It's been a tough month for the Y HAT RRSP, which is down 8.14% since inception in August 2007. XIN, the portfolio's EAFE ETF, is down 19.1%; XSP, its S&P 500 holding, is down 9.9%. The only holding not in the red is my short bond ETF, XSB, which is up 1.72%.
I'm not surprised with XIN's performance as I knew it was volatile from the get go: from 1969 to 2006, the standard deviation for EAFE's annual returns has been 21.4%. Despite my awareness of this volatility, however, it still hurts to see my investment drop by 20%.
So what have I done to the Y HAT RRSP given all this market turmoil? My original investment plan was to move funds into the portfolio during this first quarter and I have begun doing so by purchasing more XIN (at $23.50). My next purchase will be more XSB, given that the Bank of Canada will probably be lowering interest rates over the year.
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