I understand this is a BMO-sponsored video, but honestly this is far less efficient than just buying XEQT and maybe 1 more fund like VFV if you want to increase American exposure. Always appreciate your content regardless!
All in one ETFs are a GREAT option for hands-off investors! But you lose the customization and tax efficiency. I would rather separate those underlying ETFs but at the end of the day, it's a personal preference =)
I’ve been looking for a specific video talking about BMO ETFs and this one just explained everything I needed. People criticizing it just because it is a sponsored video didn’t understand the intente here.
I'm glad you found it helpful! It is disappointing but it would be a different story if I "lied" and hid the fact that this was sponsored... I don't think I could have been any more clear that this was a partnership so I'm not sure why people are so angry? I guess this is 2024 lol
I just started investing a few months ago and you are one of the few creators I trust 100%. You are just presenting options here and not pushing anything to anyone or selling courses. You’re doing a great job man!
Thank you for those kind words and I'm so proud that my videos helped you get started! I truly appreciate the trust you place in me but I'll say this again, NEVER blindly trust anyone online, including me! Listen to what I have to say and understand my logic but it's always up to you to make your own decisions that fit your goals 😊
Hi, I’m a new subscriber from Canada! I recently discovered your videos and subscribed to your channel after watching a few. Thanks to your content, I’ve made some adjustments to my investment portfolio. What I really appreciate is how direct and no-nonsense your approach is-you don’t waste time with unnecessary fluff. Keep up the great work!
I am seeing a lot of complaints about this sponsorship, not sure why. You are letting us know about things we can research ourselves and invest in, just like you usually do... Maybe comparing these BMO ETFs with the iShares and Vanguard equivalents would give a fuller picture? Talk about the fees, performance, drip etc between ETFs with similar holdings
Thank you for understanding, I'm with you and I am trying to be as upfront as candid as I can. By no means am I "hiding" the fact that this was sponsored, I literally disclose it in the first 30 seconds. But again, this is important: these are entirely my words and my honest thoughts! I would NEVER do a sponsorship where they give me a script and tell me what to say or make me say something I disagree with. I would never sell anything dishonest to you guys, no paycheque is worth that
And you bet I absolutely will be making more videos where I compare ETFs from all providers (Blackrock and Vanguard) but it wouldn't be fair to do so in a sponsored video. It's not quite a fair comparison when I'm being paid by one of the "contestants" 😉
@@CanadianTShirt If the sponsorship agreement lets you talk about other ETFs than just BMO products, I think it would be totally fair. Show what areas BMO leads in, with numbers to back it up. And where they fall short, put their feet to the fire. Highlight where they can do better. Puts pressure on them to improve, which gives investors (us audience members hopefully) better products.
Great video! I personally hold ZSP, XUU, and HXQ. Might start looking into these alternatives. I do have some overlap in my three etfs, but it has done great for me so far. I don't mind that this is sponsored by BMO. These are great products. Don't listen to the haters. I am happy you are only getting sponsors you believe in and not random ones. Keep up the great videos!
And thank you for the kind words. Frankly, I am a little taken back by how negative some of the comments have been... especially from long time viewers who I have helped and built a relationship with over many years... I mean I've made countless videos where I talk about BMO ETFs that I love for free (including Vanguard and Blackrock ones) so I'm not sure why it's such a "betrayal" that I'm getting paid this time 🤷♂️
I just hope that most viewers appreciate how selective I am with choosing sponsorships. I've been on TH-cam almost 6 years now and only done a total of 3 sponsorships. And I don't sell a course. In fact I turn down dozens of paid partnerships on a daily basis because I don't want to sell crap to my audience. Anyway I'm trying to focus on the positive and the vast majority of you guys are absolutely lovely and supportive and I couldn't be me grateful to have you in this community! 😊
I usually love your videos but for this one, the content loses so much credibility by being BMO sponsored and then having you push their funds... Thats not a great way to do content videos imo.
I'm sorry you feel that way but I've been running this TH-cam channel for almost 6 years. In that time, I've done a grand total of 3 sponsorships. I am EXTREMELY selective with who I choose to work with. I ONLY promote products and services that I personally use and recommend to my family and friends
In regards to BMO ETFs, I've been talking about their ETFs for over 5 years, totally for free! And all of these ETFs are ones that I personally invest in so I don't see any problem with being paid to do the same thing I've always done
If you can't stand sponsored videos, here's my advice. If you see the "paid partnership" popup or you see the #ad disclaimer or you hear my disclose the sponsorship in the first 30 seconds, just click away. For everyone else, let me be clear: these are entirely my words and my opinions. I would NEVER let a sponsor hand me a script and I would NEVER say something I didn't believe in or promote something I don't personally use or find value in
Hello Adrian: I very much enjoyed this video. Thank you! I'm in Nova Scotia. I also have money in BMO Retirement Balanced Portfolio Series A, a mutual fund, and add to it monthly automatically and have done so over the years. Keep up the great work, Adrian.
If you're happy with it, great! But generally speaking, mutual funds charge significantly higher management fees where you can essentially replicate the same portfolio with a handful of ETFs for a lower cost!
Ouch.... that's definitely way too high for me... My suggestion is to look at the portfolio breakdown (which countries it's invested in, which industries and which individual companies) and I'm sure you could replicate a similar portfolio with the 6 ETFs in this video. And all of which will have a fraction of that MER =)
@@CanadianTShirt Thank you again for responding, Adrian. I will listen to your video again and make some changes to my portfolio. Thank you sincerely, Adrian! I've got some work to do.
I just watched an older video of yours where you recommended XIC, VDY, XEI, and VRE. Do you still recommend those or are your saying to go with these BMO ones instead? Or would you get all of them? Would that many different ETFs be necessary? Sure there is no commission when buying but isn't there a commission if you one day sell?
If you use Wealthsimple, no commission to buy or sell ETFs in Canadian dollars. For QT, yes no commission to buy and only $5 to sell. Generally speaking, you will buy in small steps and sell in one big step so $5 shouldn't matter too much at that point 😊
Great Scott! Thanks Adrian for the information. Loving the Superman, no glasses eye sight. No longer Clark Kent. Much continued success in your investing adventures.
Thank you Natalie for those kind words! I'm glad that my lessons have been helpful but you deserve the credit for taking that first step and taking charge of your financial future! 🙌
I have a whole playlist called the MILLENNIAL INVESTING Guide which I think you'll find helpful! =) th-cam.com/play/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g.html
It depends on your age and investing goals! Personally I have a TINY bit of exposure in bond ETFs like ZAG and ZFL but bonds are not a priority at my stage in life
If I was getting closer to retirement, then absolutely I would have more exposure into bond ETFs for that lower volatility and reliable cash flow. But for long term investing, 10+ years I focus on equity based ETFs =)
@@CanadianTShirt Question: I'm early 50's and want to keep investing for at least another 20+ years. 85% of my portfolio is XGRO. I'm starting the new year by investing more into VFV & XEQT. Is this ok? I'm wanting more of my portfolio with all stocks and less bonds. So, instead of selling all or part of my XGRO shares, I'm planning on topping up my other ETF's.... thanks
In your video explaining Norbert's Gambit, you said you'd rather hold US stocks directly and not pay 15% foreign withholding tax than doing what you said above. What changed after that? Why did you move back to Canadian ETFs that hold US stocks? Or is this for your TFSA and you're still holding US stocks in your RRSP?
You got it! In the RRSP, I keep all my US investments in USD to avoid that 15% withholding tax on dividends! Outside of the RRSP, you can't avoid it so it's fine to hold CAD ETFs with foreign holdings
This is one of those tax planning strategies I discussed at the end, why I avoid the all-in-one ETFs like ZEQT. I prefer to customize it to maximize the tax benefits of each account type =)
Just make sure you have US exposure and international exposure as well! I made the mistake of ignoring foreign markets for a few years when I first got started investing!
Hey Adrian, I'm looking for the spreadsheet that you've shown in another video 😅. Did you make it, or did you take it from somewhere else? Also, I was wondering how the spreadsheet works when you purchase the same share but at different prices (because it was purchased at different times of the year, for example). Thank you!
You bet! I include the link in most of my videos, it's free to download! You'll find it under this video DRIPs Explained that's where I also break down the template and what each column means =) th-cam.com/video/ouyXwaTOfhU/w-d-xo.html
Hi Adrian always happy to see a video in my feed from you it’s always a must watch! Immediately 😂I’m wondering about your thoughts on high dividend covered call etf’s
It's not something I'm into.... the management fees are usually pretty high, worse than some mutual funds even. And yes the massive dividend yields are tempting but you are losing any hope of capital gains and a lot of the time you will see a loss in value over time...
Especially if you are focusing on long term growth, over the course of years or decades! But if you are looking for a short term, income focused asset, then they can work but it's not for me =)
On the topic of dividends, do you still invest in XEI? I remember you had recommended that a number of years back. I recently got rid of it in my portfolio in favour of the more diversified VCN and VCE, where you still get dividends but better Appreciation over the long run. XEI is great if you like a monthly dividend, but the capital appreciation isn’t great, which is why I decided to return to just sticking with the more broad indexes, apart from a couple value factor ETFs and REITs.
Just a question Where should I hold my tfsa and rrsp I mean should I hold it in questrade or Wealthsimple Which is better I want to split my investments so that’s why I wanted to ask you
I have several videos comparing both brokerages, here is the latest one focusing on WS vs Questrade all about US investing! =) th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
You can absolutely split your portfolio and use both brokerages, I do! But long story short, WS is fantastic but only for CAD investing! For US investing, they are very expensive with their conversion fees. That's why I use Questrade and Moomoo for my US investing =)
Yes any CAD ETF that contains US holdings will face the same withholding tax on those dividends. You will see this on the BMO website when you look at the distribution breakdown =)
Thank you, your video really helps a lot. I bought ETFs based on your recommendations. Is there any CAD ETF for AI industry, do you recommand to invest in such area at this time.
