A simple tool to build an ETF-based portfolio with a mix of bonds and equities depending on your preferred risk level and available cash.
The sample ETF selections used here are based on the Model ETF Portfolios article from the Canadian Portfolio Manager.
Before building your portfolio, you will have to define your ETF allocation targets; that is, what proportion of your portfolio you want to invest into each ETF.
Your targets should be placed into a .csv file in the targets/ directory, and follow the format:
risk,ETF1,ETF2,ETF3,...
0,val01,val02,val03,...
1,val11,val12,val13,...
...
where ETF1,2,3,... are the ticker names for each ETF as it appears in Yahoo! Finance (including suffixes, such as ".TO" for stocks traded on the Toronto Stock Exchange), the first column denotes the risk level for that row, and val<ij> are the allocation of stock j, per risk level i, in your portfolio in percent (therefore each row should sum to 100).
The "risk level" is an integer and is normally treated on a scale from 0 (all bonds) to 10 (all equities).
Sample target ETF allocation files are provided in the targets/ directory: vanguard.csv and ishares.csv.
Run portfolio-builder.py and input your desired risk level, available cash to invest, and target allocation file.
Input the target allocation file either as the path to the file containing the ETF allocation targets, or as the name of a predefined portfolio.
If it is the latter, the portfolio builder will search the targets/ directory for a file of the form <targets>.csv, where <targets> is the name provided.
For example, to build a balanced (50% bonds, 50% equities) portfolio with $10000 CAD using Vanguard ETFs:
$ ./portfolio-builder.py -r 5 -c 10000 -t vanguard
Retrieving current ETF prices...
[*********************100%***********************] 7 of 7 completed
Done
Your portfolio:
~~~~~~~~~~~~~~~
ETF Price To Value % of Target % of
(CAD) Buy/Sell (CAD) Portfolio Portfolio
------ ------- ---------- ------- ----------- -------------
VAB.TO 25.850 113 2921.05 29.76 29.45
VBU.TO 25.680 33 847.44 8.63 8.54
VBG.TO 27.455 43 1180.56 12.03 12.01
VCN.TO 38.530 38 1464.14 14.92 15.00
VUN.TO 72.360 28 2026.08 20.64 20.67
VIU.TO 31.760 32 1016.32 10.35 10.37
VEE.TO 39.940 9 359.46 3.66 3.96
Total cost: $9815.06 CAD
Leftover cash: $184.94 CADIf you have an existing account, input the number of shares you own per ETF as a .csv file in the accounts/ directory. For example:
$ cat accounts/example.csv
VAB.TO,VBU.TO,VBG.TO,VCN.TO,VUN.TO,VIU.TO,VEE.TO
100,20,30,42,20,60,10Then, to rebalance your portfolio according to the 50% bonds, 50% equities targets as above, run:
$ ./portfolio-builder.py -r 5 -c 0 -t vanguard --rebalance
Reading current account data...
Retrieving current ETF prices...
[*********************100%***********************] 7 of 7 completed
Done
Your portfolio:
~~~~~~~~~~~~~~~
ETF Price Current To Total Value % of Target % of
(CAD) Quantity Buy/Sell Quantity (CAD) Portfolio Portfolio
------ ------- ---------- ---------- ---------- ------- ----------- -------------
VAB.TO 25.850 100 5 105 2714.25 29.62 29.45
VBU.TO 25.680 20 10 30 770.40 8.41 8.54
VBG.TO 27.455 30 10 40 1098.20 11.98 12.01
VCN.TO 38.530 42 -6 36 1387.08 15.14 15.00
VUN.TO 72.360 20 6 26 1881.36 20.53 20.67
VIU.TO 31.760 60 -30 30 952.80 10.40 10.37
VEE.TO 39.940 10 -1 9 359.46 3.92 3.96
Total cost: $-129.16 CAD
Leftover cash: $129.16 CADYou can also rebalance while investing additional cash. For example, to rebalance your portfolio according to the 50% bonds, 50% equities targets as above, while investing an additional $2000 CAD, run:
$ ./portfolio-builder.py -r 5 -c 2000 -t vanguard --rebalance
Reading current account data...
Retrieving current ETF prices...
[*********************100%***********************] 7 of 7 completed
Done
Your portfolio:
~~~~~~~~~~~~~~~
ETF Price Current To Total Value % of Target % of
(CAD) Quantity Buy/Sell Quantity (CAD) Portfolio Portfolio
------ ------- ---------- ---------- ---------- ------- ----------- -------------
VAB.TO 25.850 100 28 128 3308.80 29.65 29.45
VBU.TO 25.680 20 17 37 950.16 8.51 8.54
VBG.TO 27.455 30 19 49 1345.29 12.06 12.01
VCN.TO 38.530 42 1 43 1656.79 14.85 15.00
VUN.TO 72.360 20 12 32 2315.52 20.75 20.67
VIU.TO 31.760 60 -24 36 1143.36 10.25 10.37
VEE.TO 39.940 10 1 11 439.34 3.94 3.96
Total cost: $1866.56 CAD
Leftover cash: $133.44 CADYou'll notice there is large amount of cash left over in the above examples.
This is due to the requirement that the number of shares to buy or sell is an integer number and that the total cost is less than the cash available to invest.
If you want to allow fractions when computing the number of shares to buy/sell, use the --fractions option, for example:
$ ./portfolio-builder.py -r 5 -c 10000 -t vanguard --fractions
Retrieving current ETF prices...
[*********************100%***********************] 7 of 7 completed
Done
Your portfolio:
~~~~~~~~~~~~~~~
ETF Price To Value % of Target % of
(CAD) Buy/Sell (CAD) Portfolio Portfolio
------ ------- ---------- ------- ----------- -------------
VAB.TO 25.850 113.93 2945.00 29.45 29.45
VBU.TO 25.680 33.26 854.00 8.54 8.54
VBG.TO 27.455 43.74 1201.00 12.01 12.01
VCN.TO 38.530 38.93 1500.00 15.00 15.00
VUN.TO 72.360 28.57 2067.00 20.67 20.67
VIU.TO 31.760 32.65 1037.00 10.37 10.37
VEE.TO 39.940 9.91 396.00 3.96 3.96
Total cost: $10000.00 CAD
Leftover cash: $0.00 CADThe portfolio builder retrieves the current stock prices using the yfinance package, and uses the most recent "Close" price of that stock. Therefore the prices listed by the portfolio builder are not guaranteed to be the current "live" market price of the stock, and should serve as an approximate value only.
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