Canadian portfolio review

[Le Barbu]

Canadian investor here, want some tips to improve my ~1M$ portfolio

Overall asset allocation is 30% Canadian stocks, 37.5% US stocks, 32.5% Intl. stocks

RRSP 40% VTI, 15% VBR, 45% VXUS
RESP 100% ZCN
TFSA 75% VIU, 25% ZCN
Taxable 100% ZCN

Average fees 0.23%  (ETF MERs ~0.08% + foreign witholding taxes from VXUS and VIU)

I may increase the US % in RRSP over time via VTI to reach 40% US stocks while Intl. stocks drift to 30%

What do you think?

[daverobev]

IMHO - far too much Canadian. I don't understand how you have 37.5% US when the only US I can see is VTI?

I liked ZEA because it was not a US-wrapped ETF, not sure about VIU. So I'd have, say - VTI in the RRSP, ZEA in the TFSA, and ZCN unreg. I'm assuming the RRSP is by far the largest account, so after getting my fill of VTI then yes I would use VXUS - both are great.

[Le Barbu]

VBR is US to (US small cap value stocks)

I think VIU is +/- the same as ZEA (I dont remember what is the difference...maybe North Korea?)

What is your target % for Canadian stocks? When I simulate 25% or even 20%, my fees and taxes increase... :-(

[Le Barbu]

VXUS into RRSP have 0.52% total fees: 0.07% MER + 0.45% from FWT (3*% average dividend x 15% = 0.45%) correct?

VIU into TFSA have 0.68% total fees: 0.23% MER + 0.45% from FWT (3*% average dividend x 15% = 0.45%) correct?

*12 months average

[daverobev]

VXUS into RRSP have 0.52% total fees: 0.07% MER + 0.45% from FWT (3*% average dividend x 15% = 0.45%) correct?

VIU into TFSA have 0.68% total fees: 0.23% MER + 0.45% from FWT (3*% average dividend x 15% = 0.45%) correct?

*12 months average

VXUS doesn't have any US withholding in an RRSP. The underlying stocks depends on the country in question if they are not wrapped. If you can get something that holds stocks directly and there is a provision to not withhold in retirement accounts, you might be ok... but I don't know that many countries treat the RRSP as a tax shelter (because it isn't locked in). I don't know. I would pick VXUS, personally (and I did and do).

VIU depends. If it wraps a US listed ETF, then it will have an additional 15% drag on dividends, yes, vs something that holds stocks directly (the underlying countries will claim whatever, you can't avoid that in a TFSA).