Hello all,
I had a Tangerine RRSP and non-registered cash account for a while. I was disciplined and maxed out the RRSP as well as contributing monthly to the non-registered account. Both have increased nicely thanks to the current market. However, the 1.07% MER (gasp) is exorbitant considering the amount I have in these accounts (especially the RRSP).
My plan for the RRSP once it has been transferred to my brokerage account is to invest in VUS. This is currently on the TSX. I did however notice the VTI is basically the same thing, but on the AMEX. I assume it would be best to stick with VUS even though the management fee is slightly higher at 0.15%, instead of 0.05%. Am I correct in thinking it is best to go with the one on the TSX due to currency fluctuations? It is the better option in a RRSP?
For my non-registered cash account, I will be investing in the VCN. I live in BC, so it is to my understanding that it will be beneficially to invest in Canadian investments for tax benefits. This part of my portfolio will be less than 10%.
However, hypothetically, let's say I came into $200,000. Considering the Canadian market isn't as diverse as the US, I assume it would be best to not invest in just VCN for my non-registered account (even with the beneficially tax implications). In this hypothetical situation, the CAD side would now account for a big chunk of my investments. I wouldn't feel comfortable having such a large chunk of change in such a small economy. At this point, would it best to invest in something more diverse? Such as a worldwide market fund? I guess what I'm wondering is even with the tax benefits, surely having such a large part of your portfolio in Canadian (VCN) would be very risky.
Thanks for reading!