Q: I am transferring a work RRSP in cash and need to invest the proceeds. $80k for a 63 year old. I am thinking of allocating this into ETF’s. Please recommend which ones and the allocation.
Can take on reasonable risk.
Can take on reasonable risk.
5i Research Answer:
While we cannot personalize responses, for a balanced approach, we like the Vanguard Balanced ETF (VBAL). It has a good AUM of $2.5B, a decent MER of 0.24%, and a yield of 2.3%. It takes a balanced approach with a 60/40 portfolio of equities and bonds, and is diversified across North America, with some slight exposure to the international markets.
For a slightly higher-risk approach, we like the Vanguard Growth ETF (VGRO). It has an AUM of $4.4B, an MER of 0.24%, and a yield of 2.2%. It has a higher growth tilt than VBAL, with an equity-to-bond split of 80/20.