When I look for stocks that can build long-term wealth, I want a few simple things. I want a business or fund with a structure that can survive bad years, a strategy that does not depend on one lucky break, and numbers that show real staying power. That can mean a balanced exchange-traded fund (ETF) that quietly compounds in the background, or an insurer with a long record of growing book value. The point is not to chase the loudest name. It is to find something you can still feel good about holding years from now. So, let’s consider two on the TSX today.
Source: Getty Images
VBAL
Vanguard’s Balanced ETF Portfolio (TSX: VBAL) gives investors a one-ticket portfolio with about 61.5% in stocks and 38.4% in bonds as of February 28, 2026, with exposure across Canada, the United States, Europe, and emerging markets. That means you are not betting your future on one company, one sector, or one country. For long-term investors, that kind of built-in balance is a pretty powerful feature.
Over the last year, VBAL has kept doing what it is supposed to do: quietly give investors diversified exposure without making them work too hard. Its underlying mix includes the U.S. Total Market Index ETF at 26.35%, the Canadian Aggregate Bond Index ETF at 22.96%, and the FTSE Canada All Cap Index ETF at 19.02%. Plus smaller allocations to international equities, emerging markets, and global bonds.
The numbers look solid enough for that role. Vanguard’s data shows a portfolio price-to-earnings (P/E) ratio of 21.2 at writing, and share growth of 10% in the last year. On the bond side, the effective yield to maturity was 3.4%, with average quality at AAA. Add in a trailing yield of around 2.1%, and VBAL offers a nice mix of growth, income, and smoother-ride potential. It is not thrilling, but that is part of the charm.
FFH
Fairfax Financial (TSX: FFH) is almost the opposite kind of wealth builder. It is a complex insurance and investment holding company, not a balanced fund, and it has a much more active and opinionated style. But for long-term investors, that can still be a very attractive setup. Fairfax stock owns property and casualty insurance and reinsurance businesses around the world, and it uses the insurance float to invest across bonds, equities, and private holdings.
Over the last year, Fairfax has looked extremely strong. In 2025, it reported what management called the best year in its history, helped by record underwriting profit, record interest and dividend income, strong contributions from associates, and large investment gains. It also bought back just over one million shares for about US$1.6 billion, which tells you management still saw value even after a big run in the stock.
The earnings were huge. Fairfax stock reported 2025 net earnings of US$4.77 billion, or US$213.78 per diluted share, up from US$3.87 billion in 2024. Book value per basic share rose to US$1,260.19 from US$1,059.60, an increase of 20.5% adjusted for the dividend. Gross premiums written climbed to US$33.3 billion, and record interest and dividend income reached US$2.6 billion.
Valuation still looks surprisingly reasonable. Fairfax stock held a market cap of around $51 billion, and the trailing P/E was around eight. So, no, this is not a bargain-bin stock in absolute dollars. But relative to the earnings power and book-value growth, it still looks quite compelling.
Bottom line
If I were building long-term wealth with just two names, these make a pretty interesting pair. VBAL offers broad diversification and a smoother compounding path. Fairfax stock offers sharper upside through insurance, investing skill, and disciplined capital allocation. One is simple and steady. The other is a little more adventurous. Together, they show that long-term wealth does not come from one magic formula. It comes from owning strong things and giving them time.
