Portfolio Advice
Hello,
I am a Canadian investor who has been interested in leveraged portfolios for some time, and I would like to gather some feedback on my current plan. I exclusively use CAD-listed ETFs, as I find it cumbersome to convert currency for my weekly contributions. While I recognize that I am limited in product selection and will likely face higher drag due to fees, I have accepted these trade-offs.
TFSA
I contribute $500 per week, split between two strategies:
Strategy 1 ($250/week): 9Sig using TQQQ.TO, with CBIL.TO as a cash reserve.
Strategy 2 ($250/week): A 60/20/20 allocation of SPXU.TO (2x daily bull S&P 500), XTLT.TO (CAD-listed TLT, we dont have a ZROZ equivalent), and ZGLD.TO (gold).
Both strategies are rebalanced quarterly. My reasoning is that if the first strategy suffers a significant drawdown, the second provides a safer foundation to fall back on.
RRSP
Whenever I have extra cash, I make lump-sum purchases split 50/50 between:
USSL.TO (125% cash-leveraged S&P 500)
QQQL.TO (125% cash-leveraged Nasdaq 100)
I do not DCA into these; I simply buy and hold when funds are available.
My investment horizon is 25 years. I am currently 28, and I will be eligible for a pension at the end of my career. Thank you for your time! Please be honest regarding whether I am on the right track or if I should consider a different approach. While I believe I can handle market drawdowns and crashes, my main concern with relying solely on a fund like TQQQ.TO is the risk of catastrophic loss. I prefer a diversified approach that I can consistently contribute to, even during market downturns.
Cheers.
CanadianInvestor9