In my TFSA account I hold a few growth kickers. They are ETFs designed to deliver exceptional share appreciation. I’ve selected a few ‘undeniable trends’. The tailwinds are many and the long term prospects appear “obvious”. As expected these funds might deliver a wild ride in addition to the potential of some incredible returns. Hold on tight as we look at a few growth kickers for your portfolio.
As always, the following is not advice.
First off, please have a read of how to use your TFSA account. In that post you’ll see that we should most often fill our RRSP first, off to the TFSA and then on to the taxable account. Use one of the RRSP vs TFSA calculators to make sure you get that right. But the RRSP almost always wins. That post also suggests that you go for growth in your TFSA account. Take full advantage of that tax free growth. To date you might have $250,000 or more in your TFSA if you’ve embraced a growth strategy. If your TFSA space is used in full, use the taxable account for your emergency fund.
The hybrid TFSA
If you have not utilized all of your TFSA space you will then use your TFSA for growth AND your emergency fund. We can call that the hybrid TFSA. In our household, we are in that situation. Given that our TFSAs holds a combination of cash, a 60/40 balanced asset allocation ETF, some core Canadian holdings and the growth kickers. We have some solid energy and other inflation-friendly holdings in the mix. It’s an all-weather portfolio of sorts.
Growth kicker: CHPS-TO
First up is the the Global-X Artifical Intelligence Semi-conductor ETF, ticker CHPS-TO.
You’ve probably heard about alll of the world-changing AI stuff …
Growth Kicker: HURA-TO
Next up is the Global-X Uranium Index ETF, ticker HURA-TO.
It’s my opinion that nuclear power is one of the solutions that we will have to be embrace to meet the world’s growing energy needs. Oilprice.com reported that Global Nuclear Power Capacity set to jump by 44% by 2036.
The performance of these growth kickers
Both of these ETFs have delivered wonderful returns. I’ve used the global asset allocation ETF XEQT.TO as a growth benchmark. The hybrid TFSA approach was embraced in late 2022, I’lll show returns from January of 2023. You can research the full returns history in the above links for these ETFs.
Be sure to check out the Canadian asset alllocation ETF page.
That ETF page will be updated later this week given that we’re into July and another quarter is in the books.
As suggested, we see some wonderful returns with a couple of wild roller coaster rides.
Other growth kickers
You might consider the standard, being the Nasdaq 100 Index. You’ll find U.S. and Canadian Dollar versions available. There are many technology, robotics and AI focused ETFs available.
Check out this link on ETF database.
For Canadian Dollar ETFs we hit ETF Market where we can perform a search such as …
Harvesting those growth kicker gains
With a hybrid TFSA, there is some flexibility when emergency fund costs arise. We had so many costs arrive over the last 3 months. While our emergency fund needs are covered in cash (and partially by the HBAL.TO in the same bucket), we trimmed some of the gains in our growth kickers to meet the spending needs. We were able to leave the cash alone. That is a bonus that can be tapped while the markets and those growth kickers are offering a gift. Why not? Some of those gains could disappear in a heartbeat.
The TFSA accounts are still offer a nice mix of safety and growth. The key is to know your optimal or comfortable asset mix. Moving forward we’ll replenish those growth kickers.
Thanks for reading. We’ll see you in the comment section. Are you using any growth kickers? Or are you keeping your growth more traditional?
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Thanks for reading and watching. Have a great Sunday and week.
Dale
Dunno but wife’s TFSA is up 358% and mine 240% since 2019 including new contributions and reinvestment of dividends, and we own just two stocks – ENB and BNS. Combined $850,000 total. Great tax free income of $38,000 if so desired but we just reinvest it. Don’t need the income flow yet. No RRSP. No bonds, No Gold, No Bitcoin. I’m 73 and wife is 67. I deferred OAS until 70 and wife is doing the same. In the non registered portfolio taxes are ridiculously low here in BC with the combined federal/provincial dividend income tax credits … the best in the country. Surprising given we’ve had an NDP government since 2017 whereas in other provinces east of Saskatchewan and ruled by Conservatives or Liberals they tax dividends more than here.
Hi Barry, you missed a big opportunity with the RRSP accounts, you could have used a Spousal RRSP as well if needed. Re the TFSA, congrats on the returns. But remember you can sell shares to create income, tax free in the TFSA. There’s no difference between a share sale and a dividend with respect to risk. They both remove wealth in equal fashion.
And remember the dividends do not contribute to wealth creation, see ex dividend day. They are simply a removal of wealth.
Thanks, as always I appreciate you stopping by.
Dale
My TFSA growth kicker right now is Aecon (ARE). They are going to more and more direct nuclear work as well as more energy infrastructure work like the deal announced this past week.
Thanks James, I’ll take a look. Likely best to have several if we’re using individual stocks? There’s that concentration risk ‘thing’.
Dale
No argument from me about the concentration risk. I’m okay with it. I’ve had both good and bad outcomes, but my risk Venture plays are well behind me.
My biggest regret is selling CSU well before I should have. ARE is not the same thing of course, but I think it’s on solid ground for a significant rise from this point in time.
You’ll be happy to learn my plan is to start selling it within my non-registered accounts once it hits my target and likely replace it with VEQT or perhaps XAW to better balance the rest of my holdings 🙂