The last time the Bank of Canada lowered its target interest rate was in March, but interest-sensitive stocks have been reacting as if they had never paused.

Utilities, pipelines, banks, and telecoms have been edging higher all year. The result was a gain of 6.7 per cent for my Internet Wealth Builder RRSP Portfolio for the six months from Feb. 21 to Aug. 21.

I know, no one is interested in RRSPs in August. But you should be. An RRSP is your personal pension plan, and it needs care and attention. That means reviewing it periodically to see if changes are needed. I revisit our model RRSP Portfolio twice annually.

I launched this portfolio in February, 2012. It has two main objectives: to preserve capital and to earn a higher rate of return than is available from a GIC. The original value was $25,031.92.

The portfolio contains a mix of ETFs and stocks, so readers who wish to replicate it must have a self-directed RRSP with a brokerage firm.

These are the securities we currently hold, with comments on how they have performed since the last review in early September. Results are as of the afternoon of Aug. 21.

iShares 0-5 Years TIPS Bond Index ETF (XSTP-T). This ETF invests in short-term U.S. Government inflation protected notes. They pay a low rate of return, but both the face value and the interest increase as inflation rises. This provides downside portfolio protection. The units are down $0.35 since the last review in February. We received distributions that totalled $0.845 per unit. Note that while distributions are monthly, they vary considerably in amount.

CI High Interest Savings ETF (CSAV-T). We added this high-interest ETF at the time of our review in August 2023. It was trading at $50 at that time, and it’s designed not to vary too much from that level. This fund invests in high-interest deposit accounts at Canada’s major banks. It earns a better rate of return than a retail customer can obtain because of its hefty purchasing power. The units are down $0.01 since the last review, and we received monthly distributions totalling $0.648 a unit. Note that as interest rates fall, the payout will decline.

BMO S&P/TSX Banks Equal Weight Index ETF (ZEB-T). This ETF invests in shares of the Big Six Canadian banks. Banking stocks have done well in recent months, and this ETF has benefited, with a gain of $6.04 a unit. Monthly distributions totalled $0.855.

iShares Edge MSCI Minimum Volatility USA Index ETF (CAD-Hedged) (XMS-T). XMS invests in low-beta US stocks. Low beta means they are less sensitive to broad market movements and, in theory, less risky. The fund posted a small gain of four cents in the latest period. Quarterly distributions totalled $0.208 a unit.

BMO Low Volatility Canadian Equity ETF (ZLB-T). This ETF invests in a portfolio of large-cap Canadian stocks that have a low beta history. It’s up $6.61 since the last review. We received two quarterly distributions for a total of $0.56.

BMO Low Volatility International Equity Hedged to Canadian Dollar ETF (ZLD-T). This ETF focuses on international stocks and is hedged to Canadian dollars, so the currency risk is removed. It gained $1.20 in the latest period. Distributions totalled $0.34 a unit.

Brookfield Corporation (BN-T). Brookfield operates in a range of business areas, including real estate, asset management, renewable resources, infrastructure, and insurance. The stock continues to edge higher and is up $2.68 since the last review. We received two quarterly dividends for a total of $0.252.

Enbridge (ENB-T). Enbridge offers an attractive yield (currently 5.7 per cent) and modest capital gains potential. The stock is up $6.44 since the last review, and the quarterly dividend is $0.9425.

Fortis Inc. (FTS-T). Interest-sensitive stocks did very well in the latest period, with Fortis gaining $8.17. We received two dividends of $0.615 a share.

Manulife Financial (MFC-T). We replaced BCE with Manulife at the time of our last review in February. The stock is down slightly since, but due to timing, we received three dividends for a total of $1.32 a share. The net result was a small gain of 1.7 per cent for the six months.

Interest. We had a cash balance (including retained income) of $2,946.12. We kept it in EQ Bank which was paying two per cent on retirement accounts. We received interest totalling $29.46.

Here is how the RRSP Portfolio stood as of Aug. 21. Commissions have not been factored in. All amounts are in Canadian dollars.

Comments: Every security in the portfolio showed a profit in the latest period, although a few were very small. The biggest gains were posted by Fortis, Enbridge, and the BMO Low Volatility Canadian Equity ETF.

Over the 13½ years since the portfolio was launched, we have a total return of 225.3 per cent. That’s an average annual growth rate of 9.16 per cent, well ahead of our target.

Changes: The portfolio is performing well and has significant downside protection through its holdings in XSTP and CSAV. Therefore, we won’t make any changes at this time, other than reinvesting some of our retained earnings as follows.

XMS – We’ll buy another 10 units for a cost of $386.60. This will give us 160 units and clear out all retained earnings. We’ll take $11 from cash to make up the difference.

ZLB – We’ll use all our retained earnings to buy 10 units for a cost of $552. We now own 170 units. We’ll take $2.32 from cash to complete the transaction.

The new cash balance (including retained income) is $3,061.22. We will move it to Tangerine Bank which is offering a promotional rate of 4.5 per cent for five months on new accounts.

Here is the revised portfolio. I’ll review it again in February.

Gordon Pape is the editor and publisher of the Internet Wealth Builder and Income Investor newsletters.