Episode 416: Is VEQT Costing You? (& Other Questions)

(0:01:12) Whether investors should replace asset allocation ETFs with individual component ETFs to save on management fees. 

(0:01:40) Why simplicity has real economic value—and how small fee savings compare to behavioral costs. 

(0:05:38) Portfolio drift, rebalancing discipline, and the hidden costs of managing multiple ETFs. 

(0:06:08) How recent fee reductions narrowed the cost gap between VEQT and its component funds. 

(0:06:51) When using individual ETF components may make sense for larger portfolios or asset location strategies. 

(0:11:16) The hosts share their favorite board games—and why poker has surprising parallels to investing. 

(0:15:01) What true diversification actually means beyond simply owning the S&P 500. 

(0:16:07) Why the global market portfolio remains the logical starting point for most investors. 

(0:19:46) Addressing claims that modern index funds have become “too concentrated.” 

(0:21:52) Why active managers tend to lose their edge as assets under management grow. 

(0:22:15) Diminishing returns to scale and the efficient market for manager skill. 

(0:27:03) How defined benefit pensions should factor into portfolio construction and risk capacity. 

(0:33:53) Understanding fiduciary duty for Canadian portfolio managers and financial advisors. 

(0:37:17) Why publicly holding yourself out as a fiduciary carries legal and ethical implications. 

(0:39:22) Can individual investors outperform active funds by picking stocks themselves? 

(0:42:32) Why time, effort, and research alone rarely translate into market-beating performance. 

(0:45:04) Why international stocks have lagged U.S. equities—and why diversification still matters. 

(0:47:10) The role of valuation expansion in explaining decades of U.S. outperformance. 

(0:50:05) How to invest money earmarked for a home down payment over a three-to-five-year horizon. 

(0:53:31) Applying the same time-horizon framework to RESP investing and education savings.