Monthly Dividend Portfolio Review

In my ever persistent pursuit to ensure that my asset allocation is in line with my targets, I have completed a trade to further dollar-cost average into a particular index fund I hold. This down market has taken many industries, sectors, and global regions down with it and I wanted to take advantage of that. Here is what my asset allocation looked like as of July 20, 2008:

The Dividend Guy Asset AllocationClick to Enlarge

As you can see, I am not doing too badly (other than Canadian holdings which I am working on). However, one area of weakness is in the Global Equity – Emerging Markets. I did my initial buy of the Vanguard Emerging Markets E.T.F. (VWO) in April, at which time the fund went higher for a while, but then with the market meltdown I am in the hole slightly. As this is a very long-term holding for me, I wanted to take advantage of this price weakness to buy more units.

Vanguard Emerging Markets ETFClick to Enlarge

This purchase will bring my holdings of this fund to approximately 2.5% of my overall portfolio, still somewhat off my target of 5%. I will add to the fund at a later date, when more money becomes available. I want to ensure I have this percentage of my money in emerging markets to both manage the risk in my portfolio as well as to take advantage of the strong growth that emerging markets has seen over a number of years. I fully expect to see drops from time to time, but over the long-term I am expecting strong growth from this area in my portfolio.

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2 Comments   |  

2 Comments

Charles in Vancouver
July 21, 2008, 4:57 pm

Hey Dividend Guy,

I noticed you are a customer of Canadian ShareOwner. I e-mailed them this question a little while ago but I didn’t get an answer. Perhaps you could enlighten me.

Can ShareOwner customers purchase equities that aren’t on the pre-screened list (i.e. at the $29 rate)? If so, are they eligible for dividend reinvestment?

August 4, 2008, 12:17 am

[...] – my portfolio is performing better than the market. The primary reason for this I believe is the diversification moves I made earlier on in the year. Spreading out into more global funds (including emerging [...]

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