Q: Question for a 30-year-old starting an RRSP with a growth-oriented focus. He has little interest in managing a portfolio, so the intent is a simple portfolio that is on autopilot (using automatic monthly DCA) with a yearly review.
The idea is to use XEQT. Does it make sense to add XUS or VFV to XEQT to add more US exposure to potentially improve returns over such a long period of time? Say DCA 75% XEQT and 25% XUS?
Would there be a better ETF to pair up with?
Much appreciated.
The idea is to use XEQT. Does it make sense to add XUS or VFV to XEQT to add more US exposure to potentially improve returns over such a long period of time? Say DCA 75% XEQT and 25% XUS?
Would there be a better ETF to pair up with?
Much appreciated.
5i Research Answer:
It is a tough call, and essentially a call on the US markets, of course. XEQT is listed at 21% US. The US has outperformed for 10 years, but not so much in the past year. But we think some additional exposure through ZSP (or VFV) would make sense here.