As long-time readers will know, I review my model portfolios once a year and, if necessary, make minor changes when better or cheaper funds have been launched. I made no updates for 2018 or 2019, except to add the new Vanguard and iShares asset allocation ETFs as a fourth option last year.
For 2020, however, I’ve done a little remodelling.
Before explaining the changes, I’ll offer my usual caveat. These models are intended to be a default choice for investors who aren’t sure how to build a diversified portfolio, or are confused by the enormous variety of funds available. The specific fund choices are not definitive: in almost all cases, the major ETF providers (Vanguard, iShares and BMO) have options that are very similar and equally good. The changes I’ve made over the years have usually been subtle, with minor reductions in cost or improved simplicity. If you’re currently using one of the older portfolios successfully, please don’t feel the urge to switch.
All right, on to the changes. The new portfolios and their backtested returns (now going back 25 years) can be found on the Model Portfolios page.
Tangerine gets squeezed
First off, I’ve removed the Tangerine Investment Funds, which had been a staple of my model portfolios for close to 10 years.
For investors with a small RRSP or TFSA and a desire to be almost entirely hands-off, the Tangerine mutual funds used to be an excellent choice. But there are now much more attractive options, even for those with modest accounts and a desire for simplicity. Despite the competition from robo-advisors and an industry-wide trend toward lower fees, Tangerine has stubbornly kept its fund MER at 1.07% for more than decade. It’s hard to justify that anymore.
The E-Series gets an A
For those looking for an alternative to ETFs, I’ve kept the TD e-Series funds, which are now more attractive than ever.
In 2019, the funds changed their structure and now hold underlying ETFs rather than individual stocks and bonds. This change came with a modest fee reduction of 0.05%, but that wasn’t the big news. More important was the announcement that these funds—which for almost 20 years were only available to TD customers—are now available through any online brokerage. For index investors who want the benefits of mutual funds over ETFs, the e-Series funds are the best choice, by far.
ETFs just get easier
Finally, my model ETF portfolios have been simplified even more, and I’ve bumped them up to Option 1, which means they should be the first one to consider.
ETFs still aren’t right for everyone, but the launch of “one-fund portfolios” (also called asset allocation ETFs), combined with the low- and no-commission trades at several brokerages, have made them more appropriate even for small portfolios. For the vast majority of DIY investors, I believe these one-ticket solutions are the best way to build a diversified portfolio that balances low cost with ease of maintenance.
To add more flexibility, I’ve also included options for balanced portfolios that don’t have a ready-made solution—for example, there is no single ETF with a 50/50 mix of stocks and bonds. So I suggest some two-ETF model portfolios, which combine a bond fund and a globally diversified equity fund. These, of course, can be used to build a portfolio with any asset mix you deem suitable.
For example, the Vanguard Balanced ETF Portfolio (VBAL) is 40% bonds and 60% stocks, while the Vanguard Growth ETF Portfolio (VGRO) is 20% bonds and 80% stocks. If you decide you want something in between, my new model portfolios suggest a 30% holding in the Vanguard Canadian Aggregate Bond Index ETF (VAB) and 70% in the Vanguard All-Equity ETF Portfolio (VEQT).
These two-fund portfolios will require occasional rebalancing, but the trade-off is they actually have slightly lower fees that the one-ticket asset allocation ETFs.
Models are not optimal
I’m expecting some pushback about the changes to the model ETF portfolios. After all, the MER on the one-fund solutions is up to 0.10% higher than that of the three-fund portfolios I’ve been recommending for the last few years. There are still many DIY investors who believe that MER is the only factor to consider when building a portfolio.
But let’s remember that a model portfolio, by definition, is not designed to be optimal—if such a thing even exists. It’s a default for investors who are looking for a place to begin. And indeed, even more experienced DIY investors may benefit from using asset allocation ETFs, since they enforce disciplined rebalancing, reduce transaction costs, and discourage tinkering. All of these benefits are easily worth a few basis points of MER.
If you’re managing a multi-ETF portfolio successfully now, you should continue to do so. But if you’re new to DIY investing—or if you’re struggling to maintain a more complex ETF portfolio with discipline—embrace the simplicity.
@Kelly: The annual fee on VAB is 0.10%, so combining VAB + VEQT would have a total fee that is slightly lower than any of the individual asset allocation ETFs. But to be clear, I would still recommend using a single fund if you can. The model portfolios only recommend using two when there is no option for using one (for example, 50% or 70% equities).
