To buy in TFSA Energy ETF that focus on traditional utilities
- proven solid
- frequent distribution [XUT - iShares S&P/TSX Capped Utilities Index ETF](iShares S&P/TSX Capped Utilities Index ETF | XUT) more utility-focused [XEG - iShares S&P/TSX Capped Energy Index ETF](iShares S&P/TSX Capped Energy Index ETF | XEG)
To buy in RRSP Clean energy ETF
- bet on future
- harvest by cycle
Utility ETFs are great for income-focused investors who want stability and dividends.
Energy ETFs are better for growth-oriented investors who can handle volatility and want exposure to commodity cycles.
See the chart of XUT and XEG, the energy ETF is so much more cyclical and volatile.
Strategy
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TFSA = Canadian equity (XEI, VCN, XIC, etc.)
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RRSP = Foreign equity (U.S. + international) for maximum tax efficiency (avoid 15% U.S. dividend withholding tax)