Instead if you want to focus on the US tech sector (major AI players) you can look at the Nasdaq 100, they are mostly the big tech companies like Nvidia, Apple, etc. ZQQ would be a good one for that in CAD =)
I am fan of your content and had learn a lot. Please share more videos for public which are not sponsored. You post very rarely and when you do its just sponsored this days and its not the best content I have seen. Please post more often. We expect atleast once a week. 😁
I appreciate your feedback but I gotta push back here. I've only done 2 sponsored videos in 4 months. Ya I double checked and before last week, the last sponsored video I did was in early July.... so it's been several months of public, organic vids. Ideally I didn't want to make two sponsored videos back to back (Moomoo one and then this BMO one) but when it comes to sponsorships, the timing is often out of my control. Getting approval and compliance from their legal team for example can take weeks and even months sometimes
But I hear you and don't worry, I totally agree. My goal is to spread out sponsorships and hopefully only do one every 2 or 3 months but due to compliance delays, I was forced to launch these back to back
But on your second point, I definitely cannot post one video each week. I am a one man show. I don't have a team, I don't have employees or an editor. I do everything on my own and I spend a TON of time responding to comments every day and planning out each video. I always believe in quality over quantity
To manage your expectations, I am aiming for one video every 2 weeks. Plus a members-only video in between as well as Blossom blog posts and Instagram reels in between. But I will not commit to more than that. Believe me, all I do is work and especially as I get older, I can't keep burning the candle at both ends. I am working on more balance in my life so long story short, no you should not expect one video a week. That's not happening 🙂
@@CanadianTShirt thanks for letting us know. People love you and love your content and want to learn more from you. Consider people’s comment as love towards you 🎉🎉
Thank you for this video! Would it make sense to buy some ZSP and hold mainly ZEQT to increase exposure to S&P500 above and beyond ZEQT. Is this duplication not advised? Thank you
I have a ton of overlap between my various ETFs, and that's totally fine! Just as long as you understand that your true exposure may be higher than you think because you are double dipping in certain sectors =)
Well VGRO is actually pretty similar to ZEQT which I cover at the end of the video, it's an all-in-one ETF. So it's just a collection of a few ETFs (but Vanguard ones not BMO lol)
Again for me, I personally prefer having total control and customizing my portfolio, mainly for tax efficiency. So I prefer separating my US ETFs from my Canadian ETFs etc. With something like VGRO or ZEQT, they're all bundled together. So it's simpler no question, but not necessarily as optimized. It's a personal preference at the end of the day =)
About US ETFs and tax efficiency, it’s only if it’s a US listed ETF like VTI or VOO that it’s more tax efficient inside of a registered plan such as an RSP or RIF. IF YOU HOLD A CANADIAN DOLLAR LISTED US ETF, YOU’RE STILL GETTING THE 15% WITHHOLDING TAX BECAUSE THE TREATY BETWEEN CANADA AND THE US DOES NOT APPLY TO CANADIAN LISTED ETFS . still, this is a good overview for beginners new to index investing. I’ve been doing it for years, so like you I prefer individual ETFs but I prefer Vanguard over BMO, although I do hold ZMMK and ZST. That being said, according to PDL capital and Justin Bender who are also big Canadian indexers in the TH-cam and podcast space, it’s only worth buying US listed ETFs when your portfolio is quite large. For those starting out or with smaller portfolios, Canadian listed ETFs are just fine.
The only way you will save the withholding tax with an RRSP is if you hold the USD version of those ETFs! I have a whole video breaking down this important point =) th-cam.com/video/JqZDb3gVqu8/w-d-xo.html
This raises another question for me: what makes you decide to hold an ETF in CDN vs US? What's the advantage of these being CDN instead of US versions?
@@LIFTwindsor there is a treaty between Canada and the US, where US based ETFs such as VTI and VOO do not have the 15% withholding tax when held inside of a registered plan such as an RSP or an RIF, But for those just starting out or with smaller portfolios, you are fine listing in the Canadian based ETFs that invest in the US market. It’s once your portfolio gets into the six digits that you are better off investing in US ETF inside of your RSP or RIF. also, the 15% withholding tax for US-based ETFs Is still taken inside of a TFSA or RDSP, so for those you might as well just invest in the Canadian based ETFs.
Vanguard and Blackrock will offer similar versions to these ETFs although BMO has some specialized ETFs that I haven't seen anywhere. It's the Canadian advantage 😊
How do I switch my BMO dividend stocks to reinvest in the stock to create a drip , instead of them paying me in cash , I've look all over investorline Thank you for your help . great video's have learned so much
Adrian thank you for all the information about canadian investing. I have been trying to understand the value of rrsp investing. So far i don't understand it. I want to invest in some American stocks and i believe it is more valuable to do this in my tfsa. I understand the belief is rrsp for American dividend stocks so that as a canadian i won't lose the 15 to 20% from withhold tax. However, the income tax i would pay when i with draw money from the rrsp, along with what i understand as a 10% withhold fee that comes with a withdrawal from my rrsp is a total of at least 25%. This leads me to believe i am better to pay the US withholding tax up font because it is less. I am new to all of this and trying my best. I am happy to learn what is actually happening. I welcome a clearer understanding of rrsp investing.
I'm glad my videos have been helpful and don't worry it certainly can be confusing! Here's the bottom line, US dividends are more tax efficient in an RRSP than a TFSA. BUT that should NOT be the reason you open an RRSP!
The TFSA is good for everyone! There are no downsides. The RRSP can be even better for some people but it doesn't work for everyone. So you have to understand how the RRSP works, with your current income, tax brackets, expected retirement income etc. If the RRSP is the right choice, then you should open one and hold US dividends inside it
And to clarify one of your points. The witholding tax on RRSP withdrawals is NOT an extra tax! It's like a pre-payment of the total tax you will pay. It's done that way so that you're not surprised at the end of the year with a giant tax bill. Make sure you watch my entire RRSP GUIDE to understand these important rules! th-cam.com/play/PLj8bU3AuW2qHOikk4VRpSDXCZTuH7eUhz.html
I recently started invested and am planning to buy and hold. I currently have XIC, VUN, XEF and XEC in my TFSA and FHSA. Would love to know your thoughts on these index funds. Just starting out makes me nervous!
Hi there, fellow Canadian here. I love your videos! Question- I’m about to create a quest trade account using your link and I would like to know why you recommend that we use wealth simple for Canada trading and QT for US trading. My question is why not use QT for all trades, Canada included? I watched your video where you compare the 2 but I am not clear on the advantages of WS for Canadian. Thanks!! Conrad
Overall Questrade is my favourite platform and I use it for all my investing: both CAD and USD. But from a purely cost perspective, WS is cheaper for Canadian investing. For USD, it's not even close, Questrade is WAY cheaper!
Now when it comes to actual features, I still think Questrade wins out over WS. But there are certain features that WS offers that Questrade doesn't. So when it comes to CAD investing, it's a bit more of an even match. I'll break this down in part 2 of my comparison video! =)
If you are going to use a registered retirement account like the RRIF or the RRSP, I suggest going for VOO instead of VFV! I have a whole video breaking down those benefits! =) th-cam.com/video/IlSEg6Fux_A/w-d-xo.html
Great info. Is it a bad idea from a risk standpoint to go all in on XEQT? Id prefer not too rebalance. I have a thought of buying both XEQT and ZSP (im aware of the cross over) better for risk?
XEQT is very very similar to ZEQT. It's a great all-in-one solution. As I covered at the end of the video, I prefer to customize it myself rather than have an all-in-one bundle but it's certainly not a bad move!
I don't understand the hate over this video being BMO sponsored. Much of the knowledge given here can be applied to most ETF's, regardless of who manages it. The fees may differ and the companies within similar funds by other agencies may differ slightly, but if you understand how ETF's work, you can apply this knowledge to deciding what ETF's to own. I put all my CAD stocks and ETF's into my TFSA and USD stocks and ETF's into an RRSP These are mostly buy and hold investments. Occasionally, I may sell something when the value gets high then either keep the cash on the sidelines. Usually the plan is to wait fir the same stock to dip below my sell price, but sometimes I invest it elsewhere if it keeps climbing or the dip was not low enough.
Thank you for those words of support! I couldn't agree more! And I have been speaking about BMO ETFs as well as Vanguard and Blackrock ETFs for literally 6 years here on TH-cam! It wasn't a problem then and I don't get why people have a problem now....
I am extremely selective with who I work with and I would only ever endorse investments that I personally own and believe in. But this is the world in 2024... a certain group of people just love to be outraged 🤷♂️
@CanadianTShirt yeah, sometimes I'm tempted to cash in on elevated stock prices and sell stock even if they pay small dividends, but then I just end up holding out for a correction and buying the dip. I have a few stocks that are up 45% in just a few months. What baffles me is my Marinuana stocks. This particular company I bought shares of when I started investing seems to be on a continuous down trend. Despite reporting increased profits for 5 consecutive years, expanding their business continually, joint ventures with larger companies in related fields, and buying out their direct competitors and becoming one kf the largest legal canabis producers in Canada.. All these things look to me like a company whose stock price should be rising, but they're on a 5 year down trend. They get the occasional uptick when their quarterly reports come out but shortly after, continue to drop. I'm tempted to start buying them again so I can dollar cost average down near the current price, then unload when it jumps up again. 😂
That's because when weed stocks came out, they were overhyped and overvalued to such an extreme degree! So even though they are profitable now, they still can't compete with those insane valuations from years ago! That's why I never touch IPOs or penny stocks, they are propped up by so much hype rather than fundamental value!
Adrian you sound different this episode? Like your skimming through the different ETFs and not giving a good pro and con outlook on each of them. Normally your pretty good at this. Oh, never mind the last 17 seconds explained why.
If I spent 5 minutes on each ETF, this video would be half an hour long... but I hope I gave you enough of the highlights to showcase each ETF and what sector of the market they cover. I can certainly do a deeper dive into each fund if you like as well
Also consider that I'm not saying "you should choose this ETF vs this one" Instead, I am saying that you should do a mix of ALL of them! Since they don't overlap each other, you need Canadian exposure plus US exposure plus international!
Generally speaking I go for the unhedged versions. One, the less work involved the lower the management fees. And two, I view currency exchange rates as another form of diversification. I like having USD. Sometimes the FX rate helps me, sometimes it hurts but I don't want to always be tied down to a single currency
Thanks Adrian, I reviewed that video again, this time I am awared of that 15% tax of dividents for Canadian ETF hoding US stocks. So I changed my mind to go VOO instead of ZUE/ZSP as I am using RRSP account. 😊😊
Hey Adrian! Grateful for all this information as always, thank you :) Quick question - I understand that it is better to hold US ETFs in the RRSP as we can avoid the withholding taxes. Which account would you suggest for holding international ETFs?
Unless you are investing in a US-based international ETF, it doesn’t matter, because there is no treaty with any other countries other than the US, in terms of international ETFs. For example, for the emerging markets ETF, VEE, which is Canadian based, you are better off investing in VWO which is the same ETF but is US based, if investing inside of an RSP or RIF, to avoid the 15% withholding tax. VEE actually invests in VWO, so it’s an ETF holding an ETF, but because VEE is Canadian based, the 15% withholding tax is taken whether inside of an RSP or not. if you hold VWO inside of an RSP, the 15% withholding tax does not apply, so you will just have the withholding tax for the international countries but not the US. Put really simply, a Canadian based ETF like VEE is not tax efficient because it has two layers of withholding tax, whereas VWO would just have the one layer of withholding tax when held inside of an RSP. On the other hand, the broad-based international ETFVIU is tax efficient because Vanguard restructured it a number of years back to directly invest into the international stocks, so there is only one layer of international tax on VIU, and since there is no tax treaty with any of the other countries outside the US, it’s OK to hold VIU in either a registered or non-registered account. fellow Canadian Justin Bender has some really good videos explaining this much better than I ever could.
