I think we can safely say we are now almost four years into the most disrespected bull market in history, to borrow a phrase from Alexander Green. In a recent roundtable in The Wall Street Journal, the moderator opened the discussion by saying, “It’s been another very difficult year for investors.” Um, really? U.S. stocks were up over 16% in 2012, and international equities did even better. If that’s a difficult year, I can’t wait for an easy one.
Indeed, last year was much kinder to investors than 2011, when the Complete Couch Potato returned just 2.36% and most of my other model portfolios did worse. In 2012, all of the model portfolios delivered remarkably similar performance, with returns between 8% and 9%.
The data below were gathered from fund websites whenever available: otherwise I used Morningstar. Returns for US-listed funds are expressed in Canadian dollars. Consider these unofficial results: when I have all the necessary data I will update the long-term Couch Potato performance report card. [Note: The updated report card is now available .]
| Global Couch Potato (Option 1) | |
| iShares S&P/TSX Capped Composite (XIC) | 6.9% |
| iShares MSCI World (XWD) | 13.5% |
| iShares DEX Universe Bond (XBB) | 3.3% |
| 8.1% | |
| Global Couch Potato (Option 2) | |
| TD Canadian Index – e (TDB900) | 6.9% |
| TD US Index – e (TDB902) | 12.6% |
| TD International Index – e (TDB911) | 15.5% |
| TD Canadian Bond Index – e (TDB909) | 3.1% |
| 8.2% | |
| Global Couch Potato (Option 3) | |
| RBC Canadian Index (RBF556) | 6.4% |
| RBC US Index (RBF557) | 11.8% |
| RBC International Index (RBF559) | 16.4% |
| TD Canadian Bond Index – I (TDB966) | 2.8% |
| 8.0% | |
| Complete Couch Potato | |
| iShares S&P/TSX Capped Composite (XIC) | 6.9% |
| Vanguard Total Stock Market (VTI) | 13.4% |
| Vanguard Total International Stock (VXUS) | 15.2% |
| BMO Equal Weight REITs (ZRE) | 18.1% |
| iShares DEX Real Return Bond (XRB) | 2.4% |
| iShares DEX Universe Bond (XBB) | 3.3% |
| 8.7% | |
| Yield-Hungry Couch Potato | |
| iShares S&P/TSX Cdn Div Aristocrats (CDZ) | 9.0% |
| iShares DJ Canada Select Dividend (XDV) | 8.8% |
| iShares Global Monthly Adv Dividend (CYH) | 9.5% |
| BMO Equal Weight REITs (ZRE) | 18.1% |
| iShares S&P/TSX Preferred Stock (XPF) | 11.1% |
| iShares DEX HYBrid Bond (XHB) | 8.7% |
| iShares Advantaged US High-Yield Bond (CHB) | 13.0% |
| iShares Advantaged Canadian Bond (CAB) | 3.0% |
| 8.5% | |
| Über-Tuber | |
| iShares Canadian Fundamental (CRQ) | 9.8% |
| iShares S&P/TSX SmallCap (XCS) | -2.6% |
| Vanguard Total Stock Market (VTI) | 13.4% |
| Vanguard Small Cap Value (VBR) | 15.7% |
| iShares MSCI EAFE Value (EFV) | 14.5% |
| iShares MSCI EAFE Small Cap (SCZ) | 16.8% |
| Vanguard Emerging Markets (VWO) | 15.8% |
| SPDR Dow Jones Global Real Estate (RWO) | 21.9% |
| BMO Mid Federal Bond (ZFM) | 2.8% |
| BMO Short Corporate Bond (ZCS) | 3.6% |
| 9.0% | |