What is an index ETF?

An index ETF is an exchange-traded fund that tracks a market index, such as the S&P 500 in the U.S. or the S&P/TSX 60 in Canada. For example, if you buy an ETF that tracks the U.S. S&P 500 index, you own a small portion of the 500 largest U.S. companies.

What's an all-in-one ETF?

An all-in-one ETF, also known as an asset allocation ETF, is an exchange-traded fund composed of several ETFs. They generally comprise a mix of equities, bonds and cash, depending on the risk profile chosen. These ETFs offer a number of advantages, including diversification, automatic rebalancing, low management fees and a simplified investment strategy.

What's the best ETF for a TFSA?

The best ETF for a TFSA depends on a number of factors, such as your financial goals, investment horizon and risk tolerance. If you're saving in a TFSA for a travel project, you may want to consider a conservative or cautious asset allocation ETF, since capital protection is essential. Conversely, if you're investing in a TFSA with a long-term horizon, you may want to select a more aggressive asset allocation ETF.

What's the best ETF for an RRSP?

The best ETF for an RRSP depends on a number of factors, such as your investment horizon and risk tolerance. If you're on the cusp of retirement, a conservative asset allocation ETF or a monthly income ETF could be a good solution. Conversely, if you have one or more decades before retirement, you may want to consider growth or aggressive asset allocation ETFs.

Vincent Morin

My name is Vincent and I've been a stay-at-home parent to two young boys since achieving financial independence in 2021 (FIRE). Previously, I worked for 12 years in financial technology for a major US investment bank (G-SIB). I'm passionate about personal finance, stock market investing, reading, writing, cycling and gardening. I'm also the founder of Retraite 101, a personal finance blog followed by over 30,000 people on social networks and quoted in several media, blogs and finance books. Despite early retirement, I continue to write about personal finance to share my passion with Quebecers and motivate them to take charge of their finances.

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