The Wealthsimple Conservative portfolio is our low risk portfolio. In other words, we built this portfolio with the goal of limiting short term fluctuations while still trying to generate returns that can modestly outpace the rate of inflation. The Conservative portfolio would have declined by only about 10% in the 2008 downturn.
Our conservative portfolio has 35% exposure to equities and 65% exposure to fixed income or bonds. It is invested in the following funds:
|Vanguard Total Stock Market||VTI||3,800 large, medium, small and micro-cap companies mirroring the US equity market||5%|
|iShares MSCI Min Vol Global ETF||ACWV||Large, mid, and small-cap stocks in developed Europe, Australasia, and the Far East||10%|
|iShares MSCI Min Vol Emerging Market Fund||EEMV||Exposure to 300+ emerging market equities with minimum volatility characteristics||10%|
|iShares Core MSCI EAFE CAD||XEF||Large, mid, and small-cap stocks in developed Europe, Australasia, and the Far East in Canadian dollars||7.5%|
|Shares Core S&P/TSX Capped Composite Index||XIC||250+ Canadian equities representing 95% of the Canadian equity market||2.5%|
BMO Discount Bond Fund ETF
|ZDB||Exposure to a mix of Federal, Provincial, and corporate Canadian debt with maturity >1 year but a lower weighted average coupon. This reduces tax implications in non-reg accounts||35%|
|Mackenzie US TIPS Index ETF||QTIP||Exposure to inflation-protected US government bonds||10%|
|BMO Long Federal Bond Index||ZFL||Long term debt securities issued or guaranteed by the Government of Canada||20%|
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's fairly short-term (3-5 years) and are only comfortable with small fluctuations in your account.
- If you're retired and are only comfortable with small fluctuations in your account.
- If fluctuations in your account make you very nervous but you're okay with a low level of fluctuations to try to grow the funds by more than what a savings account can generate.
If you feel like one of your accounts should be in the Conservative portfolio but isn't at the moment, you can submit a request to change it by clicking on the account you want to change and using the settings on the left-hand side.