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  5. TXF: I have a small RRSP account that is half in TXF. [CI Tech Giants Covered Call ETF]
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Investment Q&A

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Q: I have a small RRSP account that is half in TXF.TO and half in US cash. I will not need access to this account for at least ten years. Overall, my portfolio is very diversified. But I am trying to decide what to do with this account. I was thinking 1) about putting the US cash into VOO 2) and/or selling TXF.TO and only holding VOO. My other thought was 3) putting the US cash into a US REIT or 4) a US ETF paying a good distribution. Would you have any thoughts? And if you think a US REIT or US ETF would be a good idea, could you provide a few suggestions? Thanks.

Asked by Kim on November 24, 2022
5i Research Answer:

We consider VOO as one of the best ETFs to own due to its low expense (0.03%), size $274B, and overall diversification. We believe over the long term, owning a diversified portfolio of sectors, and industries would prove to be a simple, low-cost but effective investment strategy to build wealth in the long-term.

US REITs and TXF.TO are also decent, but are specifically sector focused and will not offer the same level of diversification.

We have no issues with income or dividend ETFs such as VIG,  but with a 10-year time period we think a focus on growth is more suited for most investors. We would be quite happy owning a large position in VOO.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in TXF, VIG.