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Vanguard Balanced ETF Portfolio (VBAL)
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iShares Core Balanced ETF Portfolio (XBAL)
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BMO Balanced ETF (ZBAL)
Q: Good Afternoon,
When using the 60/40 etfs (VBAL, XBAL, ZBAL) in an RRSP, what would you consider to be the most prudent way of splitting up +$100,000 for a long term hold (30-40 years)?
Ie:
100% in one etf?
50/50 split between two etfs?
3 way split between three etfs?
And in general, at what dollar value in a single 60/40 etf do YOU start to feel uncomfortable?
Thank you!
When using the 60/40 etfs (VBAL, XBAL, ZBAL) in an RRSP, what would you consider to be the most prudent way of splitting up +$100,000 for a long term hold (30-40 years)?
Ie:
100% in one etf?
50/50 split between two etfs?
3 way split between three etfs?
And in general, at what dollar value in a single 60/40 etf do YOU start to feel uncomfortable?
Thank you!
5i Research Answer:
XBAL has the lowest fees (tied with ZBAL) and the best three year performance. We would be comfortable with a 50/50 split of XBAL and VBAL, with VBAL winning second place as it is significantly larger. With an ETF over $1B in assets (as both are), we would fine with $300,000 exposure each.