Young Canadian: Diversify with ETFs VFV, XEQT/VEQT for long-term, consider XIT/Crypto.

This Reddit post discusses a 19-year-old Canadian looking for investment advice with an initial $1000 and weekly contributions of $200. They've already started with a share in VFV.TO and are seeking further guidance, including options for higher-risk investments. This is a great opportunity to set up a long-term growth strategy, focusing on diversified Exchange Traded Funds (ETFs) and considering small allocations to higher-risk assets.

Why this is a great opportunity: The user is young and has a long investment horizon, starting at 19, and is open to taking on some risk. They even asked, "Are there any stocks you would recommend that have some risk that I could play with?" This makes growth-oriented investments a good fit. ETFs offer instant diversification and simplicity, which are perfect for new investors. The regular weekly contribution of $200 allows for dollar-cost averaging, reducing the risk of market timing.

Investment Plan:

1. Core Portfolio (Foundation for Long-Term Growth, Medium Risk):

   • VFV.TO: Continue holding and adding to VFV.TO. As mentioned in the comments ("VFV and forget about it"), this ETF tracks the S&P 500, providing exposure to large-cap U.S. equities, and is often recommended as a core holding for long-term growth.
   • XEQT.TO or VEQT.TO: For broader, all-in-one global diversification, consider consolidating into or adding XEQT.TO (iShares) or VEQT.TO (Vanguard). Commenters specifically suggested these ("For Canada that’s either veqt or xeqt," and "Vanguard has VEQT.TO"). These ETFs hold a globally diversified portfolio of stocks (Canadian, U.S., International) and are excellent 'set and forget' options for a primary holding.

2. Satellite Holdings (Higher Risk/Reward, Small Allocation):

   • XIT.TO: For exposure to the Canadian technology sector, a smaller allocation (e.g., 5-10% of the portfolio) could be made to XIT.TO. This aligns with the comment "XIT - is for tech heavy stocks. So it can dive but its potential is higher than VFV over the long term," and the user's interest in "tech heavy etfs if you want higher returns with higher [risk]."
   • Cryptocurrencies (e.g., BTC, ETH): A very small, speculative portion of the portfolio (e.g., 2.5-5%, potentially up to 8-10% as one commenter suggested if comfortable with the risk) could be allocated to established cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). This addresses the comment: "You could also invest in crypto, I personally keep a very small percentage (2.5-5%) but if you are okay with it I don’t see why going up as high as 8-10% wouldn’t hurt."
   • ZCH.TO (Optional Regional Exposure): For specific exposure to the Chinese market, ZCH.TO was mentioned ("ZCH - is for chinese exposure"). This could be considered for a very small allocation if the user is interested in this specific regional play and understands the associated geopolitical and market risks. The commenter noted, "Not sure if its worth it," indicating a more speculative or uncertain outlook.

3. Strategy & Management:

   • Dollar-Cost Averaging (DCA): Consistently invest the $200 weekly contribution into the chosen ETFs to average out purchase prices over time. This is crucial for long-term growth and managing volatility.
   • Long-Term Focus: Maintain a long-term investment horizon (10+ years), especially for the core ETF holdings. Avoid reacting to short-term market fluctuations, particularly with the higher-risk satellite holdings.
   • Risk Management for Satellite Holdings: For the "play with" portion of the portfolio (the user mentioned potentially risking up to $500 on volatile stocks), ensure this remains a small percentage of the total portfolio to avoid significant impact on overall long-term goals.
   • Review and Rebalance: Review the portfolio annually or semi-annually to ensure the asset allocation aligns with the long-term goals and risk tolerance. Rebalance if allocations drift significantly from the target percentages.