The Mercer Invest Wise Growth portfolio has around a 90% equity allocation. The growth portfolio is designed for an individual with a high risk tolerance. If you can bear large market fluctuations with relative ease and understand that there can be short-term periods of very poor performance, this portfolio is for you.
Warning: If you'd like to aim for the highest returns over the long-term, you need to be comfortable knowing that your portfolio can be subject to the largest losses during a market downturn. You should only have this risk profile if you're certain that you wouldn't panic and sell when and if markets drop significantly. Research shows that any investors, especially those new to markets, overestimate their risk tolerance. That's why we typically don't recommend a growth portfolio if you are newer to investing.
Our growth portfolio has 90% exposure to equities and 10% exposure to fixed income or bonds. It is invested in the following funds:
|BlackRock iShares Core S&P/TSX Capped Composite Index ETF||XIC||Over 250 Canadian equities representing 95% of the Canadian equity market||10.10%|
|Vanguard Total Stock Market ETF||VTI||Over 3500 large, medium, small and micro-cap companies mirroring the US equity market||23.00%|
|BlackRock iShares Core MSCI EAFE IMI Index ETF||XEF||Over 2800 large, medium and small cap companies across developed market countries, excluding the US and Canada||12.75%|
|BlackRock iShares Core MSCI Emerging Markets ETF||IEMG||Over 2300 large, mid, and small-cap stocks in more than 20 emerging markets||4.75%|
|Schwab U.S. Small-Cap ETF||SCHA||Over 1700 US small-cap companies||6.00%|
|Vanguard FTSE All-World ex-U.S. Small-Cap ETF||VSS||Over 3500 global small-cap companies, excluding the US||4.10%|
|BlackRock iShares Edge Min Vol Global ETF||ACWV||Global large and mid-cap equity strategy designed to minimize volatility||20.30%|
|BlackRock iShares Global Real Estate Index ETF||CGR||Global publicly traded real estate companies||4.50%|
|SPDR S&P Global Infrastructure ETF||GII||Global publicly traded infrastructure related companies||4.50%|
|BlackRock iShares Core Canadian Short Term Corp+Mpl Bond Index ETF||XSH||Short-term Canadian corporate bonds||2.50%|
|BlackRock iShares Core Canadian Universe Bond Index ETF||XBB||Broad universe of Canadian government and corporate bonds||7.50%|
The MER of this portfolio is 0.16%. The indicated dividend yield of this portfolio is 2.44%.
This portfolio is ideal for experienced investors with the following situations:
- If you have a long-term goal (buying a home, retirement, inheritance, etc) that's 10+ years away and are comfortable with seeing very large fluctuations in your account.
- If you're retired, have a pension or a stable source of income, and are comfortable with large fluctuations in your account. Note: if you're retired and your investments are your primary source of income, a growth portfolio is most likely not your best option.
- If you're investing a small portion of your total assets with Mercer Invest Wise and a large loss for that amount would not affect your ability to achieve your goals.
- If you're investing for a medium-term (~5 year) goal, prefer focusing on growing your money aggressively, but are willing to accept that you may have to push back the objective if markets drop significantly. A flexible time horizon can allow you to take more risks.
If you feel like one of your accounts should be in the Mercer Invest Wise growth portfolio but isn't at the moment, you can submit a request here.