ETFs for children—and for all ages

Article Excerpt

For parents or grandparents who wish to save for their children’s future, there are few better ways than to invest in a diversified portfolio of high-quality, growing companies. Here are two ETFs that can help investors achieve that goal. And even better, these same ETFs are great portfolio additions at any age! Meanwhile, please also see the Supplement on page 49 for more information. BMO S&P/TSX CAPPED COMPOSITE ETF $25.79 (Toronto symbol ZCN; TSINetwork ETF Rating: Aggressive; Market cap: $5.4 billion) invests in publicly listed Canadian companies. The ETF tracks the S&P/TSX Capped Composite Index. Stock weights are based on their market value adjusted for liquidity, but individual holdings are capped at 10%. The index is rebalanced every quarter. Industrials make up 22% of the portfolio, followed by Technology (19%), Energy (17%), Communication Services (11%), Basic Materials (10%), and Consumer Defensive (7%). The ETF holds 222 stocks with the top 10 making up 38% of the portfolio. Top holdings include Shopify (6.4%), Royal Bank of Canada…