Recent Sell – Index Funds

I’ll keep this short. Another couple of sales to report in our portfolio.

Last week I sold two index funds that we’ve owned only since last year (holding period of about 18 months):

  • BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
  • Vanguard FTSE All World Ex-Canada Index ETF (VXC.TO)

Recent Sell Decision

  • This stock market continues trading at crazy valuations while all fundamentals have collapsed underneath. I am cashing out at what I consider to be market tops.
  • Yes, this is market timing. Get over it 🙂

Overall return (including dividends during holding period of 18 months):

  • 3.6% for ZCN.TO
  • 4.2% for VXC.TO

4 thoughts on “Recent Sell – Index Funds

  1. Hi R2R,

    I fully agree with you that valuations are crazy and it is difficult to find some interesting ideas. On the other hand I am wondering – was valuation 18 months ago more appealing? Which fundamentals are you talking about? Labour market is still very strong…

    Best regards,
    DividendTIME

  2. Never a big fan of trying to time the market. Who knows what direction Mr. Market is going to turn? As the last commentor said, we all probably thought the market had crazy valuations at this same time over the last few years as well. Best of luck with your strategy. I’m interested to see how it plays out for you!

    Bert

    • No one really knows where the market is going, Bert. However, there are a lot of markers that we are reaching levels of unsustainability unless some drastic steps are taken. Market timing in this case makes sense to me 🙂

      cheers
      R2R

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