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  5. XBAL: If starting an RESP account today, would you go with Portfolio A or B? [iShares Core Balanced ETF Portfolio]
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Q: If starting an RESP account today, would you go with Portfolio A or B? Will start drawing from account in 5 years.
A. VBAL
B. 40% XHY & 60% XWD, rebalanced annually
Thanks
Asked by Curtis on October 31, 2024
5i Research Answer:

It is a tough call; XWD is a 'world' ETF, but it is still 73% US-equity based. VBAL is far more 'balanced' in terms of equity exposure (35% US and 41% Canada). XWD is 3% Canada. On the equity side, it will come down to US/Canada performance. Considering if one wants a balanced approach, we would side with VBAL here. VBAL is also only 10% corporate bonds, with XHY all corporate, so VBAL's fixed income portfolio has inherently less risk. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.

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