2015-04-16

Opened a Questrade RRSP and transferred everything out of Investor's Group RRSP to Questrade. I now need to decide which ETFs to invest in. I've read Foreign Withholding Tax Explained, Justin Bender's blog post on withholding tax, and Foreign Withholding Tax: Which Fund Goes Where?. I've also reviewed the Couch Potato Vanguard ETFs Model Portfolio but I'd like to diversify my investments a bit more than that.

I already have TFSAs and RRSPs in TD E-series funds but this is my first foray into ETFs. After much research, here's what I've narrowed it down to:

Allocation

Symbol

ETF Name

MER

Category

5%

XBB

iShares Canadian Universe Bond

0.33%

Canadian Fixed Income

30%

XIC

iShares Core S&P/TSX Capped Composite

0.10%

Canadian Equity

30%

VTI

Vanguard Total Stock Market

0.05%

Large Blend (US)

5%

VBR

Vanguard Small-Cap Value

0.09%

Small Value (US)

5%

VB

Vanguard Small-Cap

0.09%

Small Blend (US)

10%

VWO

Vanguard FTSE Emerging Markets

0.15%

Diversified Emerging Markets

10%

VEA

Vanguard FTSE Developed Markets

0.09%

Foreign Large Blend

That all adds up to 95% because I'm leaving about 5% for some individual stocks. This is a long term investment (~30 years), so I want to keep the fixed income portion down to 5%. I'm also considering VAB or VSB instead of XBB for the fixed income portion as they both have lower MERs than XBB.

Thoughts?

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