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Vanguard Balanced ETF Portfolio (VBAL)
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RBC Monthly Income Fund Series A (RBF448)
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Vanguard Retirement Income ETF Portfolio (VRIF)
Q1. Could you please share your thoughts on the appropriateness of both of these funds or any other you may wish to recommend for a single 75 year old retiree with $200,000 in a TFSA ($88,000 and the balance ($112,000) in a Non-Registered account?
Q2. Do you have a preferred ETF and/or mutual fund that has the potential of distributing 4% to 5% for the next 15 years with no legacy concern?
Thank you.
We can't provide personal approoriateness but can offer this: RBF448 is a conservative fund with a since-inception return of 6.1%. We would consider it fine for a retiree, but its performance has put it into the 3rd and 4th quartile recently. But it is unlikely to 'surprise' investors much. But it has lost money before: 3.4% in 2015, 3.2% in 2018, and 7.9% in 2022. It is not risk free and fees are high at 1.16%. It would not be our favourite. VBAL we think is fine, with fees of 0.25% and a five year return of 5.93%. It has 60% equity exposure so not risk-free but we think it is a solid one-stop-shop relatively-conservative ETF. VRIF has a higher bond component, and can be considered conservative. Indicated yield is 4.39% and it is up 4.4% over one year. It has a shorter history than the others. Fees are 0.32%. It would be our choice if an investor wanted a more conservative approach with still some potential for gains.