Excellent explanation! Yes she is absolutely correct. Unfortunately, the US is the only country where we have a tax treaty to waive withholding taxes on that foreign income. So no matter what, you will pay those withholding taxes. Personally, I hold these foreign ETFs in my non-registered account since the dividends are quite small anyway. It's mostly capital gains which is the most tax efficient form of income. I can make a video breaking down international taxation if you guys are interested =)
I have a WHOLE video breaking down the different ways to invest in USD and the costs. I prefer to use Norbert's Gambit to avoid this conversion fee! Check out the video here =) th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
BMO have some of the best canadian ETFs. I understand and approuve you accepting their sponsorship. However, I suppose your content can me more informative when you can compare and contrast ETFs form different ETF providers "freely". That being sad, all you said about BMO ETF is honest and accurate! So don't worry if you accepting sponsorship bother some people. Just don't let them change the awsome nature of your independent content!
Oh absolutely! And don't you worry, I will definitely be making more videos comparing various ETFs, including Vanguard, Blackrock and BMO. But obviously, I can't do a comparison video where I'm being paid by one of the "contestants" 😉
My rule from day one has always been the same, I am extremely selective with who I work with and I will ONLY ever work with companies that I personally use and recommend whole heartedly. I will never take on a sponsorship where they tell me what to say, where they give me a script or they make me sell something that I disagree with. My honesty and sincerity is the most important thing for me and my channel and I would NEVER sell that for any amount of money. And the BMO team understands that, that's why I agree to work with them 😊
I have a question bro Suppose am doing a sip in etfs using questrade as etfs buying are free in it and on selling will i be only charged 4.95$ on the full order as am investing in one etf only ( means i can sell all the share just giving the brokerage once) if am investing in 2to3 etfs??❤❤
Hi I wasn't quite clear on the question... but yes that's a solid strategy. Use Questrade to buy ETFs (even just one or 2 shares since you don't pay commissions) and when you eventually do sell, then you sell a large amount so that you only pay that $5 fee once =)
The biggest chunk by far are the Canadian and US market ETFs! Then the international ones make up around 10% exposure. Then the mid caps and small caps are a tiny portion
I personally don't invest in their funds. I know they're popular but they don't fit my goals, generally. I stick with broad market funds from Vanguard, Blackrock and BMO =)
You can look up each of these ETFs on the BMO website to see their stock chart over the years, dividend yields and their total return over various timeframes =)
For ZEA or any ETF in Canadian dollars, it doesn't matter the account type. TFSA or RRSP would be treated the same, you can't avoid international or US withholding taxes if the ETF is in CAD
Hi there! thank you for the informative video. Do you buy ETF's anytime or you wait until it nears to its 52 week low. What is your strategy on " WHEN to buy a ETF?
Since ETFs contains so many holdings, you don't generally see as many big swings up or down and trying to time the performance of 150 stocks is virtually impossible
Thanks so much. I am a beginner in Canadian market. Want to start with 1000 cad. Currently looking at short term goals around 3-6 months. Coyld you pls suggest some stocks if you have time?
Hi Adrian thank you so much for this informative video. But I have question regarding ZSP -this etf is similar to VFV so this etf should be invested in TFSA and FHSA due to 15% withholding tax (if there are any differences please explain) ? For RSP I should stick to VOO
Correct, it is a CAD ETF that holds US holdings so it will face that 15% withholding tax the same as VFV. You will see this in the distribution breakdown on the BMO website (foreign taxes withheld)
Hello Adrian! Been watching your videos for quite some time. Fellow Canadian here, and you have helped me tremendously! I have a question for you. Do you happen to invest in fixed income ETF's like ZAG or ZDB? I recently discovered these and was thinking of adding them to my TFSA portfolio but wanted to get your take on them first and foremost. Any advice you have would be greatly appreciated:)
I have a very small position in bond ETFs such as ZAG and ZFL. However at my age with my goals, bonds don't really fit very well. They will be more important to me years or decades later as I approach retirement!
Another thing to consider is short term bond ETFs, I use these for my short term savings goals, I talk about this in detail in this video here (ticker symbol ZMMK) th-cam.com/video/8o05hFWHwQQ/w-d-xo.html
Hi Adrian! I appreciate this video even if it's sponsored by BMO. Most dudes on here would recommend index funds by Blackrock or Vanguard, which are both American companies even though they have offices here in Canada. Given how much power and wealth those two corporations have amassed I'd rather put my funds in a sound alternative. I'll definitely look into buying more BMO ETFs for my portfolio. So far I only have ZSP among my Vanguard and Blackrock ETFs, but I'll seriously consider adding most of your other recommendations to my portfolio at some point in the future. Would you consider doing a video about bonds and bond funds in the future? I know they're not very good at wealth generation for young people, but they might come in handy in the future if market conditions change drastically. Also, what is your opinion on market cap weighted index ETFs vs. equal weight index ETFs?
Oh don't get me wrong, Vanguard and Blackrock also have great ETFs and I have spoken about their ETFs countless times over the years! And to be honest, I would be open to working with them as long as they gave me freedom to say what I want, criticize them when it's warranted and be true to myself and my audience. That's what BMO does and that's why I agree to work with them. Plus as you say, it helps to stick up for another Canadian company 🇨🇦
Regarding bonds, I have made a few videos about them but for my stage in life, bonds aren't a priority at all. As I get closer to retirement, that will change although the few bond ETFs I do have are ZAG and ZFL but it's a tiny position
I do like equal weight ETFs since they give me more exposure to the small players! For example, in my old video here on the best REIT ETFs, I compare a BMO, Vanguard and Blackrock fund and BMO is actually equally weighted which makes it stand out among the rest, check it out! =) th-cam.com/video/LQBjOpLedpo/w-d-xo.html
I dont get what people are mad about, you're just informing us as usual about a couple of good quality etf's, still up to us to pick which one to invest in lol. Anyways thanks as always, small question, does it matter if I buy during market hours or outside of those? I work by night and Im almost never awake during the market hours
Thank you for those kind words, I'll admit I was a little taken back by how angry some people were in the comments... If it's anonymous trolls, I don't really care but when it's long time viewers who I've built a relationship with over 4+ years, honestly it was a little disheartening 😕
As always, I would NEVER let anyone make me say something dishonest or sell something I don't believe in or personally use myself. No paycheque is worth losing that authenticity. And to focus on the positive, the majority of the comments have been incredibly kind and supportive like you Youssef! 🙏
And to answer your question, yes if your brokerage allows pre-market hours or after-hours trading, then all of these ETFs can be bought then. Just keep in mind that when trading after hours, the volume (# of people who buy and sell) is MUCH lower so there's a chance you wouldn't even be able to buy since no one is currently looking to sell
I want to get started investing in ETFs, however looking at the current price, they are all at All-time-highs. Would it be wise to buy at this price or should I wait? On the other hand, I don't want to wait any longer as I have been delaying it for a long time.
I am new to investing and haven't invested in international markets. I would like to buy some international index ETFs and am wondering what account these should go in (RSP, TFSA)? I invest through Questrade. Am I able to invest in international index ETFs through Questrade?
For international ETFs, there's no way to avoid those withholding taxes. We only have a special tax treaty with the US so that's why I hold US dividends in my RRSP to waive those taxes. But for international, you can't avoid them
@@CanadianTShirt Thanks for your reply! Also, I wondered why your strategy includes having a larger portion of Canadian and US Index ETFs vs. international index ETFs? Are they comparable in terms of security? Or maybe the reason is the withholding tax issue with international ETF?
I just know and understand the Canadian and US market much more so than international. Also these industries tend to be less susceptible to foreign policy and international regulations
I have a another question too Do the etfs tracks the index accurately and effectively? Means if the index is up 20% do the price of etf share will also be up 20%? And also tell me about the long term growth also? Much love and respect to u 🔥❤️♥️
Oh I've showed my RRSP portfolio several times in free videos! But if you want the full 30 minute breakdown with the monthly updates to my RRSP, I do that in my members-only videos
great video as always. as a beginner in investment myself and having maxed out my registered account RRSP and TFSA, what ETF's would you recommend me please to invest in or consider and with which platform?
From a tax standpoint, the most tax favourable income is capital gains followed by Canadian dividends so all the ETFs on this list fall in that category (growth focused)
Hello from London Ontario and thank you for another great video. I appreciate your response to the comment above re Bonds. I had the same question. I'm also curious about what proportions you assign to each of these etfs. I'm also very fortunate in that my work provided a pension (HOOP) and would love to see a video with your take on investment strategies for those of us who have a pension. Thanks again!
Great question! But I have to give an annoying answer 😂 Your proportion will depend entirely on your situation, age, time horizon, risk tolerance etc! So what works for me most likely won't work for you! So take inspiration from my approach and understand my reasoning but never try to copy mine. You gotta make it tailor-made for you and your family 😊
But to give you a rough sense of numbers, I would say about 40% of my portfolio is Canadian market, 40% in US, then the rest in international. And a tiny amount in mid-cap and small caps. Hope that helps =)
Regarding the pension, make sure you understand the underlying portfolio of your pension fund. That way you could choose to either replicate it or build a portfolio that compliments it without too much overlap, the choice is yours!
Thank you Vic for the apology, I do appreciate that. I went over 4.5 years before doing a single sponsorship on TH-cam and believe me, I still feel a little "icky" doing them. Even if it's with companies that I love like Questrade or BMO ETFs. But the reality is that this is my livelihood, TH-cam doesn't pay what it used to and I decided long ago NOT to sell a course. So sponsorships are the main way I can keep this channel running. But you have my word that I will only ever work with companies I personally use and believe in 100%. You will NEVER see me promoting crypto junk, or pumping a meme stock or promoting something I don't believe in. If you ever catch me doing that, please call me out! 😊
Don't forget there leveraged index ETFs like HFU (2x leveraged bull big candian banks), HSU (2x leveraged bull sp500), and HQU (2x leveraged bull NASDAQ) HZU (2x leveraged bull silver) In a bull market these ETFs will excellerate growth
I only promote ETFs that I personally invest in. And I certainly don't suggest leveraged ETFs to a beginner investor. Yes there is potentially more growth but also significantly more downside. This should only be tried by experienced investors who are aware of the risks
Great info as always Adrian. I’m mostly invested in blue chip Canadian stocks and mutual funds that we both know have higher management fees, (yes I’m old) lol. I’m looking for deals in this super heated market. I think I will do some research into these interesting etf’s 🙏
And no worries! I started off my investing journey with mutual funds as well! This was over a decade ago but once I discovered how much I was paying in annual fees, I left and never looked back!
Ya I personally own all of these ETFs (or equivalent versions) across all of my accounts. I believe that you need exposure to each of these sectors so that you can benefit in any market condition, so use this video as a starting point for your own research! 😊
That's not bad at all! Again it depends on what you're investing in! Paying 0.55% for a broad Canadian or US market ETF is definitely too high. But for international or more specialized exposure, that's very reasonable
@@CanadianTShirt unfortunately no it’s a mutual fund The invest in 10 different ETFs and I added up all the MER’s totalling 0.86 but the mutual fund MER is 0.55 can you explain why?
Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
I touched on that at the end of the video, it's another reason why I personally don't hold ZEQT. It's an ETF that holds other ETFs so you effectively are paying an MER twice
I prefer to have full control and customize my ETF portfolio. But don't get me wrong, these all-in-one ETFs are still WAY better than traditional mutual funds! At the end of the day, it's a personal preference =)
@@CanadianTShirt agreed! Not everyone is an investment nerd like we are, so for those people, all in one ETFs are a good choice. Personally, I learned about all this stuff before the all in one ETFs came along, so I just can’t bring myself to make the switch, because like you I prefer to have full control over my portfolio, and I’m frugal! The all in one ETFs cost more than buying the underlying ETFs directly.
@@CanadianTShirt My understanding is that while you are technically paying the MERs of the underlying ETFs, the overall cost is consolidated into the single MER of XEQT, making it a more straightforward and cost-effective investment option. Maybe that is what you are implying also in your reply. Or do you mean that a total of the various sub-ETFs will add up to a much higher MER, meaning MER of 0.20% of ZEQT + MERs of various sub-ETFs?
Oh you are absolutely right, the posted MER of XEQT is what you pay. But what I'm saying is that if you took the weighted average of all the underlying ETFs, you would get slightly less than that. After all, the fund managers of XEQT need to earn a profit as well. You are paying a bit of a premium for that convenience. Hope that makes sense =)
Hey man - in another video you say buying VOO is better than buying VFV as the MER is three time 0.09%. In a different video you now say BMO’s ZSP is good which is the same as VFV just a different company. How does your story hang together? and why should people trust you?
Thank you for your support! 🙏 Normally I don't care when I get hate from anonymous trolls but I'll be honest, it is disappointing and disheartening when I get personal attacks from long time viewers who I have helped and answered their questions for many years. Thankfully this is a small minority 😊
On the plus side, it has a slightly lower management fee and if you hold it in your RRSP, you can save that 15% withholding tax on those US dividends. But on the downside, it's in USD so you have to deal with currency conversion
Another downside to US-based ETFs like VOO & VTI is you have to buy a lot more of them in order to take advantage of the DRIPP option if you are using a brokerage that doesn’t allow you to buy partial shares. That’s why if you have a smaller portfolio, you might as well just stick with the Canadian based ETFs until you have a larger portfolio.
The best performing market over the long term is USA. Just buy s&p 500 ETF and do the dollar Cost averaging strategy and you’ll be fine. No need to think about Tesla or NVIDIA and the mag seven being too rich. Once you set it up twice a year, just forget about it and enjoy life.
Check out my Members-Only videos for a full breakdown of my investing portfolio, each stock and ETF. I occasionally release free versions of these videos too, check out the latest one from last month =) th-cam.com/video/JqZDb3gVqu8/w-d-xo.html
These all in one ETFs are a great, hands-off approach. But at the end of the day, they are just a collection of a few ETFs. Personally, I'd rather have full control and buy those ETFs separately but it's a personal choice =)
Well I hope you can appreciate how selective I am with sponsorships.... I've been running this TH-cam channel for almost 6 years now and I've only done a grand total of 3 sponsorships. And each of them are products and services that I personally use and I whole heartedly recommend to my family and friends
And I've been talking about and recommending BMO ETFs for YEARS, totally for free. So it's a natural fit and not at all insincere to be paid this time, again only to endorse funds that I personally invest in
For me, credibility and authenticity is the most important thing. Which is why I turn down dozens of sponsorships on a daily basis because I would NEVER sell crap to my audience just for a paycheque. I hope that helps put your mind at ease 😊
@@CanadianTShirt Yes. Your videos have helped me, my family and friends a lot. I cannot thank you enough. I appreciate all the hard work you put into this channel for our community.
What are you talking about.... this video is for LONG TERM investing. Money you won't need for decades. If you want to "get rich quick" you're in the wrong place
My 3 fund canadian etf funds are HXS, HXQ and XDIV dollar cost averaging weekly and I dont pay that 15% withholding tax because dividends are reinvested by the funds ....
I understand this is a BMO-sponsored video, but honestly this is far less efficient than just buying XEQT and maybe 1 more fund like VFV if you want to increase American exposure. Always appreciate your content regardless!
Well I cover that point at the end of the video with ZEQT (very very similar to XEQT)
All in one ETFs are a GREAT option for hands-off investors! But you lose the customization and tax efficiency. I would rather separate those underlying ETFs but at the end of the day, it's a personal preference =)
What you think having a mix etfs like this ....vfv , qqc-f, vdy, vcn ????
That's great! Good mix of US and Canadian but you should throw in some international exposure too =)
Hi , how do I buy these ETFs?@@CanadianTShirt
I’ve been looking for a specific video talking about BMO ETFs and this one just explained everything I needed. People criticizing it just because it is a sponsored video didn’t understand the intente here.
I'm glad you found it helpful! It is disappointing but it would be a different story if I "lied" and hid the fact that this was sponsored... I don't think I could have been any more clear that this was a partnership so I'm not sure why people are so angry? I guess this is 2024 lol
I just started investing a few months ago and you are one of the few creators I trust 100%. You are just presenting options here and not pushing anything to anyone or selling courses. You’re doing a great job man!
Thank you for those kind words and I'm so proud that my videos helped you get started! I truly appreciate the trust you place in me but I'll say this again, NEVER blindly trust anyone online, including me! Listen to what I have to say and understand my logic but it's always up to you to make your own decisions that fit your goals 😊
@@CanadianTShirt Absolutely, and that’s another great advice. Thanks again and looking forward to the next video!
@@Panda-ek5me you got it buddy!
Hi,
I’m a new subscriber from Canada! I recently discovered your videos and subscribed to your channel after watching a few. Thanks to your content, I’ve made some adjustments to my investment portfolio. What I really appreciate is how direct and no-nonsense your approach is-you don’t waste time with unnecessary fluff. Keep up the great work!
I am seeing a lot of complaints about this sponsorship, not sure why. You are letting us know about things we can research ourselves and invest in, just like you usually do... Maybe comparing these BMO ETFs with the iShares and Vanguard equivalents would give a fuller picture? Talk about the fees, performance, drip etc between ETFs with similar holdings
Thank you for understanding, I'm with you and I am trying to be as upfront as candid as I can. By no means am I "hiding" the fact that this was sponsored, I literally disclose it in the first 30 seconds. But again, this is important: these are entirely my words and my honest thoughts! I would NEVER do a sponsorship where they give me a script and tell me what to say or make me say something I disagree with. I would never sell anything dishonest to you guys, no paycheque is worth that
And you bet I absolutely will be making more videos where I compare ETFs from all providers (Blackrock and Vanguard) but it wouldn't be fair to do so in a sponsored video. It's not quite a fair comparison when I'm being paid by one of the "contestants" 😉
@@CanadianTShirt If the sponsorship agreement lets you talk about other ETFs than just BMO products, I think it would be totally fair. Show what areas BMO leads in, with numbers to back it up. And where they fall short, put their feet to the fire. Highlight where they can do better. Puts pressure on them to improve, which gives investors (us audience members hopefully) better products.
Also, if you come back to read this, a terrible nickname idea for your followers: Sleeves or sleevies
hahaha that's creative! But when you wear T-shirts as often as I do, I think that being called "sleeves" would be derogatory 😂
My best performers for etfs have been QQQ, TQQQ, VGT, IYW for USD funds. My favorite single companies are AAPL, NVDA, MSFT
It's great that you've found a portfolio that works for you! =)
Great video! I personally hold ZSP, XUU, and HXQ. Might start looking into these alternatives. I do have some overlap in my three etfs, but it has done great for me so far. I don't mind that this is sponsored by BMO. These are great products. Don't listen to the haters. I am happy you are only getting sponsors you believe in and not random ones. Keep up the great videos!
That's a great list! And don't worry, overlap is totally fine as long as you are aware of it! 😁
And thank you for the kind words. Frankly, I am a little taken back by how negative some of the comments have been... especially from long time viewers who I have helped and built a relationship with over many years... I mean I've made countless videos where I talk about BMO ETFs that I love for free (including Vanguard and Blackrock ones) so I'm not sure why it's such a "betrayal" that I'm getting paid this time 🤷♂️
I just hope that most viewers appreciate how selective I am with choosing sponsorships. I've been on TH-cam almost 6 years now and only done a total of 3 sponsorships. And I don't sell a course. In fact I turn down dozens of paid partnerships on a daily basis because I don't want to sell crap to my audience. Anyway I'm trying to focus on the positive and the vast majority of you guys are absolutely lovely and supportive and I couldn't be me grateful to have you in this community! 😊
Love BMO Funds! ZSP all the way
It's a great fund! The S&P 500 should be a staple of everyone's portfolio! =)
I usually love your videos but for this one, the content loses so much credibility by being BMO sponsored and then having you push their funds... Thats not a great way to do content videos imo.
Agree with you 100&%
I'm sorry you feel that way but I've been running this TH-cam channel for almost 6 years. In that time, I've done a grand total of 3 sponsorships. I am EXTREMELY selective with who I choose to work with. I ONLY promote products and services that I personally use and recommend to my family and friends
In regards to BMO ETFs, I've been talking about their ETFs for over 5 years, totally for free! And all of these ETFs are ones that I personally invest in so I don't see any problem with being paid to do the same thing I've always done
If you can't stand sponsored videos, here's my advice. If you see the "paid partnership" popup or you see the #ad disclaimer or you hear my disclose the sponsorship in the first 30 seconds, just click away. For everyone else, let me be clear: these are entirely my words and my opinions. I would NEVER let a sponsor hand me a script and I would NEVER say something I didn't believe in or promote something I don't personally use or find value in
What’s wrong with BMO funds? They have billions of dollars in assets under management and are amazing products.
Hello Adrian: I very much enjoyed this video. Thank you! I'm in Nova Scotia.
I also have money in BMO Retirement Balanced Portfolio Series A, a mutual fund, and add to it monthly automatically and have done so over the years. Keep up the great work, Adrian.
I'm glad you found it helpful! How much in management fees are you paying for that mutual fund?
If you're happy with it, great! But generally speaking, mutual funds charge significantly higher management fees where you can essentially replicate the same portfolio with a handful of ETFs for a lower cost!
@@CanadianTShirt Hi, Adrian. 1.83% is the MER. Thank you.
Ouch.... that's definitely way too high for me... My suggestion is to look at the portfolio breakdown (which countries it's invested in, which industries and which individual companies) and I'm sure you could replicate a similar portfolio with the 6 ETFs in this video. And all of which will have a fraction of that MER =)
@@CanadianTShirt Thank you again for responding, Adrian. I will listen to your video again and make some changes to my portfolio. Thank you sincerely, Adrian! I've got some work to do.
I just watched an older video of yours where you recommended XIC, VDY, XEI, and VRE. Do you still recommend those or are your saying to go with these BMO ones instead? Or would you get all of them? Would that many different ETFs be necessary? Sure there is no commission when buying but isn't there a commission if you one day sell?
