Disclaimer: This material is for information only and does not constitute investment advice. Consider your risk tolerance, time horizon, and the need for guaranteed income before investing.
ETF Universe
All tickers below are CAD-listed iShares ETFs available commission-free at RBC Direct Investing (unless noted).
| Symbol | Fund Name | Asset Class | Currency |
|---|---|---|---|
| XEQT | iShares Core Equity ETF Portfolio | Multi-Asset | CAD |
| XGRO | iShares Core Growth ETF Portfolio | Multi-Asset | CAD |
| XBAL | iShares Core Balanced ETF Portfolio | Multi-Asset | CAD |
| CGL | iShares Gold Bullion ETF | Commodity | CAD |
| XBB | iShares Core Canadian Universe Bond Index ETF | Fixed Income | CAD |
| CBO | iShares 1–5 Year Laddered Corporate Bond | Fixed Income | CAD |
| CLF | iShares 1–5 Year Laddered Govt Bond | Fixed Income | CAD |
| XIC | iShares Core S&P/TSX Capped Composite | Equity | CAD |
| XUS | iShares Core S&P 500 Index ETF | Equity | CAD |
| XSP | iShares Core S&P 500 (CAD-Hedged) | Equity | CAD |
| XEF | iShares Core MSCI EAFE IMI Index ETF | Equity | CAD |
| XEC | iShares Core MSCI Emerging Markets IMI | Equity | CAD |
| XQQ | iShares NASDAQ-100 Index ETF (Hedged) | Equity | CAD |
| IBIT | iShares Bitcoin Trust ETF | Digital | USD |
Design Principles for Resilience
Global Diversification
Balance Canada (XIC) with U.S. (XUS/XSP) and international (XEF/XEC) holdings to reduce home-country bias.
Currency Management
Blend unhedged U.S. exposure (XUS) with CAD-hedged (XSP) to manage currency volatility effectively.
Interest Rate Control
Pair aggregate bonds (XBB) with short-term ladders (CBO/CLF) to mitigate sensitivity to rate changes.
Real Asset Ballast
Consider a modest gold sleeve (CGL) as a diversifier against inflation and market panic.
Keep Costs Low
Prefer broad, core ETFs with low MERs. Rebalance semi-annually or when drift exceeds ±5%.
Model Portfolios by Time Horizon
20 Years to Retirement
GrowthObjective: Maximize long-term growth with broad diversification (~85% Equity).
| Ticker | Alloc. |
|---|---|
| XUS (US Core) | 35% |
| XSP (US Hedged) | 10% |
| XIC (Canada) | 15% |
| XEF (Intl Dev) | 15% |
| XEC (Emerging) | 10% |
| XBB (Bonds) | 10% |
| CGL (Gold) | 5% |
Rationale: Equity-heavy mix exploits long compounding runway. Small gold sleeve hedges tail risks.
10 Years to Retirement
BalancedObjective: Sustain growth while reducing sequence-of-returns risk (~70% Equity).
| Ticker | Alloc. |
|---|---|
| XUS (US Core) | 25% |
| XSP (US Hedged) | 10% |
| XIC (Canada) | 15% |
| XEF (Intl Dev) | 10% |
| XEC (Emerging) | 5% |
| XBB (Agg Bonds) | 15% |
| CBO/CLF (Short Bonds) | 15% |
| CGL (Gold) | 5% |
Rationale: Introduces short-duration bonds (CBO/CLF) to reduce rate sensitivity as retirement nears.
5 Years to Retirement
ResilientObjective: Protect against deep drawdowns while preserving growth (~65% Equity).
| Ticker | Alloc. |
|---|---|
| XUS (US Core) | 22% |
| XSP (US Hedged) | 18% |
| XIC (Canada) | 15% |
| XEF (Intl Dev) | 8% |
| XEC (Emerging) | 2% |
| XBB (Agg Bonds) | 12% |
| CBO/CLF (Short Bonds) | 18% |
| CGL (Gold) | 5% |
Rationale: Larger short-duration bond sleeve reduces volatility. Higher hedged US equity (XSP) mitigates currency risk.
Implementation Notes
- Rebalancing: Review semi-annually or when any sleeve drifts by ±5 percentage points.
- Glide path: From 10 years out, reduce equity by ~3–5% per year toward a 45–55% equity "retirement" mix, increasing CLF/CBO/XBB proportionally.
- RRSP context: Dividend income has no tax advantage over capital gains inside RRSP; favour total-return, broad-market exposures.
- Risk controls: Keep any single-sector tilts (e.g., technology via XQQ or Canadian tech via XIT) to ≤5–10% of equity to limit concentration risk.