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iShares Core S&P/TSX Capped Composite Index ETF (XIC $53.02)
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Brookfield Corporation Class A Limited Voting Shares (BN $56.70)
Q: My RRSP has a roughly 50/40/10 split between core compounders, defensive holdings, and income holdings. I will not need any of the money for at least five years. What do you think of the split? Could I please get your top stock and ETF recommendations for an RRSP today? Also, what do you think of FIE, ZRE, and covered call ETFs in an RRSP? Thanks.
5i Research Answer:
The split looks OK, though if money is not needed at all for five years we might move to 60/30/10 as a less-defensive stance. For a general recommendation we would side with BN and XIC. FIE has performed well and for sector exposure we think is fine. Fees are a bit high. ZRE is of course sensitive to rates. The real estate sector in Canada may not be so hot this year, but for sector exposure we like its equal weight approach and would be comfortable. Covered call ETFs are decent, but most are seeing decaying asset value. If one really needs income, we are comfortable with most. But for an RRSP we would prefer straight equity ETFs if timeframeis more than five years, in order to capture more potential upside.