The best etfs how to save lots of money fast in canada for young canadian investors (2019)

One of the great ETF revelations occurred several years ago how to save lots of money fast when vanguard and ishares introduced their all-world ex canada etfs. What that means is that for the first time, canadian investors could build exposure to every global market (minus canada) with just one fund. Before the advent of these all-world funds, investors needed a minimum of four-five funds to construct a proper globally diversified portfolio containing how to save lots of money fast canadian, U.S., international, and emerging markets.

IShares’ XAW stands out ahead of vanguard’s VXC due to its lower cost (0.22%) and more tax efficient structure. It’s complicated but, in a nutshell, canadian investors are subject to foreign withholding tax on dividends, adding another 30 to 40 basis points to the cost how to save lots of money fast of these etfs. XAW is a “fund-of-funds”, with its underlying holdings made up of other U.S.-listed ishares etfs. The one exception is that it gets its developed market how to save lots of money fast exposure from XEF – a canadian-listed ETF that holds its underlying stocks directly – making XAW slightly more tax efficient than its main competition how to save lots of money fast VXC.

For DIY investors, you’ll want to open a discount brokerage account. The lowest cost option is at questrade, where you can purchase etfs for free and there are how to save lots of money fast no annual fees no matter what your account size. Their other trading fees range from $4.95 to $9.95, and their account minimum is $1,000. If you transfer your rrsps or tfsas from another institution, questrade will cover your transfer fees. See our full questrade review for all the nitty-gritty details.

From there you’ll want to select your ETF, or portfolio of etfs, by entering the ticker symbol(s) and purchasing the appropriate number of units. Unless you hold an all-in-one balanced ETF, you’ll need to do your own portfolio rebalancing. Decide on some rules. Let’s say your target allocation is 33% canadian, 33% U.S., 33% international. You can either rebalance whenever you add new money by how to save lots of money fast contributing to the fund that is lagging behind. Or you can rebalance once or twice a year by how to save lots of money fast selling some of the top performing fund and buying more how to save lots of money fast of the fund with the poorest returns. Buy low, sell high. That’s the name of the game.

For investors looking for some hand-holding through the process but who still want to save how to save lots of money fast on fees, a robo-advisor is worth a look. Robo-advisors, or digital advisors, allow investors to build a portfolio of low-cost etfs and will automatically rebalance your portfolio as you how to save lots of money fast add new money or whenever your portfolio drifts away from how to save lots of money fast its target allocation. Most robo advisors charge a management fee of around 0.40 – 0.50% to monitor your portfolio.

Nice list. Just wondering why you went for XIU vs XIC? The latter has a lower MER, higher yield, and lower portfolio turnover. I debated back and forth in the past, but the numbers just seemed a hair better for XIC. As you argue for VTI it’s important to have broad exposure to the whole market, and not just the S&P 500. To me, picking stocks based on market cap seems rather arbitrary. Also, why 60 and not 65 or 100 or 30? I’m sure there was some logic behind that number when how to save lots of money fast the ETF was created, but basing success based on market cap alone seems a how to save lots of money fast bit too simplistic. In any case, the performance of both is very similar, just curious about your logic for preferring XIU.

In terms of VUN vs VTI, from what I’ve read if you make smaller more frequent contributions, VUN is probably the better choice, since the forex fees will eat you alive otherwise. For VTI, if you’re doing bigger lump sums (>$10k at a time) your best bet is to do norbit’s gambit to minimize forex fees. Depending on your portfolio, VUN might also be a good option if you’re trying to avoid the extra CRA paper work for how to save lots of money fast having >$100k in foreign assets. To my knowledge, a canadian listed ETF regardless of holdings wouldn’t trigger that requirement. There’s also the issue of considering what account you hold how to save lots of money fast these in. VTI is a better choice for rrsps since the distributions how to save lots of money fast won’t be taxed as long as it’s in the account.

I have a questrade account with ETF’s mix of vanguard & ishares & some company stock from my former employer. All doing pretty well with good + % returns except for ishares CBO (I have some XBB so may sell the CBO & add to my XBB holdings which are doing better) which has been a dud & some stock in redknee which I’ll sit on until it comes back (if ever), not a huge issue. Live & learn. About $53,000 in investments there. Sunlife fund from DC about $16,500 that is low MER for actively managed fund through how to save lots of money fast group work plan so I left it for now in how to save lots of money fast one med-high risk equity fund. About $24,000 in TD E-series & small bit in TFSA GIC. My question (s) is this; wondering whether to buy 10-20 individual dividend income stocks (bank stocks, utilities, reit’s & blue chip/other) with my pension funds or keep it simple

And buy 1-4 ETF’s to add to my already (my picks from reading various couch potato strategies were VCN, VUN, VAB, & possibly VDU) but suggestions seem to change so often! Even though I am fairly close to retirement I want how to save lots of money fast a limited amount in fixed income funds only because I how to save lots of money fast want a higher rate of return, if possible & have an investment horizon of hopefully 30 + years still. I may only hold ultimately about 20% of my portfolio in fixed income (maybe 25% & that may climb higher as I get older). I will be coming into some additional money to invest how to save lots of money fast (about $100,000) so I can max out my TFSA to the tune how to save lots of money fast of $50,000 which I haven’t to this point) pay off a little debt and have another $40,000 to invest in non-registered account/top up very small amount of unused RRSP room. Does it make sense to buy shortest term laddered GIC’s in that non-registered account? & any suggestions for the TFSA investments? All toled I should have about $260,000 invested before any additional savings over the next 10

Canada is the end of a toothpick in the total how to save lots of money fast picture of markets – therefor the main rational for investing in canada has to how to save lots of money fast be the dividend tax credit in a non – registered account (puting aside the witholding tx thing from USA investments in how to save lots of money fast TFSA (altho british stocks and maybe other countries so not have how to save lots of money fast such)and no other reason; so the question kyle is R u touting a canadian how to save lots of money fast dividend etf for non-registred equity or do u believe as i do for how to save lots of money fast now that there is no way that such an etf how to save lots of money fast can give one the same tax enhancement that the higher how to save lots of money fast dividend blue chip individual stocks can and one should continue how to save lots of money fast with this method almost exclusively in non-registered? (also in long run the gross up methodolgy of dividend how to save lots of money fast stock of 20% can bring claw back in government OAS payments if one how to save lots of money fast lives long enuf and grows an account high enough – any comment here and should one even concern about oas how to save lots of money fast clawbacks if making great dividend income from non-reg rather than going through manipulations to keep it down how to save lots of money fast below the approx $70,000 per year)? Thks for your opinions

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