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Implementing regular portfolio using CAD

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asked Jan 29, 2015 01:50 AM by
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Hi Jin,

I plan to transfer my RSP funds over to a self brokerage account in the near-term. So I was using the simulation tool to come up with a breakdown across the 4 suggested funds in the regular portfolio and notice that the CAPE and BRK-B securities are held in USD funds. Given the current exchange rate from CAD to USD, I was thinking to use something on the Canadian side instead that is similar to these funds. Can you suggest something for that? Additionally, I will be making regular contributions to my self brokerage account so what is the best way to hold or park those funds so they are available for any quick buys if the right opportunities show up?

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answered Jan 29, 2015 10:17 AM by
Jin Won Choi gravatar image Administrator

Hey Ravi, thanks for the question.

Unfortunately, using a Canadian ETF won't save you from the exchange rate. I've detailed why in this article. Basically, if you bought a Canadian ETF, the ETF would exchange the Canadian dollar to U.S. dollar inside the ETF to buy U.S. stocks.

Jin

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Thanks Jin. I checked it out. It makes sense but I need to read it over to make total sense :-) Still looking for response to my second question embedded in there. "...will be making regular contributions...." Is the answer XSB.TO? Can it be liquidated in hurry and without damages? Cheers again.

buzzbizz ( Jan 29, 2015 10:26 AM )edit

Hey Ravi, yes, XSB.TO can be liquidated in a hurry. You might not want to sell too frequently though, since it costs $10 to sell shares of XSB.TO.

Jin Choi ( Jan 29, 2015 09:29 PM )edit
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