A client of mine asked me what I would invest in, if I had $100,000 given to me. I think that is a great question, but whether the amount is $100, $1000, or $100,000 it would all be percentage based. Now I am not a professional investor and I lean quite heavily to be risk averse, so if you are more risky I recommend not following this advice, but here is how I would break it down.
35% (XUU) U.S Total Market Index ETF - Focused on the entire US market as a whole. Dividend yield of 0.97%. Traded in CAD. Management Fee 0.07%
Once again this is just my personal opinion, this is not professional advice. There are risks with investing in an ETF or anything involving the stock market. I recommend doing your own research so you feel comfortable with what you have invested your hard earned money.
I like trading in Canada dollars since I am located in Canada and I can skip the 2.5% conversion fees. ETFs (exchange-traded funds) have very low fees compared to mutual funds which once again helps you retain more value when investing. Especially since you should be investing for many years.
25% (VCN) Canada Total Market Index ETF - Focused on the entire Canada market as a whole. Dividend yield of 2.41%. Traded in CAD. Management Fee 0.05%
5% (ETH) Crypto Stock - Ethereum is less energy demanding vs Bitcoin but it is still quite risky so it is only a small portion of my portfolio. Up to 2.7% "dividend" yield from staking. Traded in CAD. 2% Trading Fee.
15% (XEF) iShares Core MSCI Emerging Market Index ETF - Focuses on other parts of the world other than the US. Dividend yield of 2.55%. Traded in CAD. Management Fee 0.20%
15% (VEF) Vanguard FTSE Dev All Cap ex U.S. Idx ETF - Developed markets outside U.S. & Canada (Europe, Japan, Australia, etc.) Dividend yield of 2.19%. Traded in CAD. Management Fee 0.22%
5% (ETH) Crypto Stock - Ethereum is less energy demanding vs Bitcoin but it is still quite risky so it is only a small portion of my portfolio. Up to 2.7% "dividend" yield from staking. Traded in CAD. 2% Trading Fee.
15% (XEF) iShares Core MSCI Emerging Market Index ETF - Focuses on other parts of the world other than the US. Dividend yield of 2.55%. Traded in CAD. Management Fee 0.20%
15% (VEF) Vanguard FTSE Dev All Cap ex U.S. Idx ETF - Developed markets outside U.S. & Canada (Europe, Japan, Australia, etc.) Dividend yield of 2.19%. Traded in CAD. Management Fee 0.22%
5% (XEC) iShares Core MSCI Emerging Markets IMI Index ETF - This index encompasses large-, mid-, and small-cap stocks across 26 emerging markets, representing approximately 99% of the total market capitalization in each country. Dividend yield of 2.20%. Traded in CAD. Management Fee 0.30%
Or
100% (XEQT) iShares Core Equity ETF Portfolio - Another way of buying most of the above ETF in one convenient ETF is XEQT which is roughly
Approximate Allocation:
- U.S. equities: ~46%
- International equities (Europe/Asia-Pacific): ~27%
- Canadian equities: ~23%
- Emerging markets: ~4%
Benefits:
- Diversification: Exposure to thousands of companies worldwide.
- Convenience: One ETF, rebalanced automatically by BlackRock.
- Simplicity: Great for long-term “buy and hold” investors who want growth.
- Cheap fees: 0.20% MER is lower than most mutual funds.
Once again this is just my personal opinion, this is not professional advice. There are risks with investing in an ETF or anything involving the stock market. I recommend doing your own research so you feel comfortable with what you have invested your hard earned money.
I like trading in Canada dollars since I am located in Canada and I can skip the 2.5% conversion fees. ETFs (exchange-traded funds) have very low fees compared to mutual funds which once again helps you retain more value when investing. Especially since you should be investing for many years.
Hopefully you found this insightful, if you would like help budgeting or investing please email me at TaylorMckeeCoaching@gmail.com
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