Hi Dan, thank you for providing one stop blog to learn about personal finance. I use TD direct investing and they change $9.99 commission per trade. What would be a reasonable commission percentage to target for dollar cost averaging in a year?
Example: paying 1% commission seems a lot ($9.99 for every $1000 invested).
@Gautam: Thanks for the comment, and I would agree that 1% is too much. I’d suggest a minimum of about $5,000 per trade would be more appropriate. If you’re trading frequently, the e-Series funds would be a better choice for at least part of the portfolio.
Hi Dan, thanks for all the great info you provide, it is very usefull. When do you expect to present your 2021 Model portfolio? Do you expect significant changes from 2020? Having way too much time on my hands now led me to my yearly rebalancing and I leaning towards moving to a single ETF across all my accounts: RRSP, LIRA,TFSA, and taxable account. I’ve done well using your suggested ETFs in the past but I want to make it simpler. Can I use the same one ETF for all my accounts? I’m looking at either VBAL, VGRO and VEQT based on your 2020 model.
@Normand: I usually report on the model portfolio performance and provide any updates in January each year. I don’t anticipate any significant changes. You should absolutely feel comfortable holding the same asset allocation ETF across all your accounts. Just be aware that there are huge differences in risk between VBAL, VGRO and VEQT, so make sure you thoughtfully decide which one is appropriate.
Would having a portfolio like 70% HXS, 10% HXT and 20% XEC be more tax efficient in a taxable account?
I’m guessing someone has asked this question but I can’t find it in the comments. What do I do now with my previously recommended multi ETF portfolio (ZAG, VCN, XAW)? Leave as is and occasionally rebalance, with the majority of new investment funds going into selected one-fund portfolio? Selling them all off sounds too scary . .
Thank you!
@Laura: See the opening paragraphs of this blog post. There’s no need to replace your current portfolio if you’ve been able to manage a three-ETF portfolio successfully.
That said, if your holdings are in a registered account (i.e. no tax consequences) I’m not sure why the switch would be “scary.” You can sell the current hidings and immediately reinvest the proceeds in an asset allocation ETF. The cost is minimal and the timing makes no difference since you would not be changing your asset allocation significantly, and you would only be out of the market for a few minutes.
Hi Dan,
Im very new to DIY investing. Just looking at your model portfolios for the Vanguard growth ETF portfolio. If I’m understanding correctly, if I’d like to model my portfolio around the VGRO’s 20% bond and 80% stocks breakdown, is it as simple as me putting what I want to invest all into VGRO? I was under the impression that I’d need to buy 20% VAB and 80% VEQT. Any help would be appreciated!
This would also then make rebalancing quite simple then, I would assume? As I’d only really be investing in one ETF?
Thanks for your time and assistance!
Colin
@Colin: It really is as easy as just buying VGRO if you want 80% stocks and 20% bonds. One trade, no rebalancing required. Combining VAB and VEQT is only necessary if your target asset allocation is not available in a one-fund product (for example, 50% or 70% equities).
Hello Dan,
I am just getting started with some long term investing as a 22 year old. I see that you update your model portfolios every year. Should I wait a month for any changes you might make, if you are thinking about some? If not, I am looking into opening a Questrade account (which I am doing after I post this comment) and going with the Vanguard Asset Allocation ETFs you have posted on your model portfolios. I see the Growth Portfolio is an 80/20 ratio, but there is also VEQT which is 100 / 0. I am not expecting to touch this investment for at least a decade (hopefully more), except for rebalancing. Would you suggest going more aggressive like 90/10 or 100/0, compared to 80/20, for me?
Thanks so much for any response! I appreciate the work you have done. :)
I read all of the comments and see that you’re not making any significant changes in 2021, and I took the vanguard investor test and it recommended VGRO which I think is maximum. I guess I would like to ask, as a 22 year old who saves well, if you would recommend (or strongly recommend) VGRO or VEQT. Also, there are a couple Questrade promotions for people signing up for an account – one is 5 free trades and the other is a month of free trades plus streaming level 2 data. https://www.questrade.com/about-us/programs-promotions should I go with the first? (I am wondering if it will expire at any point… from what I understand there is not a cost when buying VGRO or VEQT, which is what I’d be doing, not selling anything).
Thank you! Cheers!