Oh absolutely I still recommend all those ETFs! I still own them and continue to buy each of them on a monthly basis! =)
These ETF ones would be a good compliment to give you that international and mid-cap exposure =)
If you use Wealthsimple, no commission to buy or sell ETFs in Canadian dollars. For QT, yes no commission to buy and only $5 to sell. Generally speaking, you will buy in small steps and sell in one big step so $5 shouldn't matter too much at that point 😊
@@CanadianTShirt Cool, thanks for the quick reply and all the great content!
Happy to help! Best of luck! =)
Great Scott! Thanks Adrian for the information. Loving the Superman, no glasses eye sight. No longer Clark Kent. Much continued success in your investing adventures.
hahaha thank you Jason! Ya man it's truly been life changing for me! Having 20/20 vision feels like a superpower! 😁
"If you're holding me, who's holding you??"
@@bailey-k6b haha classic! 😁
Your amazing! Thank you for this information. ETFs are the best way to go.
Thank you! Yes whether you are a beginner or veteran investor, ETFs should absolutely be the backbone of your portfolio! =)
Thanks Adrian. Great advice once again. I do not know where I would be without you!
Thank you Natalie for those kind words! I'm glad that my lessons have been helpful but you deserve the credit for taking that first step and taking charge of your financial future! 🙌
Such interesting and helpful video .
Looking forward to get more videos like this.
Thank you! Feel free to go through my previous videos from the past 6 years!
I have a whole playlist called the MILLENNIAL INVESTING Guide which I think you'll find helpful! =)
th-cam.com/play/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g.html
Great insights on building a diversified portfolio!
I'm happy to hear that! Diversification is the name of the game! 😊
Should we allocate part of our portfolio in Bond ETFs?
It depends on your age and investing goals! Personally I have a TINY bit of exposure in bond ETFs like ZAG and ZFL but bonds are not a priority at my stage in life
If I was getting closer to retirement, then absolutely I would have more exposure into bond ETFs for that lower volatility and reliable cash flow. But for long term investing, 10+ years I focus on equity based ETFs =)
@@CanadianTShirt Question: I'm early 50's and want to keep investing for at least another 20+ years.
85% of my portfolio is XGRO. I'm starting the new year by investing more into VFV & XEQT. Is this ok? I'm wanting more of my portfolio with all stocks and less bonds. So, instead of selling all or part of my XGRO shares, I'm planning on topping up my other ETF's.... thanks
In your video explaining Norbert's Gambit, you said you'd rather hold US stocks directly and not pay 15% foreign withholding tax than doing what you said above. What changed after that? Why did you move back to Canadian ETFs that hold US stocks? Or is this for your TFSA and you're still holding US stocks in your RRSP?
You got it! In the RRSP, I keep all my US investments in USD to avoid that 15% withholding tax on dividends! Outside of the RRSP, you can't avoid it so it's fine to hold CAD ETFs with foreign holdings
This is one of those tax planning strategies I discussed at the end, why I avoid the all-in-one ETFs like ZEQT. I prefer to customize it to maximize the tax benefits of each account type =)
@@CanadianTShirt Beautiful, that makes sense. Thanks for clearing. your videos are super helpful. Have a great day. Cheers!
I'm happy to help! Have a great weekend! =)
@@CanadianTShirt You say RRSP but same goes for TFSA correct??
Zcn is such a solid etf. I have owned it for years.
You got it! One of my favourite Canadian ETFs! =)
Just make sure you have US exposure and international exposure as well! I made the mistake of ignoring foreign markets for a few years when I first got started investing!
@@CanadianTShirt absolutely!!
🙌
Hey Adrian, I'm looking for the spreadsheet that you've shown in another video 😅. Did you make it, or did you take it from somewhere else? Also, I was wondering how the spreadsheet works when you purchase the same share but at different prices (because it was purchased at different times of the year, for example). Thank you!
You bet! I include the link in most of my videos, it's free to download! You'll find it under this video DRIPs Explained that's where I also break down the template and what each column means =)
th-cam.com/video/ouyXwaTOfhU/w-d-xo.html
@@CanadianTShirt niceeee! Thank you!
@@marcosgcm happy to help!
Another great video. I just finished editing an ETF video so it may have amused me more than it should have lol.
Thanks Candace! The worst is when you're required to say the entire ETF name.... they're certainly a mouthful! 😂
@@CanadianTShirt Take a big breath for sure 😅
haha you got it!
Hi Adrian always happy to see a video in my feed from you it’s always a must watch! Immediately 😂I’m wondering about your thoughts on high dividend covered call etf’s
It's not something I'm into.... the management fees are usually pretty high, worse than some mutual funds even. And yes the massive dividend yields are tempting but you are losing any hope of capital gains and a lot of the time you will see a loss in value over time...
I would rather invest in quality companies that have a bright future, that way I can benefit from BOTH dividends and long term capital appreciation! 😁
Especially if you are focusing on long term growth, over the course of years or decades! But if you are looking for a short term, income focused asset, then they can work but it's not for me =)
And thank you so much for your everlasting support! It really means a lot to me! 🙏
On the topic of dividends, do you still invest in XEI? I remember you had recommended that a number of years back. I recently got rid of it in my portfolio in favour of the more diversified VCN and VCE, where you still get dividends but better Appreciation over the long run. XEI is great if you like a monthly dividend, but the capital appreciation isn’t great, which is why I decided to return to just sticking with the more broad indexes, apart from a couple value factor ETFs and REITs.
Just a question
Where should I hold my tfsa and rrsp
I mean should I hold it in questrade or Wealthsimple
Which is better
I want to split my investments so that’s why I wanted to ask you
I have several videos comparing both brokerages, here is the latest one focusing on WS vs Questrade all about US investing! =)
th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
You can absolutely split your portfolio and use both brokerages, I do! But long story short, WS is fantastic but only for CAD investing! For US investing, they are very expensive with their conversion fees. That's why I use Questrade and Moomoo for my US investing =)
Does ZSP pay 15% US WHT just like VFV does?
Yes any CAD ETF that contains US holdings will face the same withholding tax on those dividends. You will see this on the BMO website when you look at the distribution breakdown =)
Thank you, your video really helps a lot. I bought ETFs based on your recommendations. Is there any CAD ETF for AI industry, do you recommand to invest in such area at this time.
Here's the thing, the more specialized the ETF, the higher the fees.... so I don't generally recommend going that route
Instead if you want to focus on the US tech sector (major AI players) you can look at the Nasdaq 100, they are mostly the big tech companies like Nvidia, Apple, etc. ZQQ would be a good one for that in CAD =)
I am fan of your content and had learn a lot. Please share more videos for public which are not sponsored. You post very rarely and when you do its just sponsored this days and its not the best content I have seen. Please post more often. We expect atleast once a week. 😁
I appreciate your feedback but I gotta push back here. I've only done 2 sponsored videos in 4 months. Ya I double checked and before last week, the last sponsored video I did was in early July.... so it's been several months of public, organic vids. Ideally I didn't want to make two sponsored videos back to back (Moomoo one and then this BMO one) but when it comes to sponsorships, the timing is often out of my control. Getting approval and compliance from their legal team for example can take weeks and even months sometimes
But I hear you and don't worry, I totally agree. My goal is to spread out sponsorships and hopefully only do one every 2 or 3 months but due to compliance delays, I was forced to launch these back to back
But on your second point, I definitely cannot post one video each week. I am a one man show. I don't have a team, I don't have employees or an editor. I do everything on my own and I spend a TON of time responding to comments every day and planning out each video. I always believe in quality over quantity
To manage your expectations, I am aiming for one video every 2 weeks. Plus a members-only video in between as well as Blossom blog posts and Instagram reels in between. But I will not commit to more than that. Believe me, all I do is work and especially as I get older, I can't keep burning the candle at both ends. I am working on more balance in my life so long story short, no you should not expect one video a week. That's not happening 🙂
@@CanadianTShirt thanks for letting us know. People love you and love your content and want to learn more from you. Consider people’s comment as love towards you 🎉🎉
Thank you for this video! Would it make sense to buy some ZSP and hold mainly ZEQT to increase exposure to S&P500 above and beyond ZEQT. Is this duplication not advised? Thank you
Duplication and overlap is totally fine! Just as long as you are aware of it! =)
I have a ton of overlap between my various ETFs, and that's totally fine! Just as long as you understand that your true exposure may be higher than you think because you are double dipping in certain sectors =)
Good stuff pal thank you. I only have VGRO, what would you recommend to complete it without overlapping ? Cheers
Well VGRO is actually pretty similar to ZEQT which I cover at the end of the video, it's an all-in-one ETF. So it's just a collection of a few ETFs (but Vanguard ones not BMO lol)
Again for me, I personally prefer having total control and customizing my portfolio, mainly for tax efficiency. So I prefer separating my US ETFs from my Canadian ETFs etc. With something like VGRO or ZEQT, they're all bundled together. So it's simpler no question, but not necessarily as optimized. It's a personal preference at the end of the day =)
@@CanadianTShirt appreciate it man!
Glad I could help! =)
About US ETFs and tax efficiency, it’s only if it’s a US listed ETF like VTI or VOO that it’s more tax efficient inside of a registered plan such as an RSP or RIF. IF YOU HOLD A CANADIAN DOLLAR LISTED US ETF, YOU’RE STILL GETTING THE 15% WITHHOLDING TAX BECAUSE THE TREATY BETWEEN CANADA AND THE US DOES NOT APPLY TO CANADIAN LISTED ETFS . still, this is a good overview for beginners new to index investing. I’ve been doing it for years, so like you I prefer individual ETFs but I prefer Vanguard over BMO, although I do hold ZMMK and ZST. That being said, according to PDL capital and Justin Bender who are also big Canadian indexers in the TH-cam and podcast space, it’s only worth buying US listed ETFs when your portfolio is quite large. For those starting out or with smaller portfolios, Canadian listed ETFs are just fine.
Great video! Would you put these ETFs in a TFSA? Or the US ones in an RRSP?
All of these ETFs are in CAD so it really doesn't matter which account you hold them in. Both the TFSA and RRSP will be treated the same!
The only way you will save the withholding tax with an RRSP is if you hold the USD version of those ETFs! I have a whole video breaking down this important point =)
th-cam.com/video/JqZDb3gVqu8/w-d-xo.html
This raises another question for me: what makes you decide to hold an ETF in CDN vs US? What's the advantage of these being CDN instead of US versions?
@@LIFTwindsor there is a treaty between Canada and the US, where US based ETFs such as VTI and VOO do not have the 15% withholding tax when held inside of a registered plan such as an RSP or an RIF, But for those just starting out or with smaller portfolios, you are fine listing in the Canadian based ETFs that invest in the US market. It’s once your portfolio gets into the six digits that you are better off investing in US ETF inside of your RSP or RIF. also, the 15% withholding tax for US-based ETFs Is still taken inside of a TFSA or RDSP, so for those you might as well just invest in the Canadian based ETFs.
Thank you, Adrian. Great info!
Thank you! I'm glad you found it helpful! 😊
Are there any better equivalent to all these?
