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