The best investment strategy for a 35-year-old?
Asked 4 years ago
I am very new to investing and opened up a TFSA with WealthSimple. I do not have a ton of money (I just bought my first home). But, I figured I would start with $200.00 and add to it weekly with what I could afford from each week's pay, which is about $50 - $100. I am 35 years old. What is the best strategy for me?
Andrew Moran
Thursday, June 03, 2021
While you are unlikely to get in on the ground floor of any major investment, you can still find value in a broad array of stocks and exchange-traded funds (ETFs).
Your first strategy of starting small is the smart move when you first become active in trading.
The best investment play right now is either buying stock in a company you know about, such as Starbucks or Loblaw, or purchasing an index fund through an ETF.
Right now, you could purchase one of three ETFs that possess a diverse array of stocks:
iShares S&P/TSX 60 Index ETF (XIU)
- 06/03: $30.12
- Yield: 2.74%
- Top Holdings: Royal Bank of Canada, Shopify, TD, Enbridge, and Bank of Nova Scotia
iShares S&P TSX Composite High Dividend Index ETF Units (XEI)
- 06/03: $23.94
- Yield: 4.25% (monthly dividend)
- Top Holdings: Enbridge, TC Energy Corp, TD, BCE, and Royal Bank of Canada
BMO Canadian Dividend ETF (ZDV)
- 06/03: $18.90
- Yield: 4.33% (monthly dividend)
- Top Holdings: Bank of Nova Scotia, Royal Bank of Canada, TD, Enbridge, and CIBC
Plus, always remember to dollar-cost average (DCA) down. Since you are likely buying near the top right now, try to take advantage of red days.
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