When political headlines start heating up, it’s not just the diplomats who feel the pressure. Investors do too. And lately, there’s been no shortage of headlines about rising tensions between Canada and the U.S. Whether it’s about tariffs, trade disagreements, or shifting alliances, these issues can rattle markets and investors alike. But a well-structured Tax-Free Savings Account (TFSA) can act as a financial safe haven during these uncertain times. If I had $50,000 in TFSA cash to invest today, I’d look to a mix of defensive, growth-oriented, and low-volatility Canadian stocks. And three standouts for this kind of strategy are Franco-Nevada (TSX: FNV), Cameco (TSX: CCO), and the BMO Low Volatility Canadian Equity ETF (TSX: ZLB).
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FNV
Let’s start with Franco-Nevada. This isn’t your typical mining company. Instead of digging up metals itself, it funds other miners and collects royalties and streams from their production. This approach helps reduce the risks tied to things like mine shutdowns or cost overruns. That makes Franco-Nevada a resilient stock during turbulent markets. And when gold prices rise, which often happens when trade wars flare up, Franco-Nevada tends to benefit without the operational headaches.
As of its most recent earnings report, Franco-Nevada posted revenue of $321 million in the fourth quarter of 2024, a 6% increase from the year before. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) hit $277.4 million, up 9% year-over-year. Even better, the company boosted its dividend to $0.38 per share, marking 18 straight years of dividend increases. That consistency makes it especially attractive in a TFSA, where all that dividend income is tax-free. I’d feel comfortable putting $20,000 of my TFSA into Franco-Nevada and letting it quietly grow while the world works through its trade drama.
CCO
Next on the list is Cameco, one of the biggest uranium producers in the world. While uranium might not sound glamorous, it plays a vital role in powering the world’s nuclear reactors. And as more countries look to cut carbon emissions, nuclear energy is making a comeback. That means demand for uranium is poised to rise, and Cameco is well-positioned to take advantage.
Cameco’s first quarter 2025 earnings showed net earnings of $70 million and adjusted EBITDA of $353 million. While the uranium segment saw a slight dip in profits year-over-year due to the timing of sales, the average realized prices were strong, supported by a favourable U.S. dollar and higher fixed-price contracts. What this tells me is that even in a bumpy quarter, Cameco has pricing power and contracts that protect its revenue. That kind of stability matters when geopolitical risk is in the air. For my TFSA, I’d earmark $15,000 for Cameco as a long-term play on the energy transition and global energy independence.
ZLB
To round things out, I’d allocate the remaining $15,000 to something with a bit more cushion with ZLB. This exchange-traded fund (ETF) holds a basket of Canadian companies that have historically shown less price volatility. It leans heavily into sectors like utilities, consumer staples, and telecommunications, industries that people rely on no matter what’s happening in the markets or on Parliament Hill.
As of writing, ZLB was trading around $51 per share and nearing its 52-week high. That kind of steady performance is exactly what you want in the core of your TFSA when the news cycle is unpredictable. ZLB also pays a modest but reliable dividend, which gets reinvested or enjoyed tax-free inside a TFSA. It acts like the anchor in this portfolio, slowing things down when markets get too wild and offering a smoother ride through choppy waters.
Bottom line
So how does this $50,000 TFSA come together? Franco-Nevada brings income and safety through gold exposure. Cameco delivers long-term upside through uranium and the global push for cleaner energy. And ZLB keeps the portfolio grounded with a calm, consistent approach to Canadian equities. It’s a mix that balances risk and reward while keeping things simple and, most importantly, Canadian.
With trade uncertainty likely to stick around for a while, this three-part strategy gives your TFSA a strong chance to weather the storm and come out ahead. And if tensions ease down the road, you’ll still own solid companies in sectors that aren’t going out of style.
