A benchmark is a useful way to assess the performance of your portfolio relative to the performance of the overall market. An income portfolio aims for the preservation of capital with a guaranteed income stream while a growth portfolio aims to grow invested capital over the long term. This strategy minimizes risk by making long-term investments in companies that show consistent growth over time.
|Income + Growth Index portfolio
||Growth Index portfolio
|35% S&P/TSX CDN Equity Index, 15% S&P 500 U.S. Equity Index (CAD), 5% MSCI World Equity Index (CAD), 40% FTSE CDN Bond Index, 5% cash||45% S&P/TSX CDN Equity Index, 25% S&P 500 U.S. Equity Index (CAD), 5% MSCI World Equity Index (CAD), 20% FTSE CDN Bond Index, 5% cash|
- The S&P/TSX Index is the benchmark Canadian index, representing roughly 70% of the total market capitalization on the Toronto Stock Exchange (TSX) including about 250 companies. The TSX is made up of more than 1,500 companies
- The Standard & Poor’s 500 (S&P 500) is an American stock market index based on the market capitalization of 500 large companies having common stock listed on the NYSE or NASDAQ. It is one of the most commonly followed equity indices, and many consider it a bellwether for the U.S. economy.
- The MSCI World Index is a market capitalization weighted stock market index of 1,649 stocks from companies in developed markets throughout the world.
- The FTSE TMX Canada Universe Bond Index is comprised of Canadian investment-grade bonds which mature in more than one year.