Q: Hi,
Do you think that the Growth Portfolio is poised to outperform the balanced portfolio moving forward? You've mentioned in other threads that small caps have underperformed in the past 5 years; is that compared to large caps, or is that compared to an index?
Also, when comparing both portfolios to American ETFs such as VFV, they both seem to underperform. Which portfolio would you recommend for a long-term 40-year hold in a TFSA to maximize returns? Or would you recommend a different investment into an American fund to maximize returns over that same time horizon?
I like the strategy of investing in small-cap stocks for higher growth but also don't want to disregard the balanced portfolio if you believe that small-caps will continue to underperform moving forward.
Looking forward to hearing your thoughts
Do you think that the Growth Portfolio is poised to outperform the balanced portfolio moving forward? You've mentioned in other threads that small caps have underperformed in the past 5 years; is that compared to large caps, or is that compared to an index?
Also, when comparing both portfolios to American ETFs such as VFV, they both seem to underperform. Which portfolio would you recommend for a long-term 40-year hold in a TFSA to maximize returns? Or would you recommend a different investment into an American fund to maximize returns over that same time horizon?
I like the strategy of investing in small-cap stocks for higher growth but also don't want to disregard the balanced portfolio if you believe that small-caps will continue to underperform moving forward.
Looking forward to hearing your thoughts