Vanguard Canada Launches 5 New ETFs

Five New Vanguard Canada ETFs

First Published Date: September 5, 2013

Low cost ETF guru Vanguard Investments Canada Inc. launched 5 more new ETFs in August. Vanguard entered the Canadian ETF market in December 2011 and currently its total ETF portfolio consists of 16 ETFs, including these 5 newcomers. Let’s look at these 5 new ETFs briefly.

VCN – FTSE Canada All Cap Index ETF MER 0.12% – VCN tracks (net of expenses) the performance of the FTSE Canada All Cap Index. The difference between VCN and Vanguard’s other similar ETF VCE FTSE Canada Index is in its holdings. VCE holds about 77 large and mid-cap stocks. On the other hand, VCN offers more diversification by holding 277 large, mid, and small cap stocks.

VDU – FTSE Developed ex North America Index ETF MER 0.28% – VDU tracks (net of expenses) the performance of the FTSE Developed ex North America Index. The difference between VDU and Vanguard’s other similar ETF VEF FTSE Developed ex North America Hedged CAD Index is that unlike VEE, VDU has no currency hedging. The FTSE Developed ex North America Index provides exposure to developed countries excluding North American or emerging market stocks. If you remember my older posts on iShares 5 New ETFs, XEF – iShares MSCI EAFE IMI Index ETF MER 0.30% offers broader diversification by holding 2479 stocks, while VDU holds 1338 stocks.

VUN – U.S. Total Market Index ETF MER 0.15% – VUN tracks (net of expenses) the performance of the CRSP US Total Market Index that holds about 3582 large, mid, small and micro cap stocks. VUN is basically the non-hedged version of Vanguard’s VUS.

VGG (Non-Hedged) and VGH (Hedged) U.S. Dividend Appreciation Index ETF MER 0.28% – These ETFs track (net of expenses) the NASDAQ US Dividend Achievers Select Index that holds about 146 U.S. companies that have increased dividends over time. Some other U.S. dividend ETFs listed on TSX are XHD, CUD, ZDY.

There are about 281 ETFs trade on the Canadian TSX. The number is much higher in the U.S. at 1490 ETFs. Vanguard has about $2.5 trillion global assets under management ($285 billion in ETF). BlackRock iShares is the world’s largest asset manager and the world’s largest ETFs provider with about $3.6 trillion global assets under management ($645 billion in ETF).

Lenovo Twist 12.5 Touchscreen Laptop Review

Lenovo ThinkPad Twist Convertible UltraBook

First Published Date: September 12, 2013

Lenovo Twist Laptop Review

I bought my last laptop Acer Aspire Timeline about three years ago and so far it has worked without any problems. I kept it in crisp condition and was able to sell it for $200. This time, to try something different I decided on buying a Lenovo ThinkPad Laptop/Tablet. This is my first time buying a Lenovo product.

Specifications

– 3rd generation Intel Core i7-3537u processor 2.00 GHz 4MB cache

– 500 GB Hard drive

– 8 Gig RAM

– It’s an Ultrabook combining laptop/tablet together that can bends, twists, folds, and spins.

– Dolby® Home Theater® Stereo speakers

– Magnesium Alloy Construction – only 20 mm thick and weighs 3.45 lbs

– A hybrid hard drive and solid state drive. Active Protection System prevents hard drive from system failure.

– Wakes up from sleep mode in two seconds

– Spill resistant keyboard

Cons

– Feels a bit heavier than other Ultrabook. I think this is due to its heavier keyboard. A feature to detach screen from the keyboard would have been nicer.

– Although Lenovo says battery has 6 hours life, I cannot get it to work more than 4 hours.

– I don’t understand or see any value in The TrackPoint center button. I find it meaningless, but it could be due to the fact that I never dealt with such a button in my life.

– I am not impressed with its Dolby® Home Theater® Stereo speakers. My cheap $250 Acer Netbook has a better sound system.

My Take

I like its rugged, rubberized durable construction. Its overall design and looks feel and look elegant and extraordinary. If you don’t mind the few cons I mentioned above, I think the Lenovo ThinkPad Twist Convertible is worth its value (around $1000 to $1100 + taxes in Canada).

Some Facts About Mongolia Economy

Economy of Mongolia

First Published Date: September 19, 2013

Mongolia is the world’s most sparsely populated country with an area of approximately 604,000 square miles – making it the 19th largest country on earth. Mongolia’s emerging economy is mainly based on herding, agriculture, and its over US$1.3 trillion resource sector.

Before the 1990s, Mongolia’s economy was mainly dependant on aids from the USSR. Following the dismantlement of the USSR, Mongolia suffered deep recession and political and natural disasters leading to economic reforms, and eventually opening up its boundaries for free-market economies and privatization of the government-run economy.

