RM Portfolios Update: January 2018

Each month I share the monthly performance of the Passive Portfolio and Dual Momentum Strategy. I also share the Dual Momentum pick for the current month based on my relative and absolute momentum criteria using my favourite Canadian-listed ETFs.

I will no longer be tracking a regular Canadian Couch Potato-esque portfolios. There are two reasons for this:

  1. Pretty much every Canadian finance blog alludes to the ongoing performance of this type of strategy; while there's nothing wrong with being a Spud, at The Rich Moose Blog we intend to be different; and
  2. Thanks to some awesome new ETFs from Vanguard, there is no longer any benefit to running your own balanced strategy using multiple ETFs! (Blog post coming on this.)

If you still believe in running your own passive ETF portfolio using individual ETFs, you can learn how to design a Couch Potato portfolio by reading this post or the Canadian Couch Potato blog.

Instead, on The Rich Moose Blog, we're going to turn up the heat while protecting the downside risks! We're going to continue tracking our Dual Momentum Strategy and introduce a suite of leveraged strategies.

I'll be doing some posts on leveraged strategies this month and begin updating at the end of February.

This Month's Update

Dual Momentum Strategy (RM Style)

See our version of Dual Momentum's performance for 2017 by visiting the Portfolios page.

Last month's recommendation XEF.TO went up 2.83% for the month.

Current recommendation: XEF.TO (no change from last month)
Dual Momentum is a strict, rule-based investment system. Even after the market drop of the past week or so, XEF.TO is still up significantly in the past 12 months and up in the past 6 months.

It's important to give full credit to Gary Antonacci for this simple but effective investment strategy. Check out his site—Optimal Momentum—and read his book to learn all about this strategy before implementing it for your own portfolio.

I am confident that Dual Momentum is a great strategy that's likely to outperform a lazy portfolio strategy on a risk-adjusted basis. If you're afraid of big drawdowns, this strategy may be right for you. Every self-directed investor should give this strategy serious consideration.

When determining our monthly position, we consider the past performance of just three eligible holdings: XUU.TO, XEF.TO, VSB.TO. The best performer based on specific criteria becomes the only holding for the next month.

Comments & Questions

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RM Portfolios Update: December 2017

Each month I share the monthly performance of the Passive Portfolio and Dual Momentum Strategy. I also share the Dual Momentum pick for the current month based on my relative and absolute momentum criteria using Canadian listed ETFs.

Learn how to design your own passive portfolio.

This Month's Update

RM Passive Portfolio

This month the Growth Portfolio made a small gain. Stay balanced with your new contributions and happy investing!

This is the monthly change of our four ETFs as of January 2.

  • XAW.TO down from $24.88 to $24.87  (-0.00%)
  • HXT.TO up from $33.08 to $33.61  (+1.60%)
  • HBB.TO down from $44.85 to $44.55  (-0.06%)
  • XGD.TO up from $11.95 to $12.44  (+4.10%)

Our overall portfolio was up (+0.66%) this month. There will also be some dividend income paid by XAW.TO. To remain balanced you should be purchasing XAW.TO and HBB.TO with your new contributions. Different re-balancing intervals will produce somewhat different results.

Dual Momentum Strategy (RM Style)

The strategy is up 10.53% for 2017.

Last month's recommendation XEF.TO went down 1.07% for the month.

Current recommendation: XEF.TO (no change from last month)

It's important to give full credit to Gary Antonacci for this simple but effective investment strategy. Check out his site – Optimal Momentum – and read his book to learn all about this strategy before implementing it for your own portfolio.

I am confident that Dual Momentum is a great strategy that's likely to outperform a lazy portfolio strategy on a risk-adjusted basis. If you're afraid of big drawdowns, this strategy may be right for you. I recommend every investor give this strategy serious consideration.

We consider the past performance of just three eligible holdings: XUU.TO, XEF.TO, VSB.TO. The best performer based on specific criteria becomes the only holding for the next month.

Comments

All comments are moderated before being posted for public viewing. Please don't send in multiple comments if yours doesn't appear right away. It can take up to 24 hours before comments are posted.

Comments containing promo links or "trolling" will not be posted. Comments with profane language or those which reveal personal information will be edited by moderator.