Forex

$7,000 TFSA Investment Could Generate $35 in Tax-Free Passive Income

Guavy AI Editorial Team Published July 25, 2026

Instruments

CAD

The Bank of Canada's recent rate hikes have sparked market volatility, leading some investors to consider safer options for their Tax-Free Savings Account (TFSA) contributions. According to Joey Frenette from The Motley Fool Canada, investing in high-yield Real Estate Investment Trusts (REITs) could be a smart move.

One such REIT is SmartCentres REIT, which boasts a 6.1% distribution yield and has been relatively stable despite market fluctuations. Its diversified portfolio includes retail properties anchored by resilient tenants like Walmart, as well as residential projects under its 'SmartLiving' initiative.

Frenette notes that SmartCentres REIT's yield is one of the highest in the market, making it an attractive option for income-seeking investors. With a $7,000 investment, TFSA holders can expect around $35 per month in tax-free passive income.

$7,000 TFSA Investment Could Generate $35 in Tax-Free Passive Income

Warsh's No-Forward-Guidance Policy Tests Markets

BoE Stays Put on Interest Rate as Inflation Risks Persist

Central Banks Gear Up to Contain $100 Oil Inflation Risks