The loonie has been full of life, and that issues whenever you drop $10,000 into the market. The Financial institution of Canada’s every day knowledge confirmed CAD/USD at about 0.7383 on Feb. 10, 2026, which equals roughly US$0.738 per CAD$1. The forex sat close to an 11-day excessive round that degree. When CAD strikes, it adjustments your Canadian-dollar return on something priced overseas. A stronger loonie can mute overseas features. A weaker loonie can amplify them. So, what ought to buyers do?
With that backdrop, I might make investments $10,000 in a manner that doesn’t require a forex forecast. I might put $7,000 into worldwide shares by iShares Core MSCI EAFE IMI Index ETF (TSX:XEF). Then I might put $3,000 into iShares Gold Bullion ETF (TSX:CGL.C). The combination provides you long-term development potential plus an “insurance coverage” sleeve that may assist when markets and currencies each get jumpy. I might additionally decide to holding for years, not months, and including new cash on a schedule.
XEF
XEF is a one-ticket option to personal developed markets outdoors North America. It goals to trace the MSCI EAFE Investable Market Index, and it held about 2,474 shares in its newest reality sheet. That spreads danger throughout international locations and 1000’s of corporations, as an alternative of leaning on a handful of Canadian names. The fund additionally listed web belongings 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 forex layer. It at present reveals a year-to-date return of seven.4%, with the ETF’s web asset worth (NAV) sitting at $49.59 at writing. These are stable 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 could actually really feel like a bonus.
Your final result with this ETF comes from dividends and earnings development inside 1000’s of companies, minus charges. On prices, XEF’s reality 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 copy the worth 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 unimaginable 65% improve within the final yr. It additionally listed web belongings of about $860 million, a 0.50% administration charge and a 0.55% MER. Gold can cool off quick, however it could actually additionally shine when inflation fears, geopolitical stress, or fairness volatility flare.
Backside line
May this be a purchase for others with $10,000 and the loonie in play? It might, however provided that the function suits. XEF works finest for buyers who want extra world diversification than the TSX can provide, and who can maintain by forex swings with out panic-selling. CGL.C fits buyers who need 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, you could not want XEF. Should you hate volatility, it’s your decision a extra balanced ETF as an alternative. The hot button is staying constant when the loonie tempts you to tinker.
