# Where to invest 25K for a long stretch?



## MrsPartridge (May 15, 2016)

Someone wants me to direct her to an investment for 25K CAD for a term of over 5 years. 
I'd like to suggest an ETF that reinvests dividends. Since I only invest in individual stocks, can anyone suggest some ETFs that might work?


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## AltaRed (Jun 8, 2009)

Unless you know what the objective/goal of that investment is for, how can you suggest a dividend ETF? And if so, Cdn equity? US equity? There are many Google links to 'best dividend ETFs' as in 10 Best Dividend ETFs in Canada for 2021 as one example. They all have slightly different opinions.

P.S. Five years is short term for equities. Long term would be a minimum of 10 years.


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## Juggernaut92 (Aug 9, 2020)

I would recommend zag. The interest yield on it is around 3% right now and barring some sort of catastrophe I can't see it dropping more than what it currently is. The yield isn't great compared to equities but good for the time period of 5 years. Just my 2 cents.


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## james4beach (Nov 15, 2012)

MrsPartridge said:


> Someone wants me to direct her to an investment for 25K CAD for a term of over 5 years.
> I'd like to suggest an ETF that reinvests dividends. Since I only invest in individual stocks, can anyone suggest some ETFs that might work?


As @AltaRed mentioned, stocks really are not a good fit for a 5 year time horizon.

I would go with *VCNS* which is the Vanguard conservative asset allocation fund. It's 40% stocks and 60% bonds, well diversified.

The statistics are at least on your side. I looked at the historical 5 year returns of this 40/60 asset mix. _It's almost always_ above 3% annual return, and quite often over 5% annual return. In the last 33 years, the worst case 5-year return was 0.3% which still isn't a disaster.

Those past returns are not a guarantee but a view of the past. Most analysts expect lower returns going forward, so this thing might return 2% to 4% in the coming years.


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## MarcoE (May 3, 2018)

Maybe a 5 year GIC? As others have said, five years is pretty short for stocks.


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## james4beach (Nov 15, 2012)

MarcoE said:


> Maybe a 5 year GIC? As others have said, five years is pretty short for stocks.


That's a good idea too, if the person is willing to lock it in. I think there are some 2% GICs out there now.


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## OneSeat (Apr 15, 2020)

2.1% at BMOIL. 2.3% at Oaken.


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