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Discussion Starter · #1 ·
I don't have the time to track individual stocks/seek 'deep value'/flat-out gamble. The first person who would need the money first (in theory), would be my son in 18 years. VGRO was chosen instead of VEQT as my wife doesn't have a big a stomach as I for the swings so the 20% bonds was a compromise.

If this is a stupid strategy, please give your thoughts and we can have a discussion about it.
 

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For the RESPs, I do something similar. My kids are very young (both under 4 years old). Right now they have XEQT. As they get older we plan to reduce equity exposure in phases by holding XGRO, XBAL, XCNS and maybe GICs when nearing withdrawals. Vanguard or iShares should be similar enough.

For RRSPs, if you are both comfortable with 80/20 split then it’s fine. I was 100% equities when I started investing and learned over time I’m better suited with a more diversified portfolio. XGRO plus a GIC ladder in my RRSP helps the psychological aspect of investing.
 

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Totally fine approach. I plan on doing the same for my child's RESP. I will probably start with XEQT until they are 10 or so and then add a bond allocation.
 

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Are you just asking if the VGRO-type strategy is a good one?

or if its risky/stupid to invest all your money, all of it, in one single specific instrument called VGRO?

To the first, yes.

To the 2nd - I wouldn't worry about it a whole lot, but I might buy VGRO in one account, and XGRO in another account, if I were worried, or if my holdings were very large (several hundred K in each account). I believe there is CIPF insurance (whatever that really is) for investment accounts. I think that might be for coverage of a brokerage collapse though, not specific collapse of an index fund that is "supposed to track an index", that goes under due to whatever problems/mistakes/corruption might befall the specific fund. I'm not sure there's insurance for that scenario
 

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I agree one might want to split assets between 2 of Blackrock, Vanguard and BMO for large accounts, just for sleep-at-night factor to spread the love. There is really no risk of the collapse of any of those high AUM funds even if one of the sponsors was to pull out of Canada. They'd just sell the business to someone else, e.g. just like when Blackrock bought out Claymore.

CIPF insurance has nothing to do with insuring securities. It is 'account' insurance.
 

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Depending on your kids' ages of course, you could go XEQT or VEQT under age 8 or 10. Or, if more comfortable, go VGRO, ZGRO, XGRO.

Aligned to that, smart article on RESPs and asset allocation here:
 

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Virtually no risk of collapse or blowup at either Vanguard or Blackrock iShares.

We are quite lucky here in Canada since these ETFs are well structured. I have seen some European ETFs which are much more sketchy, for example heavily based on derivatives or exotic structures. But both VGRO and XGRO are solidly designed ETFs and I have never seen anything about these that alarmed me.
 

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I would like to do something similar.I have Maw 104 in all my accounts .The percentage ranges from 10% to 30%.My total in all accounts is 2 million and my plan is to buy more MAW 104 as cash becomes available.I look at MAW 104 as just as equal as VGRO. Your opinions please
 

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I would like to do something similar.I have Maw 104 in all my accounts .The percentage ranges from 10% to 30%.My total in all accounts is 2 million and my plan is to buy more MAW 104 as cash becomes available.I look at MAW 104 as just as equal as VGRO. Your opinions please
 

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MAW104 is technically more equivalent to VBAL at 60/40 albeit MAW104's AA has moved to 70/30 recently. I use MAW104 in an RESP for a grandchild.though I could move to the AA ETFs (e.g. VGRO) now that they are commission free at BMO IL.
 

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MAW104 is technically more equivalent to VBAL at 60/40 albeit MAW104's AA has moved to 70/30 recently. I use MAW104 in an RESP for a grandchild.though I could move to the AA ETFs (e.g. VGRO) now that they are commission free at BMO IL.
Tx Alta Red, a bit confused about the term "AA"I am missing something.
 

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Discussion Starter · #13 ·
Are you just asking if the VGRO-type strategy is a good one?

or if its risky/stupid to invest all your money, all of it, in one single specific instrument called VGRO?

To the first, yes.

To the 2nd - I wouldn't worry about it a whole lot, but I might buy VGRO in one account, and XGRO in another account, if I were worried, or if my holdings were very large (several hundred K in each account). I believe there is CIPF insurance (whatever that really is) for investment accounts. I think that might be for coverage of a brokerage collapse though, not specific collapse of an index fund that is "supposed to track an index", that goes under due to whatever problems/mistakes/corruption might befall the specific fund. I'm not sure there's insurance for that scenario
Anything is better than my father in-law's GIC's...
 
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