RM Portfolios Update: October 2017

Each month I share the monthly performance of the Balanced 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 balanced portfolio.

This Month's Update

The Canadian dollar declined slightly in October. Since none of our holdings are currency-hedged, performance actually got a bit of a boost in our currency.

Underlying markets have also done amazing well this past month, so October was very kind to disciplined investors!

RM Balanced Portfolio

This month the Balanced Portfolio made a nice gain thanks to our growth allocation. Stay balanced with your new contributions and happy investing!

This is the monthly change of our four ETFs as of November 1.

  • XAW.TO up from $23.68 to $24.83  (+4.85%)
  • HXT.TO up from $32.02 to $32.84  (+2.56%)
  • HBB.TO up from $43.86 to $44.56  (+1.59%)
  • XGD.TO down from $12.31 to $12.14  (-1.38%)

Our overall portfolio was up (+3.44%) this month. To remain balanced you should be purchasing HBB.TO and XGD.TO with your new contributions.

Dual Momentum Strategy (RM Style)

Last month's recommendation XEF.TO went up 4.63% 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.

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