Hey Dan,
I’m 40 and have both an account at TD and Tangerine. At TD, my RRSP and kids RESPs are in the TD comfort funds. I plan on moving these into a CCP portfolio. My tfsa and rrsp at Tangerine are in their index funds.
I plan to consolidate everting at TD. I’m stuck deciding whether to move everything into the core e series or go with TDs one click options. Is the difference here minimal?
Also, with my kids resps, do you know how the education grant would be paid if I went the one click route for them? Or would it just be easier to go with the eseries and have it disbursed into a money market to be reinvested manually among the core funds?
Thanks in advance and happy New Years.
Kind of a specific question, but out of all the mutual funds available for purchase on a discount brokerage, which are the best all-in-one passive portfolios? For now, I use cib372 – CIBC Balanced Growth Passive Portfolio series F (I think they are only purchasable on Questrade), but these portfolios are severely limited in the risk options, none of which fits my risk tolerance profile (the riskiest one is 35% bonds, which is too much for me). So I have been looking at the big banks all-in-one passive portfolios but none of the ones I have found have a clear investment strategy in the prospectus.
@anon: I have not looked deeply into balanced index mutual fund options recently. With the arrival of asset allocation ETFs these are increasingly less useful. Why not just use VGRO/XGRO if you’re looking for an aggressive index portfolio?
@Shane: When you say you want to consolidate at TD, make sure you appreciate the difference between a TD Mutual Funds account and a TD Direct Investing account. I’m guessing you currently have the former for your RRSP and RESP. With a TD Mutual Funds account you can use the e-Series funds, but you cannot buy ETFs. For that you’ll need a TD Direct Investing account. If you want to hold everything at TD, that’s what I would recommend, as this is much more flexible.
The TD One-Click Portfolios (which are ETFs, not mutual funds) include 25% actively managed funds, so they are not index funds. TD positions this as a strength: “Typically, all-in-one ETFs have 100% passive ingredients, meaning with TD you get more professional management.” I think you can guess what my opinion is. If you’re going to switch to ETFs, why not just use the Vanguard or iShares asset allocation ETFs? (Again, this requires a TDDI account.)
If you have an RESP at TDDI, the education grant will just get paid into the cash balance of the account. You would have to reinvest it manually.
Hope this helps. It might be worth calling TD customer service with specific questions before you make the switch.
@Vince: Thanks for the comments. Regarding VGRO vs. VEQT, this is my take:
https://www.moneysense.ca/columns/ask-moneysense/should-you-put-all-of-your-investments-in-equity-etfs/
I don’t think the promos at Questrade will have any meaningful benefit for you. As you note, ETF purchases are already free. And streaming Level 2 data is overkill for someone just buying one ETF every now and then. It sounds like those promos are designed for active traders.
Good luck!
@Canadian Couch Potato: I am not using VGRO/XGRO for my unregistred account due to personal reasons. These reasons being that i don’t want to track ACB and i also want all my accounts to be in Questrade for margin purchasing power. I thought about buying VGRO/XGRO and paying a tax advisor to deal with taxes, but the local tax advisor i visited wasn’t able to explain phantom distributions so decided to not count on this option.
As you can see, kind of specific circumstances but it’s hard for me to believe that nobody except me wants to find a good all-in-one passive mutual fund (preferably series f), yet i can’t really find anything on the web.
Hello Dan,
So your opinion for young investors is that if they (I) have any self doubt about ability to ride out a downturn (or multiple downturns), that they should go VGRO and not VEQT? I am curious how much information I would expose myself to by buying more ETFs every couple months, if it’s possible to avoid any information about the stock market in general to avoid feelings on upswings or downswings lol.
And yes! I will definitely redirect any friends I have with money to your website now. It’s done a lot for me :) I do not have very many friends who are saving like me but maybe in the future ;-;
@Vince: Yes, in general I recommend new investors start off more conservative until they get a feel for their own risk tolerance. Really, even VGRO at 80% equities is still aggressive. You won’t really know until the first time your portfolio falls 20% or 30% (or more).
Okay, cool! I still have a few days so I’ll think about it. One last question, seeing as there was a drop in the market earlier this year, would it be wrong to speculate that the next few months might cause downswings and to dollar cost average instead of lump summing it? Since you have other articles that say 67% of the time, the lump sum investment is statistically better and that I should avoid speculation like that period? (And that dollar cost averaging the initial investment is moreso to provide a sense of security, but the lump sum average is still better overall)
In one of Justin’s videos he chooses not to give his opinion about volatility of the market in the next few months. I guess I know what your answer is to this already haha. I’d be surprised if you recommended to not lump sum it or that you personally wouldn’t in this situation, at least from what I’ve read of your work
@Vince: I think you’ve guessed my answer about where markets are headed in the next few months. Less agree no one knows and there is zero value in guessing.
