Investment Q&A

Q: I am 25 years old and have my TFSA and FHSA maxed out. I will likely buy a house in 1-3 years. Should I start contributing (and investing) any additional money in my RRSP or in a cash investment account? Which ETF should I invest in? Thanks!

Q: What ETF would you buy to be long the market in this volatile environment (moderate risk - some income if possible)? If you can suggest 3 with a brief comment that would be great. Thank you.

Q: A friend is several years from retirement and is in this (quite good) finanical situation: a teacher who will get an Ontario Teachers' indexed DB pension, CPP and OAS. Owns a modest home in Toronto with no mortgage. No dependents. No debt. Can supplement income after retirement by continuing to teach at about a 20% course load. These income sources would more than cover her living expenses.
She also has an RSP that is currently managed by a financial advisor and holds mutual funds. Friend is asking if she should leave the advisor due to fees and his very conservative management. The RSP has underperformed the markets for an extended period. He sold her holdings at COVID bottom "to avoid further losses" and has said that "at her age" (about 60) she should stay away from equities and hold money market funds or bonds. Since my friend is not financially sophisticated, but is interested in learning, I am thinking a self-directed RSP holding several ETFs might be an alternative for her. Could you suggest three to five ETFs that would provide more growth potential in the 8 to 10 years before mandatory RIF conversion.

Q: How is a DRIP for VBAL advantageous for an investment in an RIF? Would it not be beneficial if the market value or the number of units increased rather than the cost base? I don't understand why my financial adviser would set this up. Please help me understand this investment in a registered account. Thank you for your invaluable service.

Q: Hello Team, I am currently sitting on cash in my FHSA, I would most likely be looking to use these funds in the next 5 years. What is your recommendation?

Q: Following up on Harrison's RESP question from February 10th, I'm seeking advice on ETF recommendations for my grandson's RESP. He turns two in March 2025, giving him approximately 16 years until he'll need the funds.
I appreciate your ETF recommendations, particularly the split between Canadian and US markets (VGG, ZSP, ZCN, XCG, VDY). I'm also considering ZUQ (BMO MSCI USA High Quality Index), but I'm wondering if it's too similar to ZSP? Your thoughts?
I do not like CDZs holdings as much.
You also mentioned two balanced ETFs in your response (XBAL and VBAL). The fixed income allocation is approximately 40% for these balanced ETFs. In contrast, XGRO and VGRO have a fixed income allocation of around 20%, and XEQT or VEQT have no fixed income. What I like about these allocation ETFs is they have some international exposure.
Considering the long-term horizon, I'm leaning towards XEQT/VEQT, which have no fixed income. My main question is whether the 20% fixed income component of XGRO/VGRO or even the XBAL/VBAL (40% fixed income) is necessary for a two-year-old’s RESP? Or are XEQT/VEQT too aggressive, considering the other ETFs mentioned?
Finally, wouldn't it be more appropriate to introduce a 100% fixed income ETF closer to the withdrawal age or perhaps three years before we start accessing the funds?
Deduct as many points as you think necessary.
As always thanks for the great advice.
Élaine

Q: Good morning, I have enjoyed and benefitted from my membership to 5I for many years. I am no longer in a position to actively manage my portfolio on a continuous basis and have been considering moving the core to an all-in- one balanced ETF like ZBAL or VBAL. The simplicity and ease of these types of ETF's appeals to me as I age. What are your thoughts on these ETF's and their place in an Seniors portfolio?

Q: Could you please help me understand the Capital Gains process for VBAL and how it affects my holdings. Actual amount is 0.337068 /share or 1%
"These amounts are for the year-end capital gains distributions only, which will be re-invested and the resulting units immediately consolidated, so that the number of units held by each investor will not change."

Thank you,
Mike

Q: Can you name a handful of ETF options for long term holds in my son's RESP account. Growth, dividend, and balanced. Looking for exposure in Canada and USA. I don't want the headache of managing stocks for this portfolio. I'd rather have something that I can just buy and not look at it for 15 years until he needs it.

Q: Just re-asking a question from 2013 - "Hi..was wondering if there is a screener of non-eligible dividends for tax..bascially want to enusure purchasing correct ones outside of any sheltered portfolios...thanks"
Also, can you advise if VBAL, VGG, VIG have non-eligible dividends.
Lastly, pls advise if there's any way to check before stock purchase what the subcategories there will be of dividend income and interest income.
Thanks for your quick reply to my earlier questions.
Many thanks in advance.

Q: Thoughts on an ETF for cash in a RESP that wont be required for 2-3 years. Would VBAL be a good choice?

Q: HI,

What ETF's would you recommend for a retirement portfolio consisting of 60% equity ETF's and 40% bond ETF's?

Much appreciated,
CG

Q: Good Morning

I would like to increase my US position in my RRSP. I currently cover this US exposure through VBAL(core position) VFV approx 4.5%, Legacy positions of ZLU and ZWH approx, 3%, totaling approx. 31% US. My thoughts were to replace ZLU/ZWH and increase VFV and add EQL to gain broader exposure to US market. Would this give me a good exposure without over duplication? I am retired and 65 and would like a balanced plus approach. Your thoughts or other ideas would be appreciated.

Thank you,
Mike

Q: Are these Canadian income ETFs a good place to sidestep potential Trump tariffs? Do you have other recommendations?

Q: Hello Peter,
I tried to balance growth and income as well as dividends (no with holding tax in RRSP for US stocks but there is in TFSA), and hence, can you let me know if these make sense for a mid 20s person starting off to have a more growth in TFSA and more income in RRSP.
TFSA: veqt, vgg, and xfn and maybe xic ( veqt has cdn exposure so thought i would exclude xic )
RRSP: vbal, zuq, xic, and xuu all of these trade on tsx. Much appreciated.

Q: Good afternoon,

I have around 18k in my FHSA currently all cash, I'm looking for some investment options to allocate that cash to but not sure of the best practice. I'm looking at purchasing my 1st home in 8-12 months. Would it be best to invest the 18k in different ETFs? Should I allocate 1/3, 1/3, 1/3? What would you recommend as diversification as well as some ETF's you think would be appropriate for my current situation.

Thanks!

Q: Hi

My partner has funds to invest in a TFSA for a 3–5+-year hold starting now. Can you please suggest several diversified ETFs that would be worth considering both USD and CAD hedged that are likely to see growth, including any mid-cap ETFs to consider. Please also suggest any bond ETFs to consider providing balance.

Thank you for the great service!

Q: I have a seven year old grandson with a disability that qualifies him for an RDSP. So I am looking for a long term investment strategy. Would you recommend ETFs? If so could you please suggest 3 ETFs. If not, ETFs what would you recommend?

Q: My wife has some money should would like to invest in eft. Which ones would you recommend.

Q: Which do you prefer for a 3 to 5 year hold and why? Looking forward minimum volatility and preservation of capital. Do you have other etf to look at? Thanx.