Investing

If you could invest in only 1 ETF,, what would it be and why?

  • Last Updated:
  • Jun 30th, 2020 10:05 am
Banned
Jun 15, 2012
2837 posts
1007 upvotes
Saskatoon
VT
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

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Member
Jan 4, 2017
365 posts
261 upvotes
I do XGRO, because it has the allocation I want (80/20), it's globally diversified and I believe it has a smaller Canada component vs VGRO. For simplicity and consistency, I opt to dollar cost average in a predetermined proportion of my income on a biweekly basis no matter what. Since I switched to Scotia for the same reason ("keep it simple, stupid") with the "Ultimate" bundle, I use iTRADE which gives me the free trades for certain ETFs, hence making XGRO the obvious choice.

I have went through different phases as I learned more about investing, including using Tangerine index funds, TD e-series, picking my own stocks for dividend growth investing (using TD during that time), and finally deciding to do the ETF thing after much deliberation. Previous methods all worked fine for me, but I eventually realized that I don't have it in me to put Rodbarc levels of effort into this for decades, and anything less than that feels like too much of a gamble IMO.

Making a biweekly contribution to a low-fee globally diversified ETF is something I can confidently stick to. Unless something goes horribly wrong in my life I don't see any reason why I should have to change course from here. That peace of mind has contributed to me not tinkering at the wrong times, such as our recent sharp drop due to covid response. Kept on keepin on, no problemo.
Deal Addict
Dec 1, 2016
1521 posts
1540 upvotes
BrianWS6 wrote: VOO is the best choice because it has the lowest MER (along with VTI) and no exposure to mid-cap or small-cap stocks. The S&P 500 has outperformed all others over the long haul.
I personally invest in VTI but VOO is not a bad choice. VOO companies are large part of VTI anyways (some dont realize how big these 500 are). Returns are pretty much the same in the long term, with slight advantages of one over the other in some decades (see pictures).
vti.jpg
vti_voo.jpg
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Jun 15, 2012
1052 posts
239 upvotes
Toronto
Sorry for the dumb question, but to invest in VTI do I have to do so in USD?
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Dec 1, 2016
1521 posts
1540 upvotes
PercyJones wrote: Sorry for the dumb question, but to invest in VTI do I have to do so in USD?
Yes, also best to do in an RRSP Account, here is why:

In an RRSP, using US-listed ETFs for foreign equity holdings can bring a significant tax advantage. That’s because these securities are exempt from the usual 15% withholding tax on dividends imposed by the US government.

https://www.pwlcapital.com/wp-content/u ... linked.pdf
Member
Jun 2, 2020
311 posts
282 upvotes
V5y1v1
JimboD wrote: Looking for one for an RESP account. Kiddo is only 2 months, so got a long time to go. I was thinking VGRO? Suggestions?
Congrats on the kid. I'm in the same spot myself (7 mo). I decided to set up a DRIP and go with VGRO for the first few years. Assuming interest rates increase I will then buy a combination of VBAL and VCNS gradually over time to up the % bonds. If the rates don't increase then I'll likely just keep with VGRO.
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Jun 15, 2012
1052 posts
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Toronto
Bubblegum86 wrote: Yes, also best to do in an RRSP Account, here is why:

In an RRSP, using US-listed ETFs for foreign equity holdings can bring a significant tax advantage. That’s because these securities are exempt from the usual 15% withholding tax on dividends imposed by the US government.

https://www.pwlcapital.com/wp-content/u ... linked.pdf
Is there a Canadian equivalent , where I wouldn’t have to exchange my money?

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