Q: Hello, I wanted to buy XBAL for half of my TFSA, but realized there was 15% in the TSX and I already have plenty of that in my cash account. Instead, I am thinking of having 60% in XAW, 25% in XBB and 15% in VGAB. Does this make sense? Thanks!
5i Research Answer:
While we cannot personalize responses, we feel this approach makes sense. 25% in XBB + 15% in VGAB provides an investor with 40% exposure to bonds, across a variety of geographies and maturities. 60% in XAW provides an investor with global equity exposure excluding Canada, and is primarily invested in US stocks (63%).