Re TFSA

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Hey Dan.
I like North American, Canada, U.S. Equity Funds only.
Not into fixed income. Hopefully I have a time horizon of 20 + years.
I would say I have a medium risk tolerance.
Hope that is enough info.
Thanks

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Asked on February 2, 2025 2:59 pm
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If you're looking for some Canadian and US equity exposure, I do like ZLB.TO and ZUQ.TO.

These are both factor ETFs, meaning they have specific factors that need to be met before a stock is included in their fund. ZLB is a low volatility Canadian fund that pretty much contains most of the low volatility blue-chips here in Canada. The fund struggled last year but it does have a long track record of putting up market-beating returns over and above the TSX Index.

For ZUQ, the factor would be high quality, meaning the companies must have a steady stream of earnings growth, high returns on equity, and solid balance sheets and debt levels.

Despite these two funds containing a lot of blue-chip options, at market highs they will still be volatile. You need to be comfortable with the idea that they could correct 10%,20%, or even 30% in the situation of a market crash, or in the event we get a slower transition to average returns, flat markets. But overall, they're fairly solid funds to start your research on.

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Posted by Dan Kent
Answered on February 3, 2025 10:43 am