-
iShares Core S&P/TSX Capped Composite Index ETF (XIC)
-
Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
-
Vanguard S&P 500 Index ETF (VFV)
Until the RRSP has enough funds to start thinking of diversification, what are the "top 3" possible stocks or ETFs you would consider if only having one investment, and if you could explain why its' a sound investment for each that'd be great.
Thanks very much,
Dave
For a small amount of cash, we would prefer an extra ETF, for instant diversification. Also, many brokerages allow for ETF buying to be commission-free. VFV trades in Canada, so currency conversion is not an issue. Fees are low (0.09%) and it represents the S&P 500 index, so it is essentially a representation of the US market, which we think will continue to do well, long term. XIC is the equivalent in Canada, representing the Canadian market. VIU has higher fees at 0.22% but is an international fund that represents 'ex North America'. Thus, a combination of these three essentially gets one global coverage. We have selected equity-only funds with the consideration that timeframe is very long, and money will not be needed for sometime.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.