Investment Q&A

Q: Hi. I recently transferred $20,000 into my RRSP Direct Investing account. I would like to invest the money into some quality ETFs, perhaps three or four. I know you are not clairvoyants, however based on geo-politics and recent tariff threats, which ETFs (either Canadian, American or other parts of the world) would you invest in at this particular time. It would be for a 2/3 year hold. Thanks for the advice in advance.

Q: A friend is several years from retirement and is in this (quite good) finanical situation: a teacher who will get an Ontario Teachers' indexed DB pension, CPP and OAS. Owns a modest home in Toronto with no mortgage. No dependents. No debt. Can supplement income after retirement by continuing to teach at about a 20% course load. These income sources would more than cover her living expenses.
She also has an RSP that is currently managed by a financial advisor and holds mutual funds. Friend is asking if she should leave the advisor due to fees and his very conservative management. The RSP has underperformed the markets for an extended period. He sold her holdings at COVID bottom "to avoid further losses" and has said that "at her age" (about 60) she should stay away from equities and hold money market funds or bonds. Since my friend is not financially sophisticated, but is interested in learning, I am thinking a self-directed RSP holding several ETFs might be an alternative for her. Could you suggest three to five ETFs that would provide more growth potential in the 8 to 10 years before mandatory RIF conversion.

Q: I am getting ready to DCA into these stocks in an unregistered account with higher than average risk profile. According to me, these stocks had a bit of a pullback with possibly more on the way.

In what order would you DCA into the stocks mentioned above? Is there any stock that you think should be excluded from this list?

Thanks

Q: Can you recommend an ETF for a TFSA with a 5-10 year horizon?

Q: Can you please share your favourite ETF for Dow Jones, S&P500 and TSX

Please share in CDN dollars hedge and unhedged. Plus in USA dollars

Thanks for the great service.

Q: Hello 5i Team,
Currently building out a small portfolio for my son, with a VERY long time horizon (30 years +). Looking to add U.S. exposure, but instead of picking individual names, I thought I would do this through an ETF or two. Was considering putting 50% of the US exposure into SPY, and the other half into VGG. An alternative to SPY would be ZSP, which I can buy in Cdn. dollars in Toronto. Your thoughts on this strategy and the allocations?
Thanks very much!

Q: Following up on Harrison's RESP question from February 10th, I'm seeking advice on ETF recommendations for my grandson's RESP. He turns two in March 2025, giving him approximately 16 years until he'll need the funds.
I appreciate your ETF recommendations, particularly the split between Canadian and US markets (VGG, ZSP, ZCN, XCG, VDY). I'm also considering ZUQ (BMO MSCI USA High Quality Index), but I'm wondering if it's too similar to ZSP? Your thoughts?
I do not like CDZs holdings as much.
You also mentioned two balanced ETFs in your response (XBAL and VBAL). The fixed income allocation is approximately 40% for these balanced ETFs. In contrast, XGRO and VGRO have a fixed income allocation of around 20%, and XEQT or VEQT have no fixed income. What I like about these allocation ETFs is they have some international exposure.
Considering the long-term horizon, I'm leaning towards XEQT/VEQT, which have no fixed income. My main question is whether the 20% fixed income component of XGRO/VGRO or even the XBAL/VBAL (40% fixed income) is necessary for a two-year-old’s RESP? Or are XEQT/VEQT too aggressive, considering the other ETFs mentioned?
Finally, wouldn't it be more appropriate to introduce a 100% fixed income ETF closer to the withdrawal age or perhaps three years before we start accessing the funds?
Deduct as many points as you think necessary.
As always thanks for the great advice.
Élaine

Q: Hello, 1.How does one protect them selves from large market crashes?
2. If one were to start a portfolio with only index funds, etfs which are the ones you would suggest. Maximum 5 etfs. Thanks.

Shyam

Q: Can you name a handful of ETF options for long term holds in my son's RESP account. Growth, dividend, and balanced. Looking for exposure in Canada and USA. I don't want the headache of managing stocks for this portfolio. I'd rather have something that I can just buy and not look at it for 15 years until he needs it.

Q: Hello, for a 25 year old with $ 500.00 to invest in the TFSA, which of the above would you suggest?
Also, how about for a 27 year old with $ 100K, which one(s) would you suggest? Finally, does BMO have a S&P500 unhedged?
As a quick calculation the Unedged has retuned ~ 6% more with BMO (ZQQ /ZNQ) and ~ 12% with the ishare ( XQQ/XQQU). Right?
Thanks
Carlo

Q: Hello Peter and 5i Team! it is an RESP account.

A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.

For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:

ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)

Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.

I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.

So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.

Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?

Thanks for your excellent insights and wisdom!

Q: I have been moving some of my stocks to ZSP or VDY believing this is more conservative as I should be as an older senior. Am I right or have I just made this up?

Q: I am looking for a Canadian ETF with American exposure with a low mer. What do you suggest.
Thank you
Richard

Q: It is rare that I ask this question coming from an 84 year old senior, but all the above equal weighted ETF's are presently in my TFSA and can't decide how to invest for the 2025 contribution. Which ETF I should I be adding to the above list or should I be adding a new one that is not in the portfolio?
Also are any of those listed that do not belong in a TFSA?
Thanks for your usual great service.

Q: Looking for investing suggestions for someone in there mid twenties that has a very good job and are just starting out investing, I was thinking buying a few ETFs that auto buy every paycheck through a big bank brokerage arm kind of set it and forget till they figure out if they want to learn more about investing. Also what would be a good basic investing book that teaches how RRSPs and TFSAs work? Is Gordon Pape still around, lol.

Q: Hello Peter,
I tried to balance growth and income as well as dividends (no with holding tax in RRSP for US stocks but there is in TFSA), and hence, can you let me know if these make sense for a mid 20s person starting off to have a more growth in TFSA and more income in RRSP.
TFSA: veqt, vgg, and xfn and maybe xic ( veqt has cdn exposure so thought i would exclude xic )
RRSP: vbal, zuq, xic, and xuu all of these trade on tsx. Much appreciated.

Q: Could you suggest some ETFs in a non registered account ($100k) and in TFSA ($60k) for a retired person who would not need those funds for the next 10 years?

Q: Can you please recommend an equivalent ETF to VOO or MGK that is denominated in Cdn dollars. Thank you.

Q: Is there a "Best" S&P500 Index ETF, or are all the same? Which has performed the best last year?

Thanks!

Q: I have a seven year old grandson with a disability that qualifies him for an RDSP. So I am looking for a long term investment strategy. Would you recommend ETFs? If so could you please suggest 3 ETFs. If not, ETFs what would you recommend?