Two Tools

to Help You Manage Risk & Volatility

Asset Allocation, Diversification and You

In the context of long-term investing, given that you have 10, 20 or more years to invest, TheAnswerIs supports an initial allocation of all or mostly all of your assets into equities, increasing your allocation to fixed income when you are five years away from the time when you will need to draw on your investments.

With respect to an ETF-only portfolio, it is possible to obtain global diversification and industry sector diversification with a low cost portfolio of six ETFs. supports you having a stock portfolio that has industry weightings that are different than the TSX industry weightings. It also means that your portfolio may outperform or underperform the TSX.

More specifically, TheAnswerIs supports diversifying a portfolio with industry weightings in Consumer, Finance, Utilities, Real Estate, Manufacturing, and Resources, (i.e., energy and raw materials) that is more balanced than the Toronto Stock Exchange index.