-
iShares Diversified Monthly Income ETF (XTR $12.10)
-
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $43.53)
-
Vanguard Balanced ETF Portfolio (VBAL $38.25)
Q: Regarding my family RESP I set up for my two kids, it will start to be used next year and they will be in school for six years. I was thinking of moving a portion into CDZ for the next few years because I consider it more stable than keeping it in the single stocks that it's currently in. Do you agree or have a different ETF or a few you could recommend?
5i Research Answer:
We like CDZ for its decent yield and solid holdings, it has a low volatility level, but it has experienced a 40% drawdown twice in the past (2009 and 2020, arguably blackswan-type events) and 20% declines around four times since 2009 (2016, 2019, 2022, 2025). We like it for a long-term hold, but there are instances where it can see equity-like declines.
We also like VBAL or XTR for more moderate volatility.
While we cannot personalize responses, we also have a general rule of thumb on allocations here