If you’re planning to contribute $7,000 to your Tax-Free Savings Account (TFSA) this year, you might be wondering how to put that money to work. Naturally, you want to maximize growth. But let’s be real: there’s a difference between smart growth and reckless speculation.
Maximizing growth doesn’t mean chasing meme stocks, leveraged ETFs, or crypto hoping to triple your money overnight. That’s more likely to end with an 80% loss than financial freedom. A more reliable approach is sustainable growth: a globally diversified portfolio of equities that balances upside with long-term stability.
And for that role, I like the TD Growth ETF Portfolio (TSX:TGRO). It’s simple, efficient, and built to deliver steady equity growth with minimal fuss. Here’s why it stands out.
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It is constructed sensibly
TGRO isn’t trying to reinvent the wheel. It follows a traditional 90/10 growth portfolio model, meaning it invests 90% in stocks and 10% in bonds. The equity exposure is spread across Canadian, U.S., and international markets. The bond portion is focused on high-quality Canadian fixed income.
What you’re getting is a sensible mix of domestic stability and global opportunity. It doesn’t dabble in niche plays like emerging markets, small caps, or factor strategies, just broad exposure to the world’s largest and most established economies.
TGRO also rebalances periodically, meaning the portfolio auto-corrects to maintain the target allocation over time. No need to micromanage on your end.
It is low-cost
The management expense ratio (MER) on TGRO is 0.17%. That includes all management fees and operational costs. For a $7,000 investment, that’s about $11.90 per year, which is pennies for the peace of mind and diversification you get.
Over time, keeping fees low can significantly improve your total returns, especially in a tax-sheltered account like the TFSA. Comparable mutual funds with a similar strategy as TGRO can charge MERs of almost 10 times more, usually around 1.5%.
It is accessible
At the time of writing, TGRO trades for $23.55 a share. So your $7,000 contribution easily covers a diversified global portfolio that also pays you a small monthly dividend. No need for fractional shares, simply set aside some money every paycheque and buy TGRO!
And if you use TD EasyTrade to make your purchase, you pay no commission. That means you can set up a recurring investment with no added trading costs. If your goal is to grow your TFSA consistently over time with minimal effort, TGRO checks all the right boxes.
