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BMO Low Volatility Canadian Equity ETF (ZLB $59.18)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $43.49)
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iShares MSCI USA Min Vol Factor ETF (USMV $94.16)
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Vanguard Balanced ETF Portfolio (VBAL $38.03)
Q: My wife has never dabbled in the markets and has often labelled it as too risky. She has tended to stay with GIC’s or higher interest saving accounts, yeilding perhaps 2-3.5% annually. However, after seeing returns on some of my equities and ETF’s she is reconsidering. While I know you cannot personalize what is best for her, can you please give your highest conviction for lower risk stocks/etf’s for an RRSP (about 130K) with a 3-5 year window. I have shown her RoR on Canoe ETF (about 8%) and HMAX (about 12%). Lower risk stocks like BN or GOOG are also being considered. Your input would be greatly appreciated. Thanks again for all the great work you do!
Brian
Brian
5i Research Answer:
The timeframe noted is quite short so we would certainly side on the conservative side. CDZ as a dividend ETF could work. VBAL as a balanced fund probably better. HMAX as a covered call fund provides high yield and a small cushion in a downturn. BN or GOOG would be our choice for stocks but not each has been volatile and we might wait until a new investor is more comfortable overall before buying individual stocks. ZLB is a low-volatility Canadian ETF; USMV is a low-vol US fund.