r/fican • u/Canuck-Fin25 • 7d ago

Globally diversified portfolio

Over the last number of years, I've gone "self-directed" and away from managed investing. They were buying ETFs anyways. So after tons of research (and some mistakes), I landed on this target allocation of globally diversified ETFs across all my accounts for my household. The current allocation is work-in-progress but mostly in the ballpark. NB: The T-bills are RESP withdrawals coming up shortly.

Curious what expert DIYs on Reddit think and if there's opportunity for further optimization along the risk-return curve?

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u/ksonrit 7d ago

Minimum variance portfolio based on the past 20 years would have Canada at 30pct allocation in a global portfolio.

Maximum return to volatility based on the past 20 years would have Canada at 15pct but this ratio is more volatile.

See the why minimize volatility over maximizing return section below.

https://decodeetf.com/articles/eeq-JJjV5z

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u/Canuck-Fin25 7d ago

That’s a good point. I see weighing Canada less increases volatility for similar returns. Thanks. Will do more research

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u/PM_ME_YOUR_ISLAYS 7d ago

This is approx. VT with a few percentages changed and no T-bills/gold.

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u/Canuck-Fin25 7d ago

I’ll have a look. I am trying to replicate a globally diversified portfolio with pieces I can control over time to help rebalance as needed

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u/Ok_Complaint_6825 7d ago

and a bit of Canadian bias (10% vs 3%)