The Mercer Invest Wise Conservative portfolio has around a 40% equity allocation. This portfolio has been designed for a conservative investor with a relatively low risk tolerance. If you are willing to accept relatively small short-term losses and prefer stability and a modest return, this portfolio is for you.
Our conservative portfolio has 40% exposure to equities and 60% 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||4.50%|
|Vanguard Total Stock Market ETF||VTI||Over 3500 large, medium, small and micro-cap companies mirroring the US equity market||10.20%|
|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||5.65%|
|BlackRock iShares Core MSCI Emerging Markets ETF||IEMG||Over 2300 large, mid, and small-cap stocks in more than 20 emerging markets||2.15%|
|Schwab U.S. Small-Cap ETF||SCHA||Over 1700 US small-cap companies||2.50%|
|Vanguard FTSE All-World ex-U.S. Small-Cap ETF||VSS||Over 3500 global small-cap companies, excluding the US||2.00%|
|BlackRock iShares Edge Min Vol Global ETF||ACWV||Global large and mid-cap equity strategy designed to minimize volatility||9.00%|
|BlackRock iShares Global Real Estate Index ETF||CGR||Global publicly traded real estate companies||2.00%|
|SPDR S&P Global Infrastructure ETF||GII||Global publicly traded infrastructure-related companies||2.00%|
|BlackRock iShares Core Canadian Short Term Corp+Mpl Bond Index ETF||XSH||Short-term Canadian corporate bonds||15.00%|
|BlackRock iShares Core Canadian Universe Bond Index ETF||XBB||Broad universe of Canadian government and corporate bonds||45.00%|
The MER of this portfolio is 0.12%. The indicated dividend yield of this portfolio is 2.63%
This portfolio is ideal for the following situations:
- If you have a goal (buying a home, saving for a vacation, etc) that's fairly short-term (3-5 years) and are only comfortable with small fluctuations in your account.
- If you're retired and are only comfortable with small fluctuations in your account.
- If fluctuations in your account make you very nervous but you're okay with a low level of fluctuations to try to grow the funds by more than what a savings account can generate.
If you feel like one of your accounts should be in the Mercer Invest Wise conservative portfolio but isn't at the moment, you can submit a request here.