Should You Leverage The S&P 500 In Your Portfolio

 

Recently I sat down to think of possible improvements that I can make that will enhance the performance of my Questrade retirement investment portfolio. By the way, if you’re looking to sign up to an online broker, Questrade is the one to go with. Stocktrades has an amazing Questrade Review you can check out if you’d like. Their commissions are the lowest I’ve seen and any Canadian should strongly consider using them as a brokerage.  Like most people, I have significant exposure to the greater U.S. equity markets with approximately 45% of my finance portfolio invested in large capitalization equities, which are components of the S&P 500 Index.

S&P 500

The S&P 500 Index tracks the combined performance of the 500 largest companies in the U.S.  So, buying a share in a mutual fund or Exchange-Traded Fund (ETF) that has an investment mandate to mirror the S&P 500 will give you returns equal to the index, less any fees and expenses related to managing the portfolio.  In other words, if I hear someone say “the S&P 500 went up 2% today”, then it is highly probable that about 45% of investment portfolio increased in value by 2% as well.

Now, I … Read the rest

Read More