Registered Retirement Savings Plan (RRSP) season shows up like a pop quiz. One day you feel fine, and the next you realize the deadline is right there. For the 2025 tax year, the contribution deadline lands on Mar. 2, 2026, so this is the week when “I’ll do it later” starts to look expensive.
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What to do, right now
RRSP season can cut your tax bill and build your retirement base at the same time. The catch is that the calendar can trick you. A last-minute contribution can still help your taxes, but it often sits in cash while you decide what to buy. That delay can steal momentum. The win is pairing the deduction with an investment you can live with for years.
The one move I would make this week is simple: contribute and invest immediately, in the same sitting. No “parking it for now.” Put the money into your RRSP, then deploy it into a broad, low-cost core holding that matches your long-term plan. That single step protects you from the most common RRSP-season mistake, which is turning a tax strategy into a market-timing decision.This move narrows your choices when your brain wants to spin. RRSP season creates decision pressure.
Everyone starts comparing funds, reading hot takes, and second-guessing everything. A core holding gives you a default. You can still add other ideas later, but your contribution starts compounding right away. It also protects you emotionally. If markets wobble next week, you’ll feel less regret because you followed a process, not a prediction. If markets rally, you won’t sit on the sidelines. Repeatable behaviour usually beats clever timing, especially inside an RRSP where the real edge comes from staying invested.
Consider ZCN
If you want a clean core for Canadian equities, the BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN) fits the job. It aims to track the S&P/TSX Capped Composite Index, which gives you broad exposure to the Canadian stock market in one trade. You get the banks, the energy giants, the rails, and the industrial names that drive the index, with a cap on individual weights to soften single-stock concentration.
ZCN also stays cheap with a management fee at 0.05% and management expense ratio (MER) around 0.06%. That sounds tiny, but fees compound in reverse every year. Recent numbers show why it works for RRSP season. It grew into a large fund, with assets around $13.5 billion on Fund Library. At writing, it offers a yield around 2.2%, which adds a small stream of cash along the way. It also delivered a strong one-year return of 27%, which reflects a good stretch for Canadian financials and a steadier tone in energy. Those are backward-looking, but they underline that “boring Canada” can still work.
The outlook for ZCN will hinge on two Canadian realities. Banks still steer a big slice of the index, so credit quality and loan growth will matter. Energy still swings the tape, so commodity prices can lift or drag results in a hurry. That is the trade-off with Canada: concentration comes with the territory. Even still, here’s what just $7,000 could bring in from passive income alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| ZCN | $43.18 | 162 | $0.96 | $155.29 | Quarterly | $6,995.16 |
Bottom line
So, is ZCN a buy for others during RRSP season? It can be, if you want straightforward Canadian equity exposure, low fees, and a portfolio you can ignore most days. It may not be, if you want heavy U.S. tech exposure or you cannot handle Canada lagging for stretches. Still, if your goal this week is one smart move you can execute, contribute to, and invest in right away, let a broad ETF like ZCN do the heavy lifting. Pair it with a U.S. or international equity ETF later if you want more growth, but start here today.
