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RESP - need some high growth ideas

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  • Oct 16th, 2017 6:31 pm
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[OP]
Jr. Member
Jan 10, 2011
128 posts
12 upvotes

RESP - need some high growth ideas

I opened an RESP a year ago when my daughter was born. 16 yr hold period left and I'm looking for some high flying growth ideas. Not being able to hold US listed securities is a real bummer.
I'm big on tech so I own ZQQ (which i like better than SP500 index), SHOP, KXS

Traded weed stocks around this year but don't own any right now. Considering getting back in on next sector pullback.
19 replies
[OP]
Jr. Member
Jan 10, 2011
128 posts
12 upvotes
I think you can only own Canadian listed stocks in an RESP. That’s why I own the zqq, which is 40% weighted to Apple, google, fb, Microsoft, amazon.

I’ve tried and the system won’t take my order for non-Canadian stocks. Looking for some high risk Canadian ideas.
Sr. Member
Dec 3, 2014
987 posts
170 upvotes
Ontario
method_lam wrote:
Oct 12th, 2017 9:07 pm
I think you can only own Canadian listed stocks in an RESP. That’s why I own the zqq, which is 40% weighted to Apple, google, fb, Microsoft, amazon.

I’ve tried and the system won’t take my order for non-Canadian stocks. Looking for some high risk Canadian ideas.
We don’t really have comparables in Canada to the US FANG type stocks. The risky stocks in Canada are often sketchy but still seem popular around here, think PHM. You want risky? How about Valeant?

What about some emerging markets ETFs
Deal Addict
User avatar
Oct 14, 2001
1450 posts
249 upvotes
GMA
Here's my take on it. Consider this money as your daughter's money and not your own, and invest accordingly. You might want to focus on today's tech darlings with aggressive growth in mind for your own money but I'd suggest a more diversified strategy for your kid.
Deal Addict
Jan 21, 2014
2074 posts
476 upvotes
method_lam wrote:
Oct 12th, 2017 9:07 pm
I think you can only own Canadian listed stocks in an RESP. That’s why I own the zqq, which is 40% weighted to Apple, google, fb, Microsoft, amazon.

I’ve tried and the system won’t take my order for non-Canadian stocks. Looking for some high risk Canadian ideas.
Which broker are you with? I was with TDDI and I actually only traded US stocks in my daughter RESP account. You just tell them to wash the trade each time so they don't convert your USD and back to CAD, but instead buy USD money market. That was 2016 and earlier so I don't know if anything changes since
Member
Jul 27, 2017
443 posts
103 upvotes
GTA
method_lam wrote:
Oct 12th, 2017 9:07 pm
I think you can only own Canadian listed stocks in an RESP. That’s why I own the zqq, which is 40% weighted to Apple, google, fb, Microsoft, amazon.

I’ve tried and the system won’t take my order for non-Canadian stocks. Looking for some high risk Canadian ideas.

You can hold US stocks in the RESP, just be careful they are not dividend stocks otherwise you get dinged the 15% tax

The US tech ETF that do not have dividends should be OK, as with any other stocks that don't have dividends unless you are OK with dividend stocks & paying 15% tax because you want some dividends + growth
[OP]
Jr. Member
Jan 10, 2011
128 posts
12 upvotes
Whaaaat? I use BMO Investor line for the RESP and it only lets me place orders for stocks that settle in Canadian dollars. Maybe they set up my account wrong....ugh.

Ya I hate that US withholding tax and it's too bad RESP isn't exempt from that....but then again it's not a retirement account so I get it.

@Thanh - Totally agree with you and not trying to be foolish here. I'm also saving/investing for her outside of the RESP. So given the tax shield and grant money in the RESP, I'm looking for some homeruns in here.
Deal Addict
Nov 9, 2013
1850 posts
639 upvotes
Edmonton, AB
method_lam wrote:
Oct 13th, 2017 9:57 am

@Thanh - Totally agree with you and not trying to be foolish here. I'm also saving/investing for her outside of the RESP. So given the tax shield and grant money in the RESP, I'm looking for some homeruns in here.
Richard Thaler recently won a Nobel Prize for his work in behavioural economics and he described something called the House Money effect.

I think perhaps you might find it interesting.
Deal Addict
Jan 21, 2014
2074 posts
476 upvotes
Another nice thing about TDDI's RESP is you can do Norbert's Gambit instantly since it doesn't have separate USD account (I did it before). I bought ABX.US and it was immediately available in my account as ABX.TO. I could then sell either to .TO or .US, if I chose .TO, the proceed will be in CAD and the cost of purchase will be settled from my USD Money Market fund. No need to journal
Member
Feb 26, 2017
246 posts
62 upvotes
I've tried to take more risk in my TFSA than my RRSP looking to max out my returns. Some of it might be random but over the last 5 years my IRR has been 10% higher in my RRSP where I've done much less trading and invested in more 'boring' companies.
Deal Addict
Jan 21, 2014
2074 posts
476 upvotes
^ same with me. My non-registered account is > 20% YTD and yet all of my registered accounts (TSFA,RRSP) is like around 7-8%. I closed the RESP last year when my daughter finished the undergrad. I did quite alright for her actually doing all the high risk trading. We could only contribute $29.5K (max amount for her age) and I managed to turn into $56K+. It could have been $16K more if I weren't greedy on one of the pharmaceutical stocks
Deal Addict
Jan 20, 2016
1214 posts
436 upvotes
Burlington, ON
method_lam wrote:
Oct 12th, 2017 5:45 pm
I opened an RESP a year ago when my daughter was born. 16 yr hold period left and I'm looking for some high flying growth ideas. Not being able to hold US listed securities is a real bummer.
I'm big on tech so I own ZQQ (which i like better than SP500 index), SHOP, KXS

Traded weed stocks around this year but don't own any right now. Considering getting back in on next sector pullback.
It's easy. Just buy stocks that will go up.

p.s. TDB965 is
weighted to Apple, google, fb, Microsoft, amazon
and about ~20% yearly returns *

* not guaranteed in future, as others

p.s.s. dumb plain TDB902 (S&P500) beat your ZQQ over 5 years, that about chances

I'd suggest instead of gambling take broad index portfolio like 20% XIC 80% XAW and start adding bonds/GIS in next 5-10 years...
Sr. Member
Oct 11, 2010
901 posts
264 upvotes
Charlottetown
buy marijuana ETF HMMJ

If you want to be really careless I think you can do leveraged inverse stocks in registered
Deal Addict
User avatar
Aug 1, 2007
1279 posts
129 upvotes
For starting early with RESP, I use a CCP-like approach but use a combination of XUH, BIP482 (BIP480 if the broker doesn't allow the D-class) and MAW150.

The two funds are definitely higher MER cost than index ETFs but I think their processes have a good chance of outperforming.

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