Nothing wrong with putting a chip on every spot if the payout is in your favor - which in casinos it is not, but it is in the stock market as long as you let it ride for the long term.

[@SSMLivingPictures]

@@nickstark8479 Yup for sure. Not my personal style but for the right person its a great solution

[@DividendGuy]

If you want to be diversified and not to worry about anything, it's a good solution :-)

[@adamyahya4638]

@@nickstark8479 It's that old saying. Time in the market, not timing the market. It's not glamorous, slow but eventually, it'll pay off.

[@airhead3333]

No it’s not like roulette at all lmao

[@JoelWeiss-g1m]

Not a fan of this ETF- too many positions. I like to know what I own. I already own SCHD, QQQ and SCHG and am considering selling them because that's over 400 companies and I can get better performance owning single position equities