Hey everyone, just finished cleaning up my allocations across my TFSA, RRSP, and Non-Reg. I’m heavily focused on Factor Investing (Small-Cap Value, Momentum, Quality) and trying to be as tax-efficient as possible.
Here’s the logic:
-
TFSA (CELI): Using the new CIBC Avantis CAD-listed funds (CAUS, CACE, CADE, CAEM, CAUV). I know some are super new/not fully listed on all trackers yet, but they’re great for getting Avantis factors in CAD.
-
RRSP (REER): Sticking to US-listed Dimensional (DFA) and Avantis (DFAC, DFIC, DFEM, AVUV, AVDV). This is to dodge the 15% withholding tax on dividends and keep the internal yield high.
-
Non-Reg: 100% Global X (Horizons) Corporate Class (HXS, HXCN, HXDM, HXEM). Since I’m a civil servant, I want to avoid taxable dividends and turn everything into deferred capital gains.
Rebalancing Rules:
-
TFSA/RRSP: Rebalance every 3 months if a position drifts by 3%.
-
Non-Reg: Rebalance annually (January) if it drifts by 5%.
Current Geo Split: ~53% US / 20% Canada / 15% Int / 11% EM. Plus some small satellite plays in energy/robotics (TNZ, PNG).
Does 3% drift for rebalancing seem too "active," or is it worth it to keep the factor tilts tight? Any red flags you see?
Cheers