Vanguard and Blackrock will offer similar versions to these ETFs although BMO has some specialized ETFs that I haven't seen anywhere. It's the Canadian advantage 😊
How do I switch my BMO dividend stocks to reinvest in the stock to create a drip , instead of them paying me in cash , I've look all over investorline Thank you for your help . great video's have learned so much
I've never used BMO Investorline but you might have to call them and have them set it up for you
With other brokerages like Questrade, you just submit a request and you're good to go
hey Adrian, do you still have a Questrade referral code?
You bet I do! I include it below most of my videos, here it is =)
questrade.sjv.io/CANADIANTSHIRT
Adrian thank you for all the information about canadian investing. I have been trying to understand the value of rrsp investing. So far i don't understand it. I want to invest in some American stocks and i believe it is more valuable to do this in my tfsa. I understand the belief is rrsp for American dividend stocks so that as a canadian i won't lose the 15 to 20% from withhold tax. However, the income tax i would pay when i with draw money from the rrsp, along with what i understand as a 10% withhold fee that comes with a withdrawal from my rrsp is a total of at least 25%. This leads me to believe i am better to pay the US withholding tax up font because it is less. I am new to all of this and trying my best. I am happy to learn what is actually happening. I welcome a clearer understanding of rrsp investing.
I'm glad my videos have been helpful and don't worry it certainly can be confusing! Here's the bottom line, US dividends are more tax efficient in an RRSP than a TFSA. BUT that should NOT be the reason you open an RRSP!
The TFSA is good for everyone! There are no downsides. The RRSP can be even better for some people but it doesn't work for everyone. So you have to understand how the RRSP works, with your current income, tax brackets, expected retirement income etc. If the RRSP is the right choice, then you should open one and hold US dividends inside it
And to clarify one of your points. The witholding tax on RRSP withdrawals is NOT an extra tax! It's like a pre-payment of the total tax you will pay. It's done that way so that you're not surprised at the end of the year with a giant tax bill. Make sure you watch my entire RRSP GUIDE to understand these important rules!
th-cam.com/play/PLj8bU3AuW2qHOikk4VRpSDXCZTuH7eUhz.html
I even have an entire video (#2 in the playlist above) all about RRSP withdrawals and how they are taxed so make sure you watch that one! =)
Thank you I will watch the videos an take notes this time
I recently started invested and am planning to buy and hold. I currently have XIC, VUN, XEF and XEC in my TFSA and FHSA. Would love to know your thoughts on these index funds. Just starting out makes me nervous!
Hi there, fellow Canadian here. I love your videos! Question- I’m about to create a quest trade account using your link and I would like to know why you recommend that we use wealth simple for Canada trading and QT for US trading. My question is why not use QT for all trades, Canada included? I watched your video where you compare the 2 but I am not clear on the advantages of WS for Canadian.
Thanks!!
Conrad
Overall Questrade is my favourite platform and I use it for all my investing: both CAD and USD. But from a purely cost perspective, WS is cheaper for Canadian investing. For USD, it's not even close, Questrade is WAY cheaper!
Now when it comes to actual features, I still think Questrade wins out over WS. But there are certain features that WS offers that Questrade doesn't. So when it comes to CAD investing, it's a bit more of an even match. I'll break this down in part 2 of my comparison video! =)
Thank you Adrian. I was going to buy some vfv is it best to hold in a Rif or tax free savings account, thank you.
If you are going to use a registered retirement account like the RRIF or the RRSP, I suggest going for VOO instead of VFV! I have a whole video breaking down those benefits! =)
th-cam.com/video/IlSEg6Fux_A/w-d-xo.html
@@CanadianTShirtthank you
@@patriciaweller1516 happy to help!
Great info. Is it a bad idea from a risk standpoint to go all in on XEQT? Id prefer not too rebalance. I have a thought of buying both XEQT and ZSP (im aware of the cross over) better for risk?
XEQT is very very similar to ZEQT. It's a great all-in-one solution. As I covered at the end of the video, I prefer to customize it myself rather than have an all-in-one bundle but it's certainly not a bad move!
And yes overlap is totally fine! It's your portfolio so you make it work how you like it =)
@CanadianTShirt thank you
Happy to help!
I don't understand the hate over this video being BMO sponsored.
Much of the knowledge given here can be applied to most ETF's, regardless of who manages it. The fees may differ and the companies within similar funds by other agencies may differ slightly, but if you understand how ETF's work, you can apply this knowledge to deciding what ETF's to own.
I put all my CAD stocks and ETF's into my TFSA and USD stocks and ETF's into an RRSP
These are mostly buy and hold investments. Occasionally, I may sell something when the value gets high then either keep the cash on the sidelines. Usually the plan is to wait fir the same stock to dip below my sell price, but sometimes I invest it elsewhere if it keeps climbing or the dip was not low enough.
Thank you for those words of support! I couldn't agree more! And I have been speaking about BMO ETFs as well as Vanguard and Blackrock ETFs for literally 6 years here on TH-cam! It wasn't a problem then and I don't get why people have a problem now....
I am extremely selective with who I work with and I would only ever endorse investments that I personally own and believe in. But this is the world in 2024... a certain group of people just love to be outraged 🤷♂️
But that's a great strategy! I'm the same way, all of these funds are long term buy and holds! 😁
@CanadianTShirt yeah, sometimes I'm tempted to cash in on elevated stock prices and sell stock even if they pay small dividends, but then I just end up holding out for a correction and buying the dip.
I have a few stocks that are up 45% in just a few months.
What baffles me is my Marinuana stocks. This particular company I bought shares of when I started investing seems to be on a continuous down trend. Despite reporting increased profits for 5 consecutive years, expanding their business continually, joint ventures with larger companies in related fields, and buying out their direct competitors and becoming one kf the largest legal canabis producers in Canada.. All these things look to me like a company whose stock price should be rising, but they're on a 5 year down trend. They get the occasional uptick when their quarterly reports come out but shortly after, continue to drop. I'm tempted to start buying them again so I can dollar cost average down near the current price, then unload when it jumps up again. 😂
That's because when weed stocks came out, they were overhyped and overvalued to such an extreme degree! So even though they are profitable now, they still can't compete with those insane valuations from years ago! That's why I never touch IPOs or penny stocks, they are propped up by so much hype rather than fundamental value!
Adrian you sound different this episode? Like your skimming through the different ETFs and not giving a good pro and con outlook on each of them. Normally your pretty good at this. Oh, never mind the last 17 seconds explained why.
Oh well this is a different format! In those videos, I'll do a deep dive into 3 ETFs and I spend 5 minutes on each!
In this video, I went for a higher level overview of 7 different ETFs and how they all fit into my diversified strategy!
If I spent 5 minutes on each ETF, this video would be half an hour long... but I hope I gave you enough of the highlights to showcase each ETF and what sector of the market they cover. I can certainly do a deeper dive into each fund if you like as well
It’s not the point of the video bro lol
Also consider that I'm not saying "you should choose this ETF vs this one" Instead, I am saying that you should do a mix of ALL of them! Since they don't overlap each other, you need Canadian exposure plus US exposure plus international!
HI Adrian, generally, as for SP500 index, do you prefer ZUE (hedged to CAD) or ZSP (unhedged) in the long term? thanks.
I talk about this at the end of this video here, all about US ETFs =)
th-cam.com/video/IlSEg6Fux_A/w-d-xo.html
Generally speaking I go for the unhedged versions. One, the less work involved the lower the management fees. And two, I view currency exchange rates as another form of diversification. I like having USD. Sometimes the FX rate helps me, sometimes it hurts but I don't want to always be tied down to a single currency
Thanks Adrian, I reviewed that video again, this time I am awared of that 15% tax of dividents for Canadian ETF hoding US stocks. So I changed my mind to go VOO instead of ZUE/ZSP as I am using RRSP account. 😊😊
@@jinpang2761 sounds like a plan! Glad I could help! =)
What’s the advantage of this over an MSCI ETF? This strategy seems like you’d have to rebalance more often
The two international ETFs on this list are MSCI ETFs! They track those MSCI indices!
Can you buy these in Toronto stock exchange and are they suitable for tax free savings accounts?
Yes all of these are bought on the TSX in Canadian dollars!
And yes you can hold them all in your TFSA or any other account
Hey Adrian! Grateful for all this information as always, thank you :) Quick question - I understand that it is better to hold US ETFs in the RRSP as we can avoid the withholding taxes. Which account would you suggest for holding international ETFs?
Unless you are investing in a US-based international ETF, it doesn’t matter, because there is no treaty with any other countries other than the US, in terms of international ETFs. For example, for the emerging markets ETF, VEE, which is Canadian based, you are better off investing in VWO which is the same ETF but is US based, if investing inside of an RSP or RIF, to avoid the 15% withholding tax. VEE actually invests in VWO, so it’s an ETF holding an ETF, but because VEE is Canadian based, the 15% withholding tax is taken whether inside of an RSP or not. if you hold VWO inside of an RSP, the 15% withholding tax does not apply, so you will just have the withholding tax for the international countries but not the US. Put really simply, a Canadian based ETF like VEE is not tax efficient because it has two layers of withholding tax, whereas VWO would just have the one layer of withholding tax when held inside of an RSP. On the other hand, the broad-based international ETFVIU is tax efficient because Vanguard restructured it a number of years back to directly invest into the international stocks, so there is only one layer of international tax on VIU, and since there is no tax treaty with any of the other countries outside the US, it’s OK to hold VIU in either a registered or non-registered account. fellow Canadian Justin Bender has some really good videos explaining this much better than I ever could.
Excellent explanation! Yes she is absolutely correct. Unfortunately, the US is the only country where we have a tax treaty to waive withholding taxes on that foreign income. So no matter what, you will pay those withholding taxes. Personally, I hold these foreign ETFs in my non-registered account since the dividends are quite small anyway. It's mostly capital gains which is the most tax efficient form of income. I can make a video breaking down international taxation if you guys are interested =)
@@CanadianTShirt Understood, thank you Adrian and @gogohappygirl! And yes please, I would be interested in a potential international taxation video!
You got it! =)
How to invest in Usa index without conversion fees?
I have a WHOLE video breaking down the different ways to invest in USD and the costs. I prefer to use Norbert's Gambit to avoid this conversion fee! Check out the video here =)
th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
@CanadianTShirt Thanks!
Happy to help!
Thanks, I was looking at ways to invest in international ETFs to have Toyota and TSMC in my portfolio.
You got it! International exposure is so important and something I neglected when I first started investing so I wanted to highlight it here =)
BMO have some of the best canadian ETFs. I understand and approuve you accepting their sponsorship. However, I suppose your content can me more informative when you can compare and contrast ETFs form different ETF providers "freely". That being sad, all you said about BMO ETF is honest and accurate! So don't worry if you accepting sponsorship bother some people. Just don't let them change the awsome nature of your independent content!
