Right now, many Canadians are asking themselves some variation of this question: “What’s the perfect RRSP investment?” The short answer is none, Gordon Pape writes. There are flaws in every security you might consider for your registered retirement savings plan, from low return to high risk. But there are many that offer a reasonable combination of risk and return, and that’s where you should focus your attention. What should you look for?Rob Carrick’s 2020 ETF Buyer’s Guide: Best U.S.
There were no bad choices for ETF investors in the U.S. equity category last year, Rob Carrick writes. Every exchange-traded fund listed in the U.S. equity instalment of themade between 20 and 30 per cent in the 12 months to Jan. 31, and the three- and five-year returns were all in double digits. Want a likely path to investing disappointment? Buy a U.S. equity ETF based on those backward-looking return numbers. Dig into the other data in the Buyer’s Guide if you want to understand how these ETFs might behave in the future. Check the weighting in tech stocks, for example. If this high-flying sector falters, a tech-heavy ETF would be vulnerable.