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What are the PWL Capital portfolios?
PWL Capital, Toronto Edition Portfolios are exposed to between 20% to 80% stocks and, 20% to 80% bonds. They come in both Canadian and US variants. They can be built with just 4 ETFs. The portfolios range from low to high-risk portfolios.
How do you build PWL Capital portfolios with ETFs?
Here is how you build one of the PWL Capital investment portfolios
- 54% Total US Stock Market (VTI)
- 19% International Developed (VEA)
- 7% Emerging Market (VWO)
- 20% Total Bond Market (BND)
You can find many more portfolios further below in the post.
Right out of the gate, you’ll notice that the portfolio does not contain any Canadian stocks.
What is the historical returns of PWL Capital’s, Toronto Edition Portfolios?
Here is the historical return for PWL Capital’s, Toronto Edition Portfolios.
Portfolio data was last updated on 11th of November 2022, 11:40 ET
|Name||Year to date||Return in 2021||10 year return||CAGR since 1989 (%)||STDEV||Draw Down||Expense ratio||Yield|
|PWL Capital Toronto (CA) 100% Stocks||-17.82||20.11||11.13||9.2||16.29||-38.15%||0.05%||2.41|
|PWL Capital Toronto (CA) 90% Stocks||-17.5||17.78||10.33||9.06||14.72||-33.63%||0.06%||2.45|
|PWL Capital Toronto (CA) 80% Stocks||-17.13||15.59||9.6||8.94||13.17||-29.07%||0.06%||2.47|
|PWL Capital Toronto (CA) 70% Stocks||-16.93||13.26||8.85||8.76||11.68||-24.59%||0.06%||2.48|
|PWL Capital Toronto (CA) 60% Stocks||-16.61||10.93||8.01||8.52||10.22||-20.07%||0.07%||2.52|
|PWL Capital Toronto (CA) 50% Stocks||-16.25||8.73||7.24||8.3||8.85||-15.51%||0.07%||2.54|
|PWL Capital Toronto (CA) 40% Stocks||-16.04||6.4||6.45||8.02||7.61||-11.03%||0.07%||2.55|
|PWL Capital Toronto (CA) 30% Stocks||-15.77||3.97||5.55||7.76||6.66||-6.62%||0.08%||2.59|
|PWL Capital Toronto (CA) 20% Stocks||-15.4||1.77||4.74||7.45||5.91||-3.44%||0.08%||2.61|
|PWL Capital Toronto (US) 100% Stocks||-21.58||20.12||13.53||9.95||17.15||-39.44%||0.04%||1.92|
|PWL Capital Toronto (US) 90% Stocks||-21.13||17.89||12.49||9.67||15.48||-34.98%||0.04%||1.95|
|PWL Capital Toronto (US) 80% Stocks||-20.63||15.8||11.51||9.41||13.83||-30.48%||0.04%||1.96|
|PWL Capital Toronto (US) 70% Stocks||-20.19||13.57||10.45||9.05||12.2||-26.02%||0.04%||1.98|
|PWL Capital Toronto (US) 60% Stocks||-19.74||11.34||9.38||8.66||10.61||-21.56%||0.04%||2.01|
|PWL Capital Toronto (US) 50% Stocks||-19.24||9.25||8.37||8.29||9.07||-17.06%||0.04%||2.02|
|PWL Capital Toronto (US) 40% Stocks||-18.79||7.02||7.28||7.83||7.61||-12.61%||0.04%||2.04|
|PWL Capital Toronto (US) 30% Stocks||-18.38||4.69||6.14||7.41||6.38||-8.27%||0.04%||2.07|
|PWL Capital Toronto (US) 20% Stocks||-17.89||2.6||5.1||6.94||5.34||-3.77%||0.04%||2.08|
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
How does the PWL Capital’s, Toronto Edition Portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
PWL Capital’s portfolios do contain allocations to Canadian stocks. They overweight Canadian stocks quite a bit.
That’s a general trend that we have noticed with Canadian wealth managers and Canadian investing experts. They overweight quite massively Canadian stocks. This makes me conclude that Canadians have a considerable home country bias. But who can blame them? Canada is beautiful!
Canada also sports one of our favorite companies in the world, Brookfield Asset Management.
For the portfolios to be useful to the rest of the world and the US, in particular, we have made US counterpart portfolios from PWL Capital’s Canada heavy portfolios.
