If you’re a Motley Fool investor seeking a solid long-term portfolio, then you’re going to want to invest in companies that will grow fast. However, that doesn’t mean you need to seek out risky TSX stocks today. And that can be hard. There are a lot of risky options taking up news headlines. But there is another option.
Exchange-traded funds (ETF) allow investors to take away some risk. Now of course, not every ETF is safe. But overall, these are like owning an entire portfolio dedicated to an industry, yield, growth, international exposure, and more.
Furthermore, because of the recent market drop a lot of these ETFs are cheap. This provides Motley Fool investors with a strong jumping in point to see high growth from these TSX stocks in a short period. So here are three I’d start with.
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Vanguard Growth
One of the best TSX stocks for high growth focuses on growth itself. The Vanguard Growth ETF Portfolio (TSX:VGRO) focuses on investing in equities and fixed income securities that provide investors with long-term capital growth. Yet because of the downturn, shares fell 9% in January, only now making some headway.
The massive correction led to a huge opportunity for Motley Fool investors. The company has $2.71 billion in net assets as of writing, with its net asset value (NAV) sitting at 32.36 and a yield of 1.75%. It’s one of the most popular TSX stock ETFs out there thanks to its management team, so if you’re looking for strong future growth then you definitely want to consider Vanguard as it climbs back to 52-week highs.
BMO Equal Weights Bank
Another of the TSX stock ETFs I’d consider has to be BMO Equal Weights Bank ETF (TSX:ZEB). And while Vanguard continues to climb back, BMO stock continues to climb higher and higher. Why? Because it’s invested in the Big Six Banks, aiming to replicate their performance as accurately as possible.
Right now, it seems that the banks are some of the only companies doing well among TSX stocks. Shares are up an incredible 36% year to date, and it offers $2.05 billion in net assets, with a NAV of 38.11. Shares fell 5% at the end of January, but have since been climbing back up on the back of strong job creation in both Canada and the U.S. And of course, on the news that interest rates should be increasing on both sides of the border as well.
BMO is one of the best TSX stock ETF you can get for solid growth, and doesn’t seem to react much to dips except during crashes — just like the Big Six Banks. And with a 3.33% yield, it’s a great long-term option.
iShares S&P/TSX
Now a lot of the comparisons we make to the performance of TSX stocks comes down to the TSX itself. But when it really comes down to it, all we’re looking at are the top 60 performers. That’s why many companies have created ETFs that focus on replicating the performance of those 60 companies. But one of the best has to be iShares S&P/TSX 60 Index ETF (TSX:XIU).
The company is like looking in a mirror when it comes to performance by these TSX stocks. It has climbed 25.32% year to date, coming back after falling along with the TSX by 6%. Now of course, things can go sideways for the TSX as well. But overall, it trends higher and higher. That’s what makes this a great purchase. You get the solid performance of the TSX, at a cheap share price of just $32.80 as of writing.
IShares has $10.73 billion in net assets as of writing, with a NAV of 31.68. You can also pick up a yield of 2.55% for even more solid income, making it actually better than the TSX. All of these TSX stocks are solid options for a long-term portfolio, with each now offering a great point to jump in on the cheap, and see high growth for decades.
