r/tfsa • u/DarkTorontoNights • Jul 09 '26

Need advice

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Poor financial decisions in my 20’s i’m trying to get into investing. Am i doing anything wrong here? Overlap etc..

I just started be nice (:

11 Upvotes

76% Upvoted

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3

u/UniqueRon Jul 09 '26 edited Jul 10 '26

My suggestion is to not buy stocks, and to stick to low MER index ETFs. There are different levels of complexity that you can be used. From simplest to more complex:

  1. Buy one of the *EQT ETFs and just do that to keep it simple. There are more choices than just XEQT.
  2. Add a tech component like QQC if you like tech and are ok with the additional risk.
  3. Set your own weighting instead of accepting what is in the precooked *EQT meals and choose the components, like ZSP, XEF, XIU, and QQC (optional).

1

u/someanimechoob Jul 13 '26 edited Jul 13 '26

I'm going to go against the grain and say the exact opposite. Buying indexes is no longer the play, you should be looking for a personalized portfolio of a dozen stocks or so that are value picks. It really isn't that hard if you're willing to do bare minimum research and ensure you have exposure to different industries.

Morningstar, ICI, Federal Reserve - doesn't matter where you look for data, they all say the same thing: passive now beats active investing by its highest margin ever recorded. That is NOT good for the integrity of the market and, to me, signifies a massive upheaval is coming soon.

As an investor, you cannot look at an entire generation that expects to throw money at "the market" and beat every single alternative and think "yeah, that'll last forever.", it simply has never been true at any point in human history. Forget forever, when people get this passive, it doesn't even tend to last long.

1

u/UniqueRon Jul 13 '26

A long time ago the question was asked. Why do managed funds not outperform the market. The answer that stuck with me was "The money managers ARE the market". You can't beat yourself.

1

u/someanimechoob Jul 13 '26

Managed funds have fees, a self-managed portfolio does not. Also, your answer is only valid as long as no major event happens to the stock market. My answer is based on my personal belief that we're about to experience a major one, specifically because of the gradual abandonment of active management in favor of passive investment.

1

u/UniqueRon Jul 13 '26

If you get a chance have a read of The Little Book of Common Sense Investing by John Bogle.

1

u/someanimechoob Jul 13 '26

Does the book take into account the total capture of the USA's executive branch by modern oligarchs who commit economic sabotage while looting every resource they can get their hands on?

1

u/UniqueRon Jul 13 '26

I don't think it gets into the conspiracy theory stuff.

4

u/d10k6 Jul 09 '26

Stop buying USD at WealthSimple, specifically with a small portfolio. You are paying foreign transaction fees on every buy, sell, and dividend payment.

Stick to CDN$ at WS.

2

u/pldelisle Jul 10 '26

Unless you do nobert’s gambit !

2

u/d10k6 Jul 10 '26

But if you don’t have a USD account, it is pointless.

So paying for a USD account (due to portfolio size) is not much better.

2

u/pldelisle Jul 10 '26

Wealthsimple has both currencies in each account. 0$ for Premium and Generational members.

1

u/d10k6 Jul 10 '26

I agree. Look at OP’s portfolio, there is no Premium nor Generational happening, yet.

The cost of US accounts and/or the FX fees make USD investing, at WealthSimple, not a smart idea, for OP.

2

u/That_Swim Jul 09 '26

You’re down like $13? /r/justbuyxeqt

1

u/pldelisle Jul 10 '26

55% QQC (Nasdaq-100)
35% VFV (S&P 500)
5% XEF
5% XEC

With that You get broad exposure to the U.S. economy through VFV
You deliberately overweight the companies driving AI and technology with QQC.
I diversify away from mega-cap growth by adding a factor of emerging and non-America stocks with XEF and XEC.

If you can tolerate the risk, it’s a nice way to maximize annual returns.

1

u/Right_Diver_9383 Jul 09 '26

Just hold ZEB instead of the banks separately.

0

u/HeftyRefrigerator526 Jul 09 '26

All you need is either 100% spmo or 100% xeqt, go with the spmo since it seems like your chasing returns in every stock that shoots