Investing gradually (dollar cost averaging) can make sense as a risk reduction strategy if you have a large lump sum to invest, such as the proceeds from a house sale. But for a young investor who is saving regularly, you will be dollar cost averaging for many years. Your entry point now will make virtually no difference over the long run. Once you have a plan in place, just move forward and try not to talk yourself out of it.
Thank you Dan! :)
Hello Dan,
I had been following your website for sometime now, but only really set things in motion last year based on your advice.
Currently investing into iShare based on your suggested model via QT under TFSA.
However, before that, I was investing into tangerine mutual funds under TFSA.
I just came across this piece and realized you have “removed” the tangerine from your recommended list.
I am currently debating if I should just sell the tangerine and put all the effort into QT.
I am aware that Tangerine recently put up 3 ETFs portfolios (Nov 11 2020), would you be able to provide your opinion/ analysis on them? (I know it is kind of new and not much info yet, and I was also thinking I will wait for you 2021 Model release before making any moves.)
Thank you
@Vincent: Thanks for your comment. I will be reviewing the new Tangerine funds when more information becomes publicly available. However, I can say that they are preferable to the existing funds due to their lower fees. Tangerine has told me that it’s easy to switch simply by logging into their your and clicking “Switch my Portfolio.” So that might be an easy first step, even if you eventually decide to move everything to Questrade.
Hey
I been doing TD E-Series for years now (I think since 2011). I use to contribute every month to them but I stopped that in 2020 as I know have a mortgage and my recent companies have had great RRSP matching programs( my current one gives me 125% matching) so after I do my company RRSP I don’t’ really have spare money to contribute more in a month.
If at tax time I do need some extra RRSPs I tend now to just buy ETFS via QuestTrade. I am wondering since I don’t invest monthly anymore into my RRSP if I should SELL all my TD Index funds and transfer them over to QT and buy ETFS with them or transfer them as IS to QT?
It sounds like the index funds now have underlying ETFS in them so maybe no point selling them and buying ETFS but maybe transfer them to QT would be a good option so I don’t have to deal with Easy WEB?
Or would all this just be waste of time?
@Chobo2: From what you describe, this decision is really just about convenience, so it’s up to you to decide whether it’s worth the effort. But in general, consolidating your accounts at one online brokerage is usually a good idea. If you decide to move everything to Questrade, I don’t believe you will be able to move the e-Series funds in kind. You would need to sell them first.
Hi Dan, thanks so much for providing this content, it is a huge help! I have been following your blog for many years now and have been managing one of your older model portfolios using 5 ETFs. I know you have mentioned there is no need to switch, but I really like the idea of simplifying my portfolio and moving to one of the new two ETF portfolios. The one thing holding me back is the significant up front cost to doing so, as I would need to sell all my existing holdings to make the switch. I am paying $9.99 per trade so across all my accounts this would cost me about $250 in trading fees. Wondering if it is worth making the switch or if I should just continue with the five fund portfolio. Thanks, Michael.
@Michael: In the long run it’s worth it to switch. Remember that going forward you will likely be paying far fewer trading commissions with one ETF rather than five, so you’ll eventually recoup the upfront cost. You may want to wait until the next time you contribute a lump sum that would have required a few trades anyway.
@Canadian Couch Potato
Thanks for your quick reply. Yeah that was my thought as well it would just be consolidation more than anything else. I do have a few questions.
1. When you sell a TD E Series fund what do you pay for a fee? I know with QT ETF is sort of free to buy ( if you don’t buy in like groups of 100 you got to pay like fee of like 20cents) and $5 to $10 to sell.
2. I guess if I can’t do a transfer in kind then I will have to sell and potentially I may lose a bit of money as by the time the transfer happens the market could be up (of course could be down).
3. Right now I am doing pretty aggressive in all my investing as I am 30 to 35 years away from retirement.
In my QT ETFS, I am doing a split of 10% ZAG and 90% XEQT.
In my company RRSP I am doing 60% Fiera US Equity Fund and 40% Fiera International Fund. As after looking at all the options in there those seemed to be the best option.
