Highlights
- Discover the most popular Canadian funds Passiv users invest in
- Top ‘set-and-forget’ funds for investing globally, in the US, and in Canada
- The ‘all-in-one’ balanced fund Passiv users swear by!
As a passive investor myself, I love knowing what other set-and-forget investors are using to grow their wealth!
We’ve got the roundup of the top 5 most widely used buy-and-hold Canadian ETFs in Passiv portfolios, starting with the #1 most popular!
XEQT.TO
It’s easy to see why this fund tops the charts with Passiv users!
If you want to invest in the global market but don’t want the hassle of managing multiple funds, this might be the one for you!
Here’s what to love about XEQT.TO:
🌍 Invest in the global market
This 1 fund gives you a slice of many businesses from countries all over the world (without having to pick them yourself)
📈 Built for growth
100% invested in stocks to maximize growth potential. And the management fees are just 0.20%, perfect for long-term investors
⚖️ Stay balanced
Minimize risk by automatically adjusting your investments to keep the right mix of companies
🎯 A good selection
It has large, medium and small companies so you get the stability of established companies plus growth opportunities from up-and-comers
Learn more about XEQT.TO iShares Core Equity ETF Portfolio
VFV.TO
It’s no surprise to see that this fund is a favourite!
VFV.TO gives you a piece of 500 top US companies. This is known as the S&P 500, and it acts like the ‘scorecard’ for the US stock market.
When people want to know how the stock market is doing, they look at the S&P 500. It’s kind of a big deal - and you can own a piece of it!
Here’s what to love about VFV.TO:
🇺🇸 500 big American companies
You hear about (and probably use products from) these companies every day. They are basically the economic engine of the States
🧽 Self-cleaning
The S&P 500 only includes the 500 largest public companies. If a company starts lagging, it’s swapped out for a better performer
👋 Hands-off fund management
No fund manager needs to choose what goes in the S&P 500 - it already exists, this fund just follows it. This makes it very affordable
🌐 More than just the States
Many companies in the S&P 500 companies operate internationally, so you get *bonus* global reach
Learn more about Vanguard S&P 500 Index ETF
VEQT.TO
This is pretty similar to the most popular fund we first talked about, XEQT.TO.
It’s basically like, do you want running shoes from Nike or Adidas? In this case, it’s whether you want a fund from BlackRock or Vanguard.
They are both growth-focused global funds, but with minor differences.
Will the average investor notice a difference between the two? Not likely!
At the time of this writing, the management fee for this fund is slightly higher for this fund compared to XEQT.TO.
Here’s what to love about VEQT.TO:
🌍 Invest internationally
This fund gives you a wide range of stocks from around the world. You can invest in this 1 fund, without putting all your eggs in one basket
📈 Long-term growth
Designed for investors who want growth by going ‘all in’ on stocks. It’s ideal if you’re investing for the long term (like 10+ years) and have time to benefit from the ups (and downs) of the market
⚖️ Automatic rebalancing
Keep your investments on track by adjusting how much of each company you own. As markets shift, the fund automatically adjusts to stay in line
🍹 A solid mix
It covers many sectors like technology, healthcare, finance, consumer goods, and more. This provides a buffer because when one industry isn’t performing, others can be thriving
Learn more about VEQT Vanguard All-Equity ETF Portfolio
VGRO.TO
This is the first fund on the list which isn’t all stocks!
This fund is focused on growth, but is more balanced than the other ones because it also includes some bonds.
Bonds can be an important part of your investment strategy.
They make your portfolio more stable since they have fewer ‘ups and downs’ than stocks do. They also give regular cash payouts.
If you’re dipping your toe into the water with self-investing or you want a solid long-term investment, VGRO may be your way to grow.
Here’s what to love about VGRO.TO:
📈 Balanced growth
You get a high proportion of stocks (equities) that give you growth, and also the ‘safety net’ of bonds that give you reliable income
🎁 All-in-one solution
Get a completely diversified portfolio, just with this one fund
🎢 Less of a rollercoaster
Introducing bonds helps keep things steady, even when the stock market is going up and down like a rollercoaster
💰 Tax-efficient
It has a healthy mix of Canadian funds alongside global investments to improve tax efficiency
If you love VGRO.TO, here’s an idea! 💡
While an all-in-one ETF like VGRO.TO makes it super easy to start investing, it might not be your best long-term choice if you’re looking to save on costs.
Instead of choosing this 1 fund, you could instead select a few different funds from this list and save on management fees.
You’ll see these fees listed under ‘MER’ (which stands for Management Expense Ratio) on each fund’s website. The lower the MER, the more money you keep!
You pay for the simplicity of an all-in-one ETF with a more expensive MER:
VGRO.TO: 0.24%
Instead, you can get a combination of these funds and save:
🌎 XEQT.TO: 0.20%
🇺🇸 VFV.TO: 0.09%
🇨🇦 VCN.TO: 0.05%
Over time - especially as your investments grow - even this small difference in MER can add up to thousands of dollars.
Plus, you have more flexibility to choose the funds that best fit your goals.
It’s so simple with Passiv!
Just set up the percentages of each ETF you’d like in your portfolio, and Passiv keeps it balanced automatically.
Learn more about VGRO Vanguard Growth ETF Portfolio
VCN.TO
Oh, Canadaaaa!
(Did you sing that in your head? 😄)
This is our very own all-star lineup of homegrown Canadian companies.
If you’re looking to add more Canada to your portfolio, this is a great choice!
Here’s what to love about VCN.TO:
🇨🇦Canadian companies
You get a wide range of companies, from small players to big names. You get a little piece of nearly every major Canadian company
🏢A variety of industries
Banks and energy are a big part of this fund, but you also get other sectors like technology, healthcare, consumer goods and utilities
🏔️ Stability
We may not have the flashy appeal of the American market, but we have stable and reliable industries like banking and natural resources
💸 Cash payouts
You get a nice little quarterly cash payout from dividends. (Easily reinvest them using Passiv!)
Learn more about VCN Vanguard FTSE Canada All Cap Index ETF
Share the love of investing!
Many people start learning about investing through friends and family.
You might remember how overwhelming it was to get started - and one of the biggest questions people have is, “What should I invest in?”
Share this article with someone who could use a hand getting started with self-investing to give them a head start!
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