Q: My TFSA doesn't have enough cash yet to diversify. I decided to use a broad index ETF to diversify 75% of the account and to specify a single stock for the remaining 25%.
I feel that an investor has a moral responsibility to buy specific stocks based on merit and not just indexes. As the portfolio grows I'll be able to diversify later and add a variety of specific stocks.
I just joined 5I reseach this evening and I've got 75% invested in a ETF covering the Canadian market as a whole (VCE - FTSE Canada Index) with the remaining 25% invested in Blackberry (BB). I plan to select from your "A" stocks in small and midcap companies to replace Blackberry if it becomes overvalued.
I can afford to lose the money in my TFSA but hope to build a TFSA that can withstand rough waves. Is this a reasonable plan and how should I go about selecting from your lists to replace Blackberry when the time comes? Should I replace it with one of your picks now?
Thanks for being there to help - I look forward to your answer - Doug
I feel that an investor has a moral responsibility to buy specific stocks based on merit and not just indexes. As the portfolio grows I'll be able to diversify later and add a variety of specific stocks.
I just joined 5I reseach this evening and I've got 75% invested in a ETF covering the Canadian market as a whole (VCE - FTSE Canada Index) with the remaining 25% invested in Blackberry (BB). I plan to select from your "A" stocks in small and midcap companies to replace Blackberry if it becomes overvalued.
I can afford to lose the money in my TFSA but hope to build a TFSA that can withstand rough waves. Is this a reasonable plan and how should I go about selecting from your lists to replace Blackberry when the time comes? Should I replace it with one of your picks now?
Thanks for being there to help - I look forward to your answer - Doug