In TD e-series I am doing 25% CDN Index, US Index, CDN Bond Index and Intl Index. I actually would like to make this more aggressive and probably would get it in line with my ETFS.
If I sell my TD e-series what do you think I should as a split? Someone suggested
35% XIU
45% XEQT
20% Zag
I was suggested this as I really have no CDN Equity in my QT account or my company RRSP (as all the CDN ones I was offered seemed to have poor returns).
I am not too sure about the 20% Zag yet as not sure if it should be more 10% in my case. Like I said I got a long time before retirement so I thinking I should be aggressive for at least the next 25 to 30 years.
Thanks
@chobo2:
1. No, you won’t pay a commission to sell the e-Series funds: all mutual fund transactions at TD are commission-free.
2. Yes, if you cannot transfer the holdings in kind then you will be out of the market during the time it takes to make the transfer, which can easily be a week or two. As you note, this can work against you or in your favour. There’s not much you can do about that.
3. My recommendations can be found in my model portfolios. They include options for 80% or 90% equities, if that’s what you decide is appropriate for you.
@Canadian Couch Potato
3. I never seen a 90% option in your model portfolios can you point me to that. I have only seen is 80% (XGRO). Also I will have to look again but I have not seen anything like XIU where is is mostly Canadian Equities.
Thanks
@chobo2: The model portfolios can be adapted for any asset mix by combining VEQT/XEQT (all stocks) with VAB/XBB (all bonds).
@Canadian Couch Potato
Gotcha, just wondering why you don’t recommend something like XIU what is more Canadian Equity (looks like lots of banks)?
Also curious there is no mention about wealthsimple being a good broker for ETFS as it has zero fees selling or buying where QT has fees selling
@chobo2: Canadian equities are already included in the asset allocation ETFs. There is no need to add a separate holding.
I don’t recommend any specific brokerages: the model portfolios can be implemented anywhere.
@Canadian Couch Potato
Yeah I been looking more in detail what is in the ETFS you recommend (been reading your post on “Asset Allocation ETF Showdown: Vanguard vs. iShares”) and that they do have 25% to 30% Canadian Stocks.
If I do consolidate all my investments into one account and sell my index funds. I really only need to buy 2 ETFS (1 if i wanted the 80/20 split, but I wanted a 90/10 split)
TD CDN Index-e**
TD US Index-e**
TD CDN Bond Index-e**
TD Int’l Index-e**
would translate to just XEQT (90% of cash I get from from selling them) and ZAG (10% of the cash I get from selling them) ? Then just do rebalancing on those 2 ETFs when needed.
Hi,
I tried following the td e series portfolio but i switched canadian bond index e with td science and technology mutual fund? is that a good idea? i was also thinking to switch int index e with td health sciences mutual fund. However, i replaced US index e with nasdaq index e because nasdaq index e has higher returns than td us index e historically.
Hi Dan,
I really want to make my life easier. Been thinking about buying just 1 fund portfolio, VEQT. But just wondering if i should put it in tfsa or rrsp? Considering the tax implications.
And if i buy emerging market stocks, should it be in rrsp or tax free? Cad or US currency? Thank you so much! Ive been learning alot from your blogs and podcast.
@Reyvi: Thanks for the comment. The decision between TFSA and RRSP depends on your personal situation. I suggest googling “YFSA vs. RRSP” for article explaining this. In general, high-income earners benefit more from the RRSP, while those in a lower tax bracket may benefit more from the TFSA. The other important issue is that TFSAs are better for medium-term goals, and as you can make tax-free withdrawals. RRSPs should be used for long-term retirement savings only.
Emerging markets stocks are included in the one-ETF portfolios, all of which trade in CAD.
Hi there, just wondering when were you going to publish the 2020 returns? Thanks!
I’m completely new and fresh to all of this and I’m hoping to get some clarification. I believe I want to be handling my own ETFs vs doing robo investing. Just trying to figure out how I build my portfolio.
I’m a bit confused when trying to figure out this:
For example, the Vanguard Balanced ETF Portfolio (VBAL) is 40% bonds and 60% stocks, while the Vanguard Growth ETF Portfolio (VGRO) is 20% bonds and 80% stocks. If you decide you want something in between, my new model portfolios suggest a 30% holding in the Vanguard Canadian Aggregate Bond Index ETF (VAB) and 70% in the Vanguard All-Equity ETF Portfolio (VEQT).