Oh absolutely! And don't you worry, I will definitely be making more videos comparing various ETFs, including Vanguard, Blackrock and BMO. But obviously, I can't do a comparison video where I'm being paid by one of the "contestants" 😉
My rule from day one has always been the same, I am extremely selective with who I work with and I will ONLY ever work with companies that I personally use and recommend whole heartedly. I will never take on a sponsorship where they tell me what to say, where they give me a script or they make me sell something that I disagree with. My honesty and sincerity is the most important thing for me and my channel and I would NEVER sell that for any amount of money. And the BMO team understands that, that's why I agree to work with them 😊
I have a question bro
Suppose am doing a sip in etfs using questrade as etfs buying are free in it and on selling will i be only charged 4.95$ on the full order as am investing in one etf only ( means i can sell all the share just giving the brokerage once) if am investing in 2to3 etfs??❤❤
Hi I wasn't quite clear on the question... but yes that's a solid strategy. Use Questrade to buy ETFs (even just one or 2 shares since you don't pay commissions) and when you eventually do sell, then you sell a large amount so that you only pay that $5 fee once =)
What's the ratio of how you invest in these etfs?
The biggest chunk by far are the Canadian and US market ETFs! Then the international ones make up around 10% exposure. Then the mid caps and small caps are a tiny portion
Harvest? Purpose? Hamilton?
I personally don't invest in their funds. I know they're popular but they don't fit my goals, generally. I stick with broad market funds from Vanguard, Blackrock and BMO =)
Nice vid thanks. Would be good to see how these ETFs perform and what is the returns u get from them?
You can look up each of these ETFs on the BMO website to see their stock chart over the years, dividend yields and their total return over various timeframes =)
do yo need NG for any of these ?
Not at all! All of these ETFs are already in Canadian dollars! No currency conversion necessary! 😊
If I want to invest in ZEA, do I place them in RRSP???
For ZEA or any ETF in Canadian dollars, it doesn't matter the account type. TFSA or RRSP would be treated the same, you can't avoid international or US withholding taxes if the ETF is in CAD
I have a whole video breaking down this important topic here =)
th-cam.com/video/IlSEg6Fux_A/w-d-xo.html
Hi there! thank you for the informative video. Do you buy ETF's anytime or you wait until it nears to its 52 week low. What is your strategy on " WHEN to buy a ETF?
I'm against trying to time the market when it comes to stocks, even more so when it comes to ETFs!
Since ETFs contains so many holdings, you don't generally see as many big swings up or down and trying to time the performance of 150 stocks is virtually impossible
So no I buy the same ETF rain or shine, as long as I'm focusing on the long term growth! Time IN the market beats timing the market =)
Thanks so much. I am a beginner in Canadian market. Want to start with 1000 cad. Currently looking at short term goals around 3-6 months. Coyld you pls suggest some stocks if you have time?
By the way, you're doing a great job!! Would say a service to society. 🙏🙏🙏
Hi Chief
What a better investment between US reit's ETS And CAN ones ?
Don't pick one or the other, it's important to have both!
@CanadianTShirt Good advice thanks.
Do you talk about good US Ets reits in a video?if not ,whitch one you would go with.
Yes there are a bunch of US REIT ETFs, one that I invest in is USRT
@CanadianTShirt thank you very much
@@fahdbensghir5478 happy to help!
Hi Adrian thank you so much for this informative video. But I have question regarding ZSP -this etf is similar to VFV so this etf should be invested in TFSA and FHSA due to 15% withholding tax (if there are any differences please explain) ? For RSP I should stick to VOO
Correct, it is a CAD ETF that holds US holdings so it will face that 15% withholding tax the same as VFV. You will see this in the distribution breakdown on the BMO website (foreign taxes withheld)
In a TFSA or FHSA, sure the CAD version like ZSP or VFV is fine. But in an RRSP, I would go with a USD version like VOO to get that full dividend =)
@@CanadianTShirt thank you so much :)
@@garnishyourcurryshorts happy to help!
Hello Adrian! Been watching your videos for quite some time. Fellow Canadian here, and you have helped me tremendously! I have a question for you. Do you happen to invest in fixed income ETF's like ZAG or ZDB? I recently discovered these and was thinking of adding them to my TFSA portfolio but wanted to get your take on them first and foremost. Any advice you have would be greatly appreciated:)
I have a very small position in bond ETFs such as ZAG and ZFL. However at my age with my goals, bonds don't really fit very well. They will be more important to me years or decades later as I approach retirement!
Another thing to consider is short term bond ETFs, I use these for my short term savings goals, I talk about this in detail in this video here (ticker symbol ZMMK)
th-cam.com/video/8o05hFWHwQQ/w-d-xo.html
@@CanadianTShirt Thank you so much for your response:) Appreciate your insights here
@@erikacarmichael9989 happy to help!
Hi Adrian! I appreciate this video even if it's sponsored by BMO. Most dudes on here would recommend index funds by Blackrock or Vanguard, which are both American companies even though they have offices here in Canada. Given how much power and wealth those two corporations have amassed I'd rather put my funds in a sound alternative. I'll definitely look into buying more BMO ETFs for my portfolio. So far I only have ZSP among my Vanguard and Blackrock ETFs, but I'll seriously consider adding most of your other recommendations to my portfolio at some point in the future.
Would you consider doing a video about bonds and bond funds in the future? I know they're not very good at wealth generation for young people, but they might come in handy in the future if market conditions change drastically. Also, what is your opinion on market cap weighted index ETFs vs. equal weight index ETFs?
Oh don't get me wrong, Vanguard and Blackrock also have great ETFs and I have spoken about their ETFs countless times over the years! And to be honest, I would be open to working with them as long as they gave me freedom to say what I want, criticize them when it's warranted and be true to myself and my audience. That's what BMO does and that's why I agree to work with them. Plus as you say, it helps to stick up for another Canadian company 🇨🇦
Regarding bonds, I have made a few videos about them but for my stage in life, bonds aren't a priority at all. As I get closer to retirement, that will change although the few bond ETFs I do have are ZAG and ZFL but it's a tiny position
I do like equal weight ETFs since they give me more exposure to the small players! For example, in my old video here on the best REIT ETFs, I compare a BMO, Vanguard and Blackrock fund and BMO is actually equally weighted which makes it stand out among the rest, check it out! =)
th-cam.com/video/LQBjOpLedpo/w-d-xo.html
Any thoughts on ZGRO?
It's similar to ZEQT which I cover at the end of the video. But ZGRO takes it one step further and also includes bonds as well =)
I dont get what people are mad about, you're just informing us as usual about a couple of good quality etf's, still up to us to pick which one to invest in lol. Anyways thanks as always, small question, does it matter if I buy during market hours or outside of those? I work by night and Im almost never awake during the market hours
Thank you for those kind words, I'll admit I was a little taken back by how angry some people were in the comments... If it's anonymous trolls, I don't really care but when it's long time viewers who I've built a relationship with over 4+ years, honestly it was a little disheartening 😕
As always, I would NEVER let anyone make me say something dishonest or sell something I don't believe in or personally use myself. No paycheque is worth losing that authenticity. And to focus on the positive, the majority of the comments have been incredibly kind and supportive like you Youssef! 🙏
And to answer your question, yes if your brokerage allows pre-market hours or after-hours trading, then all of these ETFs can be bought then. Just keep in mind that when trading after hours, the volume (# of people who buy and sell) is MUCH lower so there's a chance you wouldn't even be able to buy since no one is currently looking to sell
I have a whole video on trading after-hours and all the things to consider, check it out =)
th-cam.com/video/S06SXPvWB0s/w-d-xo.html
Berkshire all the way. There is a canadian hedged version now. What more could you want for long term. I sleep well every night.
Berkshire is a great holding! I don't own any shares directly but I have exposure through various ETFs like ZSP
I still wouldn't go all in on Berkshire, you still want other exposure as well, especially international
I want to get started investing in ETFs, however looking at the current price, they are all at All-time-highs. Would it be wise to buy at this price or should I wait? On the other hand, I don't want to wait any longer as I have been delaying it for a long time.
I do not recommend timing the market! It can't be done!
Especially for ETFs like this, as long as you are holding for the long term (5+ years) I am comfortable buying them at any price, even all time highs
Check out my video here on Waiting for the Dip vs Dollar Cost Averaging =)
th-cam.com/video/h9G1CV-oujI/w-d-xo.html
@CanadianTShirt Appreciate the response, thank you
@@pmc89 happy to help!
I am new to investing and haven't invested in international markets. I would like to buy some international index ETFs and am wondering what account these should go in (RSP, TFSA)? I invest through Questrade. Am I able to invest in international index ETFs through Questrade?
For international ETFs, there's no way to avoid those withholding taxes. We only have a special tax treaty with the US so that's why I hold US dividends in my RRSP to waive those taxes. But for international, you can't avoid them
And yes absolutely! All of these ETFs I bought through Questrade as well as Moomoo =)
@@CanadianTShirt Thanks for your reply! Also, I wondered why your strategy includes having a larger portion of Canadian and US Index ETFs vs. international index ETFs? Are they comparable in terms of security? Or maybe the reason is the withholding tax issue with international ETF?
I just know and understand the Canadian and US market much more so than international. Also these industries tend to be less susceptible to foreign policy and international regulations
Bottom line is invest in what you know and understand =)
Yes spread and I say thank you ❤
You got it! Diversification is the name of the game! =)
I have a another question too
Do the etfs tracks the index accurately and effectively?
Means if the index is up 20% do the price of etf share will also be up 20%? And also tell me about the long term growth also? Much love and respect to u 🔥❤️♥️
Absolutely they do! That's all these Index ETFs are trying to do is follow the index! So yes if the index rises 10%, the ETF will also rise 10% =)
@ 🙏
Glad I could help! =)
BMO is a great ETF provider. I trust BMO for my investing needs.
They're one of the best ETF providers in the business! And it's nice that they're Canadian too 😊
Would be great if you can release one of you’re usd investments as a preview visible for users that are not currently members
Oh I've showed my RRSP portfolio several times in free videos! But if you want the full 30 minute breakdown with the monthly updates to my RRSP, I do that in my members-only videos
great video as always. as a beginner in investment myself and having maxed out my registered account RRSP and TFSA, what ETF's would you recommend me please to invest in or consider and with which platform?
Congrats on maxing out your tax sheltered accounts! So now you are investing in your non-registered?
From a tax standpoint, the most tax favourable income is capital gains followed by Canadian dividends so all the ETFs on this list fall in that category (growth focused)
Hello from London Ontario and thank you for another great video. I appreciate your response to the comment above re Bonds. I had the same question. I'm also curious about what proportions you assign to each of these etfs. I'm also very fortunate in that my work provided a pension (HOOP) and would love to see a video with your take on investment strategies for those of us who have a pension. Thanks again!
Hey Josh! I used to live in London for a few years when I was doing my post-grad studies! I lived near Oxford and Wonderland 😊
Great question! But I have to give an annoying answer 😂 Your proportion will depend entirely on your situation, age, time horizon, risk tolerance etc! So what works for me most likely won't work for you! So take inspiration from my approach and understand my reasoning but never try to copy mine. You gotta make it tailor-made for you and your family 😊
But to give you a rough sense of numbers, I would say about 40% of my portfolio is Canadian market, 40% in US, then the rest in international. And a tiny amount in mid-cap and small caps. Hope that helps =)
Regarding the pension, make sure you understand the underlying portfolio of your pension fund. That way you could choose to either replicate it or build a portfolio that compliments it without too much overlap, the choice is yours!
