Hey investors I made another addition to my portfolio. When I wrote My Financial Goals For 2020 I stated I wanted to add some diversification to my portfolio because at the beginning of the year 66% of my portfolio was invested in the Canadian market. The Canadian stock market only makes up 4% of the world’s market so it’s important to diversify. On Monday January 20th I added the iShares Core MSCI All Country ex Canada Index ETF (ticker: XAW) to my portfolio making it the second ETF I hold.
XAW gives investors access to stocks all over the world in fact the six ETFs that are inside of XAW hold a combined 10,238 companies giving me instant diversification.
- United States 57.21%
- Asia 17.79%
- Europe 14.46%
I do hold some individual US stocks but with this new holding I now have access to Amazon, Alphabet and many other high growth stocks. Also I now have more access to Asia which I definitely need.
XAW pays a semi-annual distribution from it’s recent history the payments are in June and December. The distribution varies as you can see from payment to payment.
On January 20th I purchased one share (that’s right one share) of XAW for $28.78 per share. The one share is not a typo. By looking at the last two distributions this one share should get me around $0.55 in income.
To purchase this ETF I opened a new RRSP account with a new trading platform, I decided to try out Wealthsimple Trade. I did this because Weathsimple Trade is offering zero fees and commissions so I can buy and sell for nothing. If I stayed at RBC where I do my main investors each trade would cost me $10. I know Questrade offers free ETF purchases but I heard you need a $1,000 account minimum so that is another reason I chose Wealthsimple.
So my plan is to invest at least $100 per month into this account. I won’t get rich or diversified quickly with this approach but over time it will start to add up. By looking at the share price and the amount I plan on investing per month, it’s looking like I will be able to purchase 3 shares per month. Since these will be small purchases I won’t write a post for each buy I will just add what I buy on my monthly dividend income posts.
Thanks for reading everyone! Do you own XAW or thinking about it?