The loonie has been vigorous, and that issues whenever you drop $10,000 into the market. The Financial institution of Canada’s every day information confirmed CAD/USD at about 0.7383 on Feb. 10, 2026, which equals roughly US$0.738 per CAD$1. The foreign money sat close to an 11-day excessive round that stage. When CAD strikes, it adjustments your Canadian-dollar return on something priced overseas. A stronger loonie can mute international positive factors. A weaker loonie can amplify them. So, what ought to buyers do?
With that backdrop, I’d make investments $10,000 in a method that doesn’t require a foreign money forecast. I’d put $7,000 into worldwide shares by way of iShares Core MSCI EAFE IMI Index ETF (TSX:XEF). Then I’d put $3,000 into iShares Gold Bullion ETF (TSX:CGL.C). The combo offers you long-term progress potential plus an “insurance coverage” sleeve that may assist when markets and currencies each get jumpy. I’d additionally decide to holding for years, not months, and including new cash on a schedule.
XEF
XEF is a one-ticket approach to personal developed markets exterior North America. It goals to trace the MSCI EAFE Investable Market Index, and it held about 2,474 shares in its newest truth sheet. That spreads danger throughout nations and hundreds of firms, as an alternative of leaning on a handful of Canadian names. The fund additionally listed internet property of about $17.9 billion, which tells you it has actual scale and tight monitoring.
The final yr for XEF has actually been about outcomes and the foreign money layer. It at the moment reveals a year-to-date return of seven.4%, with the ETF’s internet asset worth (NAV) sitting at $49.59 at writing. These are strong numbers, however the loonie nonetheless will get a vote. If CAD strengthens, your Canadian-dollar return can look smaller than the underlying market’s return. If CAD weakens, it might probably really feel like a bonus.
Your consequence with this ETF comes from dividends and earnings progress inside hundreds of corporations, minus charges. On prices, XEF’s truth sheet listed a 0.20% administration charge and a 0.23% MER, plus a distribution yield of two.3% on the time of writing. That mixture is the attraction: regular publicity, low fuss, and a charge that doesn’t eat the entire meal.
CGL
CGL.C does one job, and it retains it easy. It seeks to duplicate the value of bodily gold bullion, much less charges and bills, and it’s unhedged to the Canadian greenback. That unhedged design issues when the loonie is shifting. If CAD weakens, the Canadian-dollar value of gold can rise even when the U.S.-dollar gold value stays flat. As of writing, its NAV was $56.91, buying and selling up 15.4% up to now this yr.
The numbers additionally present why gold can earn a small seat on the desk. CGL.C additionally boasts an unbelievable 65% enhance within the final yr. It additionally listed internet property of about $860 million, a 0.50% administration charge and a 0.55% MER. Gold can cool off quick, however it might probably additionally shine when inflation fears, geopolitical stress, or fairness volatility flare.
Backside line
Might this be a purchase for others with $10,000 and the loonie in play? It might probably, however provided that the position suits. XEF works finest for buyers who want extra world diversification than the TSX can provide, and who can maintain by way of foreign money swings with out panic-selling. CGL.C fits buyers who desire a small hedge and may settle for that it produces little revenue and may lag in calm markets.
Should you already personal world shares elsewhere, it’s possible you’ll not want XEF. Should you hate volatility, you might have considered trying a extra balanced ETF as an alternative. The bottom line is staying constant when the loonie tempts you to tinker.