Mongolia opened its first stock exchange in 1991 and joined the World Trade Organization in 1997. Economic growth was slightly less than 10% from 2004-2008, 6.5% in 2010, 18% in 2011, and 12% in 2012. Mongolia saw its economy contract 1.5% in 2009 right after the global financial crisis.

Mongolia’s 2012 GDP was $15.22 billion – making it 140 on the country rank comparison to the world. However, GDP growth was an astounding 333% from 1981-212 – making it 5th on the list comparison list for 2012. Mongolia is forecasted to be one of the top five fastest growing economies on earth over the next decade. GDP per capita for 2012 was $5,400, or 149 on the world comparison list.

Mongolia is rich in agriculture and mining. Mongolia exports meat, wool, and cashmere. In natural resources, Mongolia holds and exports copper, molybdenum, fluorspar, tin, tungsten, coal, uranium, precious and semiprecious stones, and gold. Mongolia is the world’s number one cashmere producer and is home to one of the world’s largest copper mines.

As Mongolia is rich in natural resources and perfectly positioned to meet China’s insatiable demand, foreign investments are pouring in. As the years go by, things are looking brighter for this amazing country.

5 Retirement Mistakes To Avoid

Five Retirement Planning Mistakes

First Published Date : April 11, 2012

Unexpected global economic fluctuations and downturn have made Canadians rethink and reevaluate their retirement strategies. And in a time like this, a mistake can be irreversible and can go a long way. The best suggestion? Avoid mistakes in the first place. Today, I will look at some common mistakes to avoid.

Not Planning Early and Setting Goals – If you have just joined the workforce and happen to bump into this article – congratulations! A lot of us make the mistake to plan and set realistic goals early enough to achieve it. You should have a clear picture of when you want to retire, how you would like to retire, how much income you need to support yourself, where you would like to live, etc.

Investing and Diversifying too Conservatively – If you are too conservative, you may keep all your money, but it is almost guaranteed that you will lose out to inflation. Technology has brought so many modern day investment vehicles (one example is ETF) to regular investors these days, which was unimaginable just 5-10 years ago. You need several considerable investments with a moderate diversification.

Misunderstanding Expenses – Don’t make the mistake of overestimating or underestimating your retirement needs. Make a list of all your expenses and try living on that before your actual retirement. Keep in mind that some expenses will gradually drop out once you retire.

Misunderstanding Debt Management – Don’t look at debt management the traditional way. One simple example is paying off your mortgage or investment loans ASAP. If you have investment loans that earn you more than the interest you pay to carry the loan, it may not make sense to pay off investment loans or mortgage on an accelerated pace as you can earn more money if you use the extra payments towards investments that have higher returns.

Misunderstanding Tax Consequences – You can re-energize your retirement assets and income if you go through proper tax planning. Optimized, tax efficient income retirement assets will last a lot longer than those without proper tax planning.
The best way to handle all these I mentioned above is to educate yourself on various retirement aspects. Although retirement planning looks black and white on the surface, it is complicated and it is unlikely that you will know all the ins and outs by yourself. I always recommend consulting a retirement professional to discuss your unique situations.

China Currency Gets More Freedom start

China Doubles Currency Trading Band

First Published Date: April 19, 2012 ADawnJournal.com

China took another step towards the future to make its currency globally compatible on Saturday, April 14, 2012. The Chinese government announced that it will increase the trading band or range in which the renminbi (or the yuan) can trade against the dollar from 0.5 percent to 1 percent.

The fluctuation will still be done against a fixed benchmark, and this benchmark is set by the central bank. However, allowing it to fluctuate from 0.5 percent to 1 percent will increase China’s currency role in the global financial markets.

Although the U.S. has been demanding more currency freedom from China to ease its unfair advantage to exporters in China, this doubling the size of the renminbi’s trading band against the dollar may not work the same way as the U. S. is expecting.

The yuan increased about 4 percent in 2010 and about 5 percent in 2011. Many Chinese leaders believe that the yuan is close to an equilibrium. The yuan’s outlook among investors in the offshore non-deliverable forward market is not rosy and it is believed that there is room for the currency to depreciate. Also, as China is going through the slowest economy in a decade, Beijing is willing to concentrate more on its domestic economic growth than foreign export. A more flexible currency may give Chinese exporters more room to maneuver, making the currency lower than going higher.

As China wants to see the yuan as a global reserve currency and Shanghai as global financial and banking centre, the Chinese government is gradually allowing its currency to trade more freely and expect more moves from the Chinese government to achieve its dreams.