Is real estate the best investment for a Canadian retiree? + MORE May 12th

Another year, another series of milestones for the ETF industry. When we started surveying the best exchange-traded funds available to Canadian investors in 2012, they were just a new niche in Canada’s investment industry for DIY and couch potato investors. Today, by contrast, they’ve surpassed mutual funds in sales for three straight years and many investment advisors and financial planners use these assets for clients now, too.

Canadians use ETFs to populate not just their retirement accounts but tax-free savings accounts (TFSAs), registered education funds (RESPs), first-home savings accounts (FHSAs) and taxable accounts—wherever they might benefit from the wide diversification, liquidity and low fees that ETFs provide.

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Real estate investing has its merits. And certain markets have performed exceptionally well in Canada over the past generation. But sometimes, especially as you approach retirement, you should reconsider your real estate strategy.

Which has better returns? Real estate versus stocks

Some Canadian investors look to real estate over stocks because they perceive real estate to be a better investment. I do not think it is better or worse—simply different.

Stock performance

This year has been a volatile one for stocks, and many think it’s been a bad time to invest in the markets. The S&P/TSX Composite Index has returned 3.53% including dividends year-to-date through May 9, and 16.75% over the past year. The S&P 500 in the U.S. has not fared as well, losing 6.40% year-to-date in Canadian dollar terms (in part due to the U.S. dollar falling) and returning 11.91% over the past year. 

So, a North American–focused stock investor may be down slightly in 2025 but would have a double-digit return over the previous year…

Investors have seen a decade-plus of U.S. exceptionalism with substantially higher earnings multiples for American stocks compared to their global counterparts.,However, U.S. markets are showing signs of finding a new equilibrium. So far this year, the S&P 500 has been underperforming both Canadian and European markets.

There are even indications Canadian investors are rejecting U.S. equity exchange-traded funds (ETFs) in response to U.S. President Donald Trump’s trade war and threats of annexation. 

Nonetheless, U.S. equities are impossible to ignore—they represent 60% of global stock market capitalization. So, if you mean to have a globally diversified ETF portfolio, you should have an allocation to U.S. equity funds.

Best U.S. Equity ETFs 2025

ETFTickerManagement feeMERHoldingsDescriptionVanguard Total Stock Market ETFVTIn/a0.03%3562U.S.-listed version of VUN with miniscule MERVanguard US Total Market Index ETFVUN0.15%0.17%3,608 u/lMost diversified of the total market funds, Canadian-dollar version of VTIiShares Core S&P U…

Whether you’re a graduating student or are just starting your career, moving out of your parents’ house is a significant milestone. But with rising rents and increased costs of living, there are various financial aspects to consider before you make this big decision. Here’s a 10-step plan to help you assess if the time is right for you to break out on your own—without breaking the bank.

Ask yourself: Why move out now?

Before you start packing boxes, ask yourself why you want to move out. Perhaps you have an appetite to become more self-sufficient and learn to cook your own meals. Or maybe you’re tired of being interrupted by your parents when you have friends over and would prefer more privacy. If you’re from a small town, you might want to experience life in a big city. 

Depending on your reasons for moving out, you may have to build extra money into your post-move budget. After all, if you’re hoping to go out more and enjoy the nightlife, that won’t be possible if you’re spending all your disposable income on rent…

When we started rating Canada’s best exchange-traded funds (ETFs) more than a decade ago, the idea was to identify core building blocks of a self-directed portfolio amongst the various asset classes and investable regions. But since 2019, there’s been a still easier option for Canadian investors: one-decision, asset allocation or all-in-one ETFs that hold multiple asset classes, globally diversified, in a single product.

If you lack the investment knowledge, time or inclination to manage a handful of ETFs, this is a great option. For fees as low as 0.2% of funds invested per year, you get access to the whole world of stocks, bonds and sometimes other asset classes. You wouldn’t have to weary yourself following the market gyrations we’ve seen so far in 2025—just set it and forget it. By automatically rebalancing allocations to domestic and foreign stocks and bonds, these one-decision ETFs reduce the work required by a DIY investor to stay on top of the ebbs and flows of the underlying holdings…