Ultimately, being a good long-term investor means being able to ride the ups and downs of the market. When markets head south, it’s important to have a plan while focusing on the long-term trajectory, rather than getting caught up in the fear that leads some to sell stocks at a loss.
In this piece, we’ll look at two interesting Canadian ETFs that I think could make sense to buy, regardless of whether fear or greed is at the helm. Right now I would say there is quite a bit of fear among investors. The TSX index is on edge, and extended valuations could limit the potential upside in the coming years.
Even a small amount makes sense to put to work if you’re not paying a commission to your brokerage
Regardless, I think staying invested is the message for new investors who want to participate in the growth of the economy without having to pick their place. Timing the market is rarely a good idea, especially if you’re new and more likely to follow the herd. So with the headlines becoming increasingly scary, it may be time to put the fear behind us and focus on some high-quality weakness ETFs. Sometimes when the markets get choppier, you need to buy something.
And if you have a small amount of money (let’s say $100), I’d say choosing an ETF makes the most sense, especially considering that many Canadian investors can buy select ETFs without having to pay a commission. Without commissions, it makes sense to invest even small amounts (or reinvest if we are talking about the dividends that have piled up) so that you can get the most out of compounding. However, if you have to pay $5-10 per transaction, I think it would be wise to wait until you have at least a four-figure sum.
These Canadian ETFs are great for new investors who aim to keep things simple
Of course, you can wait until you have $500, $1,000 or even $5,000 to invest before going for an ETF. But if you can buy an ETF without commission, I don’t think there would be any point in trying to time the markets. Either way, consider simple options like the Vanguard FTSE Canada Index ETF (TSX:VCE), a great collection of Canadian stocks with an average yield of 2.4% at the time of writing.
With minimal fees and a strong 50% gain over the past two years, I’d say this stunning Canadian ETF is a good bet, especially if you can pick it up during a dip. Either way, Vanguard is a standout for investors who want to keep expense ratios (fees) low.
The I invest Nasdaq 100 Index ETF (TSX:QQC) is also an attractive higher growth ETF for investors who want more exposure to the Magnificent Seven US tech enthusiasts, who have a lot of AI tailwinds at their backs. Undoubtedly the Nasdaq100which follows the QQC has been a choppier ride, but for younger investors looking to boost their growth, I’d say the QQC is a great way to bet on growth without having to trade crazies for dollars, especially as the Canadian dollar fades.
Of course, the QQC will likely be choppier than the VCE, especially if AI corrects violently in 2026. So be prepared for a wilder ride with such a tech-heavy index, given its higher beta and potential for amplified downside.
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