I’m really not sure if anyone in government knows exactly what they are doing, but following these guidelines can help you to invest like the Canadian Government.
Another option, if you really didn’t like my retirement income portfolio, is to invest like the Canadian Pension Plan (CPP).
The Canada Pension Plan has recorded nearly a 10% annual rate of return over the past several years.
Here is how the Pension plan portfolio breaks down and how you can invest just like the government using simple ETF’s!
CPP weighting: 25.1 per cent
ETF: iShares Cdn Composite Index Fund
CPP weighting: 35.3 per cent
ETF: iShares MSCI EAFE Index Fund.
CPP weighting: 22.6 per cent
ETF: iShares Cdn Bond Index Fund
CPP weighting: 3.5 per cent
ETF: iShares Cdn Real Return Bond Index Fund
CPP weighting: 6.4 per cent
ETF: PowerShares Listed Private Equity Portfolio
CPP weighting: 4.5 per cent
ETFs: SPDR DJ Wilshire International Real Estate ETF and DJ Wilshire REIT ETF (For United States Exposure)
CPP weighting: 1.9 per cent
ETF: SPDR FTSE/Macquarie Global Infrastructure 100 ETF
CPP weighting: 0.7 per cent
ETF:Use a money market fund with a low MER.
This sample portfolio simplifies the procedure of investing like the Canada Pension Plan.Â All in all it is a relatively conservative portfolio that has a fairly sound track record.
Percentages Via: Globe and Mail