It means that we have swapped Canadian stock allocations to US stocks and we have swapped Canadian bonds with US bonds,
In the performance section further below in this post, you can see the US stock portfolios and the Canadian stock portfolio side by side. This is an added benefit.
How do PWL Capital portfolios compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
Who is PWL Capital?
PWL Capital was founded in 1996. It is a wealth management and financial planning firm. In 2020 they have four offices in Canada shared among their six teams.
We have known about PWL Capital for quite some time as they tend to spread their knowledge around. They have a podcast, and many of their employees do solo educational things on the side that has to do with financial planning or investing. See the resource section below to catch some links.
In that regard, they share a commonality with Ritholz Wealth management. Many of the employees at Ritzholz also do things on the side, be it blog authors, book authors, etc.
We like that approach as you can’t fake real interest and passion, so I don’t see the side hustles as marketing even though it serves that purpose. Wouldn’t you want to work with someone who loves what they do rather than somebody who just considers working with you their job?
you can’t really fake real interest and passion
I also like their no-nonsense attitude. Right there on their front page, it states:
Integrated Financial Planning and Asset Management. No fads. No guesswork. No drama.
Description of PWL Capital, Toronto Edition Portfolios
PWL Capital has a lot of investment portfolios. Each team at PWL Capital has its own set of investment portfolios. I’m not entirely sure of the organizational structure of PWL Capital, but this makes sense for PWL Capital.
There is one thing that all of the PWL Capital Portfolios share, and that is simplicity.
They rarely use exotic asset classes. Instead, they are asset class light and favor broad asset classes.
The portfolios that are displayed below are from the Toronto office and are meant for a taxable account. They also have portfolios for retirement accounts.
What is the asset allocation for PWL Capital’s, Toronto Edition portfolios?
Here is the asset allocation for the PWL Capital US portfolios and the Candian portfolios.
|Portfolio Name||Total US Market (VTI)||International Developed (VEA)||Emerging Markets (VWO)||Total Bond Market (BND)||Stocks Canada (VCN)||Bonds Canada (VAB)|
|PWL Capital Toronto (CA) 100% Stocks||34%||24%||9%||33%|
|PWL Capital Toronto (CA) 90% Stocks||30%||22%||8%||30%||10%|
|PWL Capital Toronto (CA) 80% Stocks||27%||19%||7%||27%||20%|
|PWL Capital Toronto (CA) 70% Stocks||24%||17%||6%||23%||30%|
|PWL Capital Toronto (CA) 60% Stocks||20%||15%||5%||20%||40%|
|PWL Capital Toronto (CA) 50% Stocks||17%||12%||4%||17%||50%|
|PWL Capital Toronto (CA) 40% Stocks||14%||10%||3%||13%||60%|
|PWL Capital Toronto (CA) 30% Stocks||10%||7%||3%||10%||70%|
|PWL Capital Toronto (CA) 20% Stocks||7%||4%||2%||7%||80%|
|PWL Capital Toronto (US) 100% Stocks||67%||24%||9%|
|PWL Capital Toronto (US) 90% Stocks||60%||22%||8%||10%|
|PWL Capital Toronto (US) 80% Stocks||54%||19%||7%||20%|
|PWL Capital Toronto (US) 70% Stocks||47%||17%||6%||30%|
|PWL Capital Toronto (US) 60% Stocks||40%||15%||5%||40%|
|PWL Capital Toronto (US) 50% Stocks||34%||12%||4%||50%|
|PWL Capital Toronto (US) 40% Stocks||27%||10%||3%||60%|
|PWL Capital Toronto (US) 30% Stocks||20%||7%||3%||70%|
|PWL Capital Toronto (US) 20% Stocks||14%||4%||2%||80%|
Where can I learn more about PWL Capital?
PWL Capital’s YouTube channel act as a hub for all the videos the employees put out.
Benjamin Felix and Cameron Passmore from PWL Capital hosts the Rational Reminder podcast. It is excellent, and they have some interesting guests.
PWL Capital has a research section on their site where they try to make sense of the investing world.
Canada Couch Potato is made by Dan Bortolotti, portfolio manager at PWL Capital.
Canadian Portfolio Manager is a site made by Justin Bender of PWL Capital.
Suggestions for your next steps
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You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
Rebalancing lowers your portfolio risk and can increase your returns.