TFSA Investors: A Simple 3-Part Split Strategy for Max Growth
Canadian investors can make their Tax-Free Savings Account (TFSA) work hard for them by following a simple three-part split strategy, says The Motley Fool Canada.
The key is to allocate $6,000, or 60%, of the $10,000 in a low-cost all-equity exchange-traded fund (ETF), specifically iShares Core Equity ETF Portfolio (TSX:XEQT).
This ETF offers diversification by tracking thousands of stocks across Canada, the United States, and international markets.
The next $2,000 should go towards a dependable Canadian dividend grower, such as Royal Bank of Canada (TSX:RY), which has raised its dividend by 14% year over year and expanded its share buyback program.
The final $2,000 can be used to invest in a high growth compounder, like Shopify (TSX:SHOP), which is capturing more of the global ecommerce market with its AI-powered shopping platform.