Monday 13 October 2014

$192,000 ETF Report Update

As some of you know I have constructed a $192,000 ETF portfolio for my mother in law Grandma Olga. Original Link HERE

Here is a dividend report since original inception of June 25

A recap of the particulars

The Allocation: 

Fixed Income: 46%

  • Bonds 34% : Investment grade corporate 1-5 year laddered Fund
  • Preferred Shares 12% : Canada and American high quality holdings Fund

Equity Income 54%
  • Reits 12% : Canadian Income Real Estate Investment Trusts Fund
  • Canada 12.5% : High dividend paying stock fund
  • American 12.5% : High dividend paying stock fund
  • Covered Calls 7.5% : Covered calls of select North American stock fund
  • World 12% : High yielding mainly Europe/Asia Fund
    Total portfolio original value $192,000

Now the list of the individual funds!


  • CBO - iShares 1-5 year laddered corporate bond.            .28% Mer     4.18% Yield
  • ZCS - BMO Short Corp Bond Index                                .34% Mer     3.16% Yield

Preferred Shares
  • XPF - iShares Preferred Stock North America                  .47% Mer      5.21% Yield
  • XRE - iShares S/P TSX Cap Reit                                       .60% Mer      4.96% Yield

Canada Equity
  • XEI - iShares Equity Income                                               .61% Mer      4.21% Yield
  • ZWU - BMO Covered Call Utilities                                   .71% Mer      5.60% Yield
  • ZWB - BMO Covered Call Financials                                .74% Mer      4.80% Yield

America and World Equites
  • ZWH - BMO US High Div Covered Calls                           .65% Mer     6.07% Yield
  • XHD - iShares US High Div Index                                      .33% Mer     2.62% Yield
  • CYH - iShares Global Monthly Dividend Index                  .34% Mer     3.59% Yield
  • VEF - Vanguard Developed excluding NA                          .34% Mer     3.50% Yield

This selected portfolio is currently yielding 4.11% 
or about $7,891 a year or $657 a month average

Now an update of the payouts and thoughts

July               $451.96
August          $610.00
September     $610.00
October         $217.12

They are a little bit lower than I had anticipated. All but one of the funds are monthly payers so $610 will be the lowest total going forward I would hope which depends on payouts remaining the same.

Revised forward dividends are $7500 for the year or $625 a month (3.9% yield)

And now even more bad news

The portfolio holdings of $192,000 is down 2.16% to $187,849 due to markets taking a severe dip.

In Conclusion

Not the best update with lower than anticipated payout and the portfolio taking a hit but it could be worse. No panic here as its is a long term hold. Nobody can time the markets efficiently and history shows always better to be in than out. We will stand not making any moves until possibly next year where we will analyze a couple things. We will more than likely switch from the reit fund etf into individual reit holdings if the Mers do not go down on that fund. 4% yield is what I am after and will adjust accordingly to make it happen.

Other News

Markets taking a good sized dip wiping out my gains. Net worth report coming in a few days and its looking pretty red!!!! Ouchy!!!


  1. A 2.16% dip for Grandma Olga is not too bad, considering over half her income is invested in equities. The Canadian S&P/TSX Composite index is down 8% from this time last month so thankfully she didn't lose more. My portfolio by comparison has done worse because I'm less diversified than your MIL. September wasn't too bad, but so far in October my net worth has dropped by about $10K haha. That's probably nothing compared to your paper losses though. Looking forward to your net worth update soon :D

  2. Yes the bonds in the account soften the blow. Lookin easy over 10k loss for me this month. Maybe 20. Too scared to crunch the numbers so far lol :(

  3. Thanks for the update AG. Even if Grandma's portfolio has dropped a few grand, she's better off with this arrangement than some "wealth manager". I was thinking about your REIT margin trade, given the recent market selloff. You must be pretty happy that REITs are holding up as well as they are. Investors searching for yield have kept a nice bid under most of the sector!

    1. yah things are gonna get a lil wacky lately. Investors wanna park there money somewhere. Consumer staples seem like a good place as a defensive stock as well. A high yield makes weathering a storm much easier as well. Getting paid to wait lol

  4. I did a lot of buying the last half hour today. Have been taken my dividends since June and had a pretty good pile of cash to deploy.

    1. Yah was a monster sell off last hour of trading. Had to do a double take on the charts . Very volatile markets recently

  5. The ebbs and flows of a portfolio value matter not for the long term. The yield you are achieving is really not bad considering other fixed income products out there. You have some pretty nice diversity and a pretty decent average monthly income. All things considered you are on par or better than many money managers out there who will do what you are doing for a fee.

    1. That was my goal. Very diversified portfolio thats able to take hits and keep on chugging. I am not really a bond guy but they are looking attractive these days as a safer choice.

  6. A tiny bump considering the long term effect of a ETFs. You should remind Grandma Olga that this is why you made sure that some of the portfolio was invested in bonds. People forget that stocks go down too and bonds provide the inertia that stocks cannot offer.


    1. Yah she is fine with the bumps so far and she really likes the consistent income that is coming in compared to it just sitting in the bank.

      We just had a Canadian thanksgiving and she expressed her gratitude again to me for watching out for her which is always nice to hear. She has a couple friends that would like to talk to me about investing but I am a tad apprehensive. I am no professional and I dont like to charge people for my help either so it puts me in a quandary lol. I prob just point them in the right direction and let them decide how they want to approach things.

      Thanks for dropping by everyone and the comments. I haven't been super active lately and I want to get back on track and visit everyones site. I appreciate the blogger community for giving support to all the fellow bloggers and I am grateful for it.

  7. Hey AG,
    That's not bad at all. Those dividends are pretty good for a portfolio under 200k. Being down only 2% is also not that bad when you look at the market as a whole. On the plus side those dividends will keep coming in as usable income which I am sure Grandma Olga appreciates. Keep it up and I look forward to your networth post.

    1. Yes networth will be up in a couple days of pure redness! yah 2% is not too shabby, could be much worse with 100% equity

  8. Great performance. The bond holdings definitely softened the market dip.

    1. Will be interesting to see how the impending rising interest rates will fare on the bonds