RY vs BMO for RESP

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I recently liquidated the mutual funds for my toddler daughter’s RESP , and wish to take positions in Equity and low cost index ETF like XIC, VFV.
For the equity portions, RY is featured under foundational while BMO under Bull. Since both stocks are $3 of each other, which one would you recommend ?

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Asked on April 13, 2021 1:52 pm
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Private answer

Keep in mind, stock price has little do to with the quality, or size of a company.

For example, Royal Bank is a $166.91 billion dollar company, while BMO is a $73.66 billion dollar company.

Despite having relatively the same stock price, Royal is more than twice the size of Bank of Montreal. This is because of the shares outstanding of each bank. Total market capitalization value of a company is shares outstanding multiplied by stock price.

To be honest, either of them make strong cases for long term positions in a portfolio. Royal Bank is larger, with a more international presence which is why it is a Foundational Stock, but BMO is still one of the strongest financial stocks in the country.

Keep in mind as well, this is far from a one or the other situation. In fact, I own both. I own RY, BMO and TD in my portfolio.

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Posted by Dan Kent
Answered on April 13, 2021 2:49 pm
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