8 ms·

> That gives slightly better than the inflation rate ( Canada ). What do you mean? Over the last year any one of the index funds I'm in has beat inflation by a

> That gives slightly better than the inflation rate ( Canada ). What do you mean? Over the last year any one of the index funds I'm in has beat inflation by a factor of five, some beat inflation by an order of magnitude. My worst performer is an iShares world fund, which generally has more temperate gains, clocking in at 10% YoY. Looking at Canadian indices such as $VCN, it's the same story.

betaby 10mo ago
As of October 2025, in the previous 30 Years, the Vanguard FTSE Canada All Cap Index (VCN.TO) ETF obtained a 8.72% compound annual return. ~2x better than the official inflation over the same 30 years. I don't see the factor of five or order of magnitude. Also those gains are taxable.
- YZF 10mo ago
  If you're in Canada you almost certainly want to diversify from Canadian indices. US markets have tended to outperform. Indices can return >20% one year and -10% other years. I think OP is talking recently, not over 30 years. Over the long term indices like the S&P 500 tend to have a real return of 6-7% ...
  - osti 10mo ago
    That's the biggest problem I have with the recommendation to buy indices as if indices grow at >8% annually is an natural law. Many (most) indices of countries in the world performed way less than 8%. US performed exceptionally well over almost a century so people are starting to take it as a natural law. If I buy US index, I'm still putting a directional bet on US stock market performing at an exceptional rate.
    - throw0101a 10mo ago
      One can buy "all-in-one" index-of-index funds that have all US equities, all EU, etc. In Canada (which sub-thread stated with), see VEQT or XEQT (100% equities), VGRO/XGRO (80/20), VBAL/XBAL (60/40), VCNS/XCNS (40/60). You can probably find an 'asset allocation' fund in most countries; e.g., in the US: * https://investor.vanguard.com/investment-products/mutual-funds/life-strategy-funds https://investor.vanguard.com/investment-products/mutual-fun... There are also (more dynamic) 'target date' funds, where the bond allocation increases over time.
      - osti 10mo ago
        Yeah, and those have underpermed historically and it's definitely not recommended by most people.
        throw0101a 10mo ago
        > Yeah, and those have underpermed historically […] Huh? Underperformed what, exactly? A globally-diversified portfolios of stocks have underperformed …a globally-diversified portfolios of stocks? …tech stocks? …consumer staples? …utilities? …Treasuries? 1/3/5/10/20-year annualized returns are available at: * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio... > […] and it's definitely not recommended by most people. Again: huh? Who is not recommending index funds for most people? And what is recommended "by most people" if not index funds?
        osti 10mo ago
        Look at IXUS or VEU for example, in the past 5-10 years, or even longer, they have significantly underperformed US indices.
  - throw0101d 10mo ago
    > If you're in Canada you almost certainly want to diversify from Canadian indices. US markets have tended to outperform. If you buy "all-in-one" VEQT/XEQT (100% equities) you are buying an index funds of index funds: all Canadian equities, all US equities, EU, etc: * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio... * https://canadiancouchpotato.com/model-portfolios/ https://canadiancouchpotato.com/model-portfolios/ If you don't want 100% equities, there are VGRO/XGRO (80/20), VBAL/XBAL (60/40), VCNS/XCNS (40/60), etc.

betaby 10mo ago

As of October 2025, in the previous 30 Years, the Vanguard FTSE Canada All Cap Index (VCN.TO) ETF obtained a 8.72% compound annual return. ~2x better than the official inflation over the same 30 years. I don't see the factor of five or order of magnitude. Also those gains are taxable.

YZF 10mo ago
If you're in Canada you almost certainly want to diversify from Canadian indices. US markets have tended to outperform. Indices can return >20% one year and -10% other years. I think OP is talking recently, not over 30 years. Over the long term indices like the S&P 500 tend to have a real return of 6-7% ...
- osti 10mo ago
  That's the biggest problem I have with the recommendation to buy indices as if indices grow at >8% annually is an natural law. Many (most) indices of countries in the world performed way less than 8%. US performed exceptionally well over almost a century so people are starting to take it as a natural law. If I buy US index, I'm still putting a directional bet on US stock market performing at an exceptional rate.
  - throw0101a 10mo ago
    One can buy "all-in-one" index-of-index funds that have all US equities, all EU, etc. In Canada (which sub-thread stated with), see VEQT or XEQT (100% equities), VGRO/XGRO (80/20), VBAL/XBAL (60/40), VCNS/XCNS (40/60). You can probably find an 'asset allocation' fund in most countries; e.g., in the US: * https://investor.vanguard.com/investment-products/mutual-funds/life-strategy-funds https://investor.vanguard.com/investment-products/mutual-fun... There are also (more dynamic) 'target date' funds, where the bond allocation increases over time.
    - osti 10mo ago
      Yeah, and those have underpermed historically and it's definitely not recommended by most people.
      - throw0101a 10mo ago
        > Yeah, and those have underpermed historically […] Huh? Underperformed what, exactly? A globally-diversified portfolios of stocks have underperformed …a globally-diversified portfolios of stocks? …tech stocks? …consumer staples? …utilities? …Treasuries? 1/3/5/10/20-year annualized returns are available at: * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio... > […] and it's definitely not recommended by most people. Again: huh? Who is not recommending index funds for most people? And what is recommended "by most people" if not index funds?
        osti 10mo ago
        Look at IXUS or VEU for example, in the past 5-10 years, or even longer, they have significantly underperformed US indices.
- throw0101d 10mo ago
  > If you're in Canada you almost certainly want to diversify from Canadian indices. US markets have tended to outperform. If you buy "all-in-one" VEQT/XEQT (100% equities) you are buying an index funds of index funds: all Canadian equities, all US equities, EU, etc: * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio... * https://canadiancouchpotato.com/model-portfolios/ https://canadiancouchpotato.com/model-portfolios/ If you don't want 100% equities, there are VGRO/XGRO (80/20), VBAL/XBAL (60/40), VCNS/XCNS (40/60), etc.