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iShares Russell 2000 Growth ETF (IWO $318.82)
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iShares Core S&P 500 Index ETF (XUS $56.17)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $42.68)
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BMO Canadian High Dividend Covered Call ETF (ZWC $21.07)
Q: Sometime ago, there was a question requesting your suggestions about ETF's for a young person just starting to invest in a TFSA. Unfortunately, I couldn't find it.
Wondering about ZWC and XUS (50/50) for my 19 year old grandson's first investments in his TFSA but any other recommendations would be appreciated.
Thanks as always for your assistance. It is appreciated.
Wondering about ZWC and XUS (50/50) for my 19 year old grandson's first investments in his TFSA but any other recommendations would be appreciated.
Thanks as always for your assistance. It is appreciated.
5i Research Answer:
We think ETFs make sense when starting out. We have no issue with ZWC, but covered call funds will tend to lag over time (giving up gains for enhanced current income). For a young investor with a long time frame, we would prefer a straight equity ETF such as CDZ. XUS is solid for general US exposure. IWO may be of interest for some small cap growth exposure, depending on risk profile. VIU may be of interest later when there is more capital in the account, to set up some international exposure.