-
Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-Hedged) (VI)
-
Vanguard S&P 500 Index ETF (VFV)
I have a question about opening $10,000 RESP for our granddaughter who is 11 yrs old. An extra $2,500 will be added each year to qualify for the $500 from the gov't.
We are newbies to RESP's so pardon our ignorance for our lack of knowledge. Our current service is through a CDN bank so each transaction costs $. That is ok for us as a buy and hold strategy. For an RESP, is it best to open an account with Wealth Simple to avoid fees? We would like a DRIP stock(ETF) and then a suggestion how to manage the additional funds that are added each year. Do you have any suggestions?
Thank you for your service. Without question, 5i is the best value that I have ever found. It is our go to reference and we let everyone know if they pay for one service, 5i is the best choice.
D&J
Thank you for the kind words;
When starting out, and assuming a 10 year time frame, we would suggest a diversified ETF. One could start with VFV for US exposure, or a combination of VFV and VI (ex North America) to cover the world. We do not recommend specific brokers but would note many alternative brokers allow customers to buy ETFs with no fees, and this can be quite beneficial if an investor is continually putting in new cash. Fees, even $10 on $1000, can add up and hurt returns. As new money comes in, one can diversify some more or even move into some individual stocks. We would suggest 'conservative growth' ideas, such as BN, TRI or IFC. Any equity of equity-based ETF can be volatile, but over 10 years we would expect decent returns from all of these securities mentioned.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.