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  5. CBO: Good morning, Two general questions [iShares 1-5 Year Laddered Corporate Bond Index ETF]
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Investment Q&A

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Q: Good morning,

Two general questions:

1. I am fortunate in that I have now maxed out my TFSA contribution. Could you give me an idea of what sort of investments I should have in a TFSA vs. a cash account? 

2. According to portfolio analytics I am underweight in Fixed Equity. Underweight, in that I have none. Could you give some direction as to what to include for the fixed equity portion of a portfolio and provide some suggestions. 

Thank you for your help!

Asked by Stefan on May 25, 2021
5i Research Answer:

Typically we prefer more growth oriented names in a TFSA, as the tax advantages can be significant for a name that grows alot in those accounts over the long-term. From a tax efficiency standpoint, if an RRSP is maxed out, then you would still want ot put the highest tax burden investments in the account, such as fixed income. 

For fixed income, we think a mix of ETFs can offer sufficient exposure to the space. ETFs like XBB, CBO, and XHY should be a good starting point in creating a 'base' for fixed income.