Is this suggesting that I do a combination of either VBAL/VGRO or VAB/VEQT as my two main ETF investments?
Or do I take this link – https://canadiancouchpotato.com/wp-content/uploads/2020/10/CCP-Model-Portfolios-Vanguard-June2020.pdf
And invest into the appropriate categories and the appropriate percentages. I’m looking to be more aggressive and I can take the risk, so do I follow the VGRO model and go on my WealthSimple Trade app and invest 12% in VAB/4% in VBU/4% in VBG/24% in VCN and etc…
Please excuse my ignorance. Just finding it all very confusing and I finding it hard to get a clearer answer.
@Mark David: The PDF’s fine print explains: “ETFs printed in grey type are the underlying holdings of VCIP, VCNS, VBAL, VGRO and VEQT. They are presented here for information purposes only.” I would never recommend buying all of these individually.
If you want 60% stocks, you can simply use VBAL. If you want 80% stocks, it’s VGRO. If you want 70% you use VAB + VEQT. It’s either one ETF or two, never more.
Hope this helps.
Dear Dan,
I have been investing following your TD eseries model portfolio for the past few years. Recently i have been looking at ARK funds / vanguard and wanted to invest in some of those as well. I noticed that you didn’t include any 100% stock from vanguard. Between the Vanguard VFV and VSP (Cad-hedged), which one is the better option to get in your opinion?
Many thanks,
@Kirby: VFV and VSP are 100% US stocks, specifically. Either can be part of a diversified portfolio, but I would never recommend building an entire portfolio made up of this one asset class. Vanguard and iShares both offer 100% equity portfolios that are globally diversified: VEQT and XEQT, respectively.
Dear Dan
I have been wondering about the benefits of a 3/4 ETF portfolio vs an all in one when it comes to spreading assets across various accounts to minimize taxes and withholding taxes. I get that the MERS difference is minimal but what about the tax savings? I’m hearing more and more about using 1 etf (eg XGRO or VGRO) across all RRSP/TFSA/Corporate/other taxable accounts. Are the tax savings really that minimal that it’s not worth the effort?
@Thomas: For the vast majority of DIY investors I’d suggest using multiple ETFs to try to improve tax efficiency is not worth it. For starters, any savings in withholding taxes is likely to require you to use US-listed ETFs in your RRSP, which adds another complicating factor. Second, there isn’t even any agreement on asset location strategies, i.e. which asset classes should be held in which accounts. for the most part, adding more and more moving parts to a portfolio is counterproductive.
Amazing website Dan! I wish I knew about it years ago.
I can’t seem to find on your site any discussion about how to transition ones portfolio with age. Right now XGRO is appropriate but as I age I will want to transition to lower risk. Would I sell units of XGRO for XBAL and then eventually to XINC? This would be fine in a registered account but non-registered money would generate capital gains with each switch. Thanks!
@Dan too: Welcome to the site! A lot of investors have asked this same question, but it seems to me like a solution in search of a problem. First, I’m not sure it’s very important to plan out a specific strategy for how you might change your portfolio in a decade or two. An awful lot will change between now and then, and it’s not like you will be locked into any decision you make today.
Moreover, no matter what strategy you use in a taxable account, you will likely need to sell equities as you make your portfolio more conservative: this is not unique to asset allocation ETFs. And that’s fine: one should expect to realize capital gains gradually over time. So if you feel that XGRO is appropriate now, and you’re not expecting any significant changes in the foreseeable future, I would not second-guess that decision.
Hello and thank you for the clear and insightful site. I am hemming and hawing between VGRO and VBAL. Being in my mid-40s I feel like I should go VBAL but then think, wait, you have a defined pension so why not go VGRO? So again I sit on my laurels and do more research. Today I did a comparison between VBAL, VGRO and the S&P/TSX Composite Index. Both of the Vanguard ETFs don’t seem to track it very well and have underperformed in comparison. Would you still suggest either of these ETFs now that we are well into 2021? Or is there something similar that has tracked the index better? Am I even asking the right questions? Thank you! Edited to add that these monies would be in a TFSA and my RRSPs are in TD e-Series funds.
@Syerra: VBAL and VGRO are diversified portfolios of global bonds and global stocks. The S&P/TSX Composite is an index of Canadian stocks: it’s not a benchmark for either of those funds. Whether you choose one or the other, you don’t need to worry about them tracking their benchmarks closely. You can expect that to be the case every year.