@@CanadianTShirt awesome! I came here for grad school and stayed. Guess I'm a fan of purple! Recommend any good financial planners in the area?
i would like BMO to make all their ETFs NCF ...(.no charge funds) there are a few i want to purchase but ?
Oh you mean if you use BMO's investing platform? I don't use them
I buy my ETFs with Questrade and Wealthsimple, both of which are commission free for ALL ETFs, not just the BMO ones! =)
Apologies, been a troll of late. You don’t deserve it. You work hard. I will strive to be better
Thank you Vic for the apology, I do appreciate that. I went over 4.5 years before doing a single sponsorship on TH-cam and believe me, I still feel a little "icky" doing them. Even if it's with companies that I love like Questrade or BMO ETFs. But the reality is that this is my livelihood, TH-cam doesn't pay what it used to and I decided long ago NOT to sell a course. So sponsorships are the main way I can keep this channel running. But you have my word that I will only ever work with companies I personally use and believe in 100%. You will NEVER see me promoting crypto junk, or pumping a meme stock or promoting something I don't believe in. If you ever catch me doing that, please call me out! 😊
Don't forget there leveraged index ETFs like HFU (2x leveraged bull big candian banks), HSU (2x leveraged bull sp500), and HQU (2x leveraged bull NASDAQ) HZU (2x leveraged bull silver)
In a bull market these ETFs will excellerate growth
I only promote ETFs that I personally invest in. And I certainly don't suggest leveraged ETFs to a beginner investor. Yes there is potentially more growth but also significantly more downside. This should only be tried by experienced investors who are aware of the risks
Most of my investments are in ETFs which I recommend to the older guys out there. Thank you Adrian. Simplicity at its best.
You got it Enid! I love a hybrid approach, individual stocks PLUS ETFs but if you gotta pick one or the other, ETFs are definitely the safer bet
And much less stressful! 😊
@@CanadianTShirt absolutely!
🙌🙌
@@CanadianTShirt hey I have question is 0.55% mer for my whole entire portfolio good or should that come down more ???
Great info as always Adrian. I’m mostly invested in blue chip Canadian stocks and mutual funds that we both know have higher management fees, (yes I’m old) lol. I’m looking for deals in this super heated market. I think I will do some research into these interesting etf’s 🙏
You got it! My portfolio is similar, the backbone is the blue chip stocks (but not just Canada, you gotta throw in some US and international as well)
And no worries! I started off my investing journey with mutual funds as well! This was over a decade ago but once I discovered how much I was paying in annual fees, I left and never looked back!
Ya I personally own all of these ETFs (or equivalent versions) across all of my accounts. I believe that you need exposure to each of these sectors so that you can benefit in any market condition, so use this video as a starting point for your own research! 😊
I appreciate your videos!! Your videos are helping me change my life!! 🙌
Wow! Thank you so much for those kind words! I'm so happy to hear that my videos have made an impact! 🙏
Keep it up buddy! Let's built long term wealth together! 🙌
hey I have question is 0.55% mer for my whole entire portfolio good or should that come down more ???
That's not bad at all! Again it depends on what you're investing in! Paying 0.55% for a broad Canadian or US market ETF is definitely too high. But for international or more specialized exposure, that's very reasonable
@@CanadianTShirt unfortunately no it’s a mutual fund The invest in 10 different ETFs and I added up all the MER’s totalling 0.86 but the mutual fund MER is 0.55 can you explain why?
Oh well it's basically a weighted average. If the largest holder has a lower MER, it brings down the overall average
@ thanks for the information I appreciate your content. One last question what is your portfolio MER
What is the MER of my portfolio? That doesn't really make sense since half of my portfolio is in individual stocks which don't have an MER
Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
I think you're on the wrong video....
How are you doing Adrian?
Busier than ever! But that's just the way I like it! 😎
How is life on your end?
@ doing great with your guidance
@@kchaitanya39 that's what I LOVE to hear! Let's grow together! 🙌
@ yayy
Watchout for some BMO products that double dip ETF embeed inside another ETF payinr MER on both
I touched on that at the end of the video, it's another reason why I personally don't hold ZEQT. It's an ETF that holds other ETFs so you effectively are paying an MER twice
I prefer to have full control and customize my ETF portfolio. But don't get me wrong, these all-in-one ETFs are still WAY better than traditional mutual funds! At the end of the day, it's a personal preference =)
@@CanadianTShirt agreed! Not everyone is an investment nerd like we are, so for those people, all in one ETFs are a good choice. Personally, I learned about all this stuff before the all in one ETFs came along, so I just can’t bring myself to make the switch, because like you I prefer to have full control over my portfolio, and I’m frugal! The all in one ETFs cost more than buying the underlying ETFs directly.
@@CanadianTShirt My understanding is that while you are technically paying the MERs of the underlying ETFs, the overall cost is consolidated into the single MER of XEQT, making it a more straightforward and cost-effective investment option. Maybe that is what you are implying also in your reply. Or do you mean that a total of the various sub-ETFs will add up to a much higher MER, meaning MER of 0.20% of ZEQT + MERs of various sub-ETFs?
Oh you are absolutely right, the posted MER of XEQT is what you pay. But what I'm saying is that if you took the weighted average of all the underlying ETFs, you would get slightly less than that. After all, the fund managers of XEQT need to earn a profit as well. You are paying a bit of a premium for that convenience. Hope that makes sense =)
I just noticed that i got used to Adrian without glasses 😅
hahaha I still haven't gotten used to it!
I still reach for my glasses sometimes out of habit 😅
@@CanadianTShirt hahahah
But this surgery was truly life changing! 🙌
Hey man - in another video you say buying VOO is better than buying VFV as the MER is three time 0.09%. In a different video you now say BMO’s ZSP is good which is the same as VFV just a different company. How does your story hang together? and why should people trust you?
Don't listen to those losers, you did very well
Thank you for your support! 🙏 Normally I don't care when I get hate from anonymous trolls but I'll be honest, it is disappointing and disheartening when I get personal attacks from long time viewers who I have helped and answered their questions for many years. Thankfully this is a small minority 😊
@@CanadianTShirt Think of it this way: they're entitled to their opinion. Doesn't mean you have to listen to it ;)
Well said 😊
How to set up BITCOIN account?
I think you're on the wrong video lol
But in case this is a sincere question, just find a broker that supports crypto coins or crypto ETFs and buy them there
Hamilton ETFs are great for canadian investors.
I don't personally use them, they don't fit with my investing goals but they do have some interesting products for income oriented investors
What are your thoughts on VOO?
You can't go wrong investing in an S&P 500 ETF (like ZSP which I covered in this video) Now VOO is the USD version of that so it has pros and cons
On the plus side, it has a slightly lower management fee and if you hold it in your RRSP, you can save that 15% withholding tax on those US dividends. But on the downside, it's in USD so you have to deal with currency conversion
I have a whole video breaking down VOO and USD vs CAD versions of US ETFs, check it out =)
th-cam.com/video/IlSEg6Fux_A/w-d-xo.html
Another downside to US-based ETFs like VOO & VTI is you have to buy a lot more of them in order to take advantage of the DRIPP option if you are using a brokerage that doesn’t allow you to buy partial shares. That’s why if you have a smaller portfolio, you might as well just stick with the Canadian based ETFs until you have a larger portfolio.
How about zst
That's a bond ETF, I was only talking about equity ETFs here (that contain stocks)
Bonds are generally lower risk and good for shorter time goals. The ETFs in this video are for long term growth! =)
Thank you for the reply
Happy to help!
The best performing market over the long term is USA. Just buy s&p 500 ETF and do the dollar
Cost averaging strategy and you’ll be fine. No need to think about Tesla or NVIDIA and the mag seven being too rich. Once you set it up twice a year, just forget about it and enjoy life.
Yes the S&P should be a core of everyone's portfolio! But you should still expand to other markets including Canada and international!
Ok but how to avoid conversion charges?
I have a whole video about the cost of investing in USD and how I avoid it with Norbert's Gambit! =)
th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
Great video. Can you do a followup with what ticker you own and what percentage of each and what 10 year returns of each? Thanks.
Check out my Members-Only videos for a full breakdown of my investing portfolio, each stock and ETF. I occasionally release free versions of these videos too, check out the latest one from last month =)
th-cam.com/video/JqZDb3gVqu8/w-d-xo.html
Thanks Adrian.
Happy to help!
What's your opinion on xeqt?
It's very very similar to ZEQT which I covered at the end of the video
These all in one ETFs are a great, hands-off approach. But at the end of the day, they are just a collection of a few ETFs. Personally, I'd rather have full control and buy those ETFs separately but it's a personal choice =)
BMO ETF sponsored video doesn’t look good on the channel. It’s like MKBHD making a video on Samsung phones sponsored by Samsung. My humble opinion
Well I hope you can appreciate how selective I am with sponsorships.... I've been running this TH-cam channel for almost 6 years now and I've only done a grand total of 3 sponsorships. And each of them are products and services that I personally use and I whole heartedly recommend to my family and friends
And I've been talking about and recommending BMO ETFs for YEARS, totally for free. So it's a natural fit and not at all insincere to be paid this time, again only to endorse funds that I personally invest in
For me, credibility and authenticity is the most important thing. Which is why I turn down dozens of sponsorships on a daily basis because I would NEVER sell crap to my audience just for a paycheque. I hope that helps put your mind at ease 😊
@@CanadianTShirt Yes. Your videos have helped me, my family and friends a lot. I cannot thank you enough. I appreciate all the hard work you put into this channel for our community.
I appreciate that! Thank you for sticking with me and for sharing my videos with your family and friends 😊
HPYT I'm going with 😎😎
Thx 😊
I'm glad you found it helpful! =)
operation cash out is in effect
What are you talking about.... this video is for LONG TERM investing. Money you won't need for decades. If you want to "get rich quick" you're in the wrong place
Lot of those companies paid dividends. How is the dividend affect the ETF and does the ETF pay a dividend?
Yup! The ETF will collect all the dividends from all the underlying companies and then distribute out those dividends every quarter =)
Nice!
Ok what about the decay? The the reorg of holdings at every quarter
Does that drop the share value ?
👏
Thanks for watching! =)
i invest in nvidia
I do too! I hold individual shares of Nvidia plus I get extra exposure through ETFs =)
Just buy XEQT
I cover those all in one ETFs like XEQT or ZEQT at the end of the video!
Great option! I just prefer more customization and control =)
You forgot to mention Hong Kong.
@CCP_zhongguo_sai_B you mean in the international ETFs? Yes they include Hong Kong exposure too
My 3 fund canadian etf funds are HXS, HXQ and XDIV dollar cost averaging weekly and I dont pay that 15% withholding tax because dividends are reinvested by the funds ....
That's a well rounded portfolio! I would throw in some international exposure as well =)
Great info, thanks Adrian!
Thanks buddy! Glad you found it helpful! =)