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BMO S&P 500 Index ETF (ZSP)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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Vanguard Balanced ETF Portfolio (VBAL)
Q: Hello, I am helping my 25 year old daughter put together a sleep at night portfolio. She is not a hands on or active investor.
She has about $ 100K and of these selections which ones would you suggest? And, what else would you recommend?
in Addition to Canada, I want US exposure with ZSP, especially with the potential growth of AI.
Thanks
Carlo
She has about $ 100K and of these selections which ones would you suggest? And, what else would you recommend?
in Addition to Canada, I want US exposure with ZSP, especially with the potential growth of AI.
Thanks
Carlo
5i Research Answer:
Of ZSP, XIC and XEI, we would prefer ZSP. We think the US will do better than Canada, and the ETF contains a broader, wider list of stocks. Owning the best 500 companies in the US is likely safer as well (note not risk free of course). But we think some Canadian exposure is wise for an investor in Canada, and would be fine with some XIC. If only these two are owned WE would be comfortable with a 65/35 split ZSP/XIC. XEI we think is fine for dividend exposure, but there would be some overlap with XIC. For a new, non-active investor, we might suggest looking at a balanced fund such as VBAL, which would add at least some fixed income exposure (VBAL is 40% bonds currently).