04-24-2015, 11:17 AM
As a follow up, I looked at his final recommendation of buying the S&P/TSX 60 Index Fund (XIU) and compared my holdings.
- XIU has 62 holdings
- I own 16 of the 62
- Of the remaining 46 stocks I would never wish to own 24. Of the 22 many have yields below 1% and do not have a consistent dividend growth history.
- The same 16 stocks in XIU make up 41.4% of their total
- The 16 make up 71.1% of my total
- Their distribution is about 0.51 cents per share on 62 stocks
- My dividends are about 0.60 cents per share
- Their distributions dropped from 2013, 0.58 cents to 2014, 0.56 cents (probably buying and selling stocks)
- My dividends for those stocks increased from 2013 to 2014
- XIU charges a 0.35% annual fee
- I have no annual fee
- The difference in the Distribution and annual fee would cost $6500 per year.
Would I be better with XIU, paying them $6500 per year to get some diversification? I think not!
- XIU has 62 holdings
- I own 16 of the 62
- Of the remaining 46 stocks I would never wish to own 24. Of the 22 many have yields below 1% and do not have a consistent dividend growth history.
- The same 16 stocks in XIU make up 41.4% of their total
- The 16 make up 71.1% of my total
- Their distribution is about 0.51 cents per share on 62 stocks
- My dividends are about 0.60 cents per share
- Their distributions dropped from 2013, 0.58 cents to 2014, 0.56 cents (probably buying and selling stocks)
- My dividends for those stocks increased from 2013 to 2014
- XIU charges a 0.35% annual fee
- I have no annual fee
- The difference in the Distribution and annual fee would cost $6500 per year.
Would I be better with XIU, paying them $6500 per year to get some diversification? I think not!