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BMO S&P 500 Index ETF (ZSP $97.40)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC $46.00)
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Vanguard S&P 500 Index ETF (VFV $158.01)
Q: Hi All at 5i!! A young friend is starting to invest in his TFSA. He has a long time horizon. Basically, he wants to just put the money into the TFSA and let it grow until retirement in an uncomplicated manner. (IOW no individual stocks). If you were to suggest an ETF, would VFV fit the bill, or would he be better off investing in a more structured ETF which encompasses several markets (US,Canadian etc) and a small bond holding as well?. What would you suggest?
Cheers,
Tamara
Cheers,
Tamara
5i Research Answer:
We would be fine with VFV, though ZSP would have marginally better tax treatment in a TFSA because it owns its stocks directly and not via another fund. While asset allocation needs to be personal, for a 'young' investor we would see less need for any bond exposure. With some currency risk and a bit of an aversion to the US right from international investors, we might pair ZSP with some Canadian exposure via XIC.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.