Review and update: Pape’s RRSP portfolio

How often should you review your portfolio?

When was the last time you reviewed your RRSP portfolio? If you’re like most people, it was probably in February, when you were deciding how much to contribute.

If that’s the case, it’s not enough. Your RRSP account should be given a thorough review at least twice a year. If it’s heavily invested in the stock market, a more frequent check is in order. The stock market is expensive right now, and a correction is possible. Don’t be caught off guard.

When you review your plan, give special attention to asset allocation and how it compares to your original goals. If it’s more than five percentage points out of line in any category, consider doing some rebalancing.

RRSPs offer two tax advantages. All the money you contribute is tax-deductible up to the legal limit. For 2026, you can contribute up to 18% of your earned income from the previous year (2025), or the maximum dollar cap of $33,810, whichever is less.

The second benefit is that all the income you earn within the plan is tax-free until you make a withdrawal. Any withdrawal is taxable at your marginal rate.

To help readers construct and maintain a balanced RRSP, I launched an RRSP model portfolio in February 2012 in my Internet Wealth Builder newsletter and have reviewed it twice a year since.

The portfolio has two main objectives: to preserve capital and to earn a higher rate of return than is available from a GIC. The original value was $25,031.92.

The portfolio contains a mix of ETFs and stocks, so readers who wish to replicate it must have a self-directed RRSP with a brokerage firm.

These are the securities we currently hold, with comments on how they have performed since the last review in February. Results are as of the close on Aug. 26.

iShares Core Canadian Corporate Bond Index ETF (TSX: XCB). We added this ETF at the time of our last review in February. The units are down $0.33 since, but that was offset by seven distributions of $0.07 monthly, for a total of $0.49 per unit.

CI High Interest Savings ETF (TSX: CSAV). This fund invests in high-interest deposit accounts at Canada’s major banks. It earns a better rate of return than a retail customer can obtain because of its hefty purchasing power. The units are down $0.04 since the last review, but we received monthly distributions totaling $0.593 per unit.

BMO S&P/TSX Banks Equal Weight Index ETF (TSX: ZEB). This ETF invests in shares of the Big Six Canadian banks. Banking stocks continue to do well, and this ETF posted a big gain of $14.49 per unit. Monthly distributions totaled $0.877.

iShares MSCI Minimum Volatility USA Index ETF (CAD-Hedged) (TSX: XMS). XMS invests in low-beta U.S. stocks. Low beta means they are less sensitive to broad market movements and, in theory, less risky. The fund posted a gain of $1.76 in the latest period. Quarterly distributions totaled $0.257 per unit.

BMO Low Volatility Canadian Equity ETF (TSX: ZLB). This ETF invests in a portfolio of large-cap Canadian stocks that have a low-beta history. It’s up $2.12 since the last review. We received two quarterly distributions for a total of $0.56 per unit.

BMO Low Volatility International Equity Hedged to Canadian Dollar ETF (TSX: ZLD). This ETF focuses on international stocks and is hedged to Canadian dollars, so the currency risk is removed. It gained $0.72 in the latest period. Distributions totaled $0.37 per unit.

Brookfield Corporation (TSX: BN). Brookfield operates in a range of business areas including real estate, asset management, renewable resources, infrastructure, and insurance. The stock is down $5.45 since the last review. We received two quarterly dividends for a total of $0.192.

Enbridge Inc. (TSX: ENB). Enbridge offers an attractive yield (currently 5.4%) and modest capital gains potential. The stock is down $0.15 since the last review but due to timing we received three quarterly dividends of $0.97 a share for a total of $2.91.

Fortis Inc. (TSX: FTS). Interest-sensitive stocks continued to show modest gains in the latest period, with Fortis up $2.80. Due to timing, we received three quarterly dividends of $0.64 per share. 

Manulife Financial Corp. (TSX: MFC). Manulife continues to do well. The stock is up $8.57 in the latest period. We received three dividends for a total of $1.455 per share.

Interest. We had a cash balance (including retained income) of $2,852.74. We moved it to the Kawartha Credit Union High Interest eSavings Account which was paying 2.25% on RRSP accounts. We earned $32.09 in interest.

Here is how the RRSP Portfolio stood as of Aug. 26. Commissions have not been factored in. All amounts are in Canadian dollars.

Comments

The portfolio was up 4.25% in the latest period. The biggest gains were posted by the BMO S&P/TSX Banks Equal Weight Index ETF (ZEB) and Manulife (MFC). Brookfield (BN) was the weakest component.

Over the 14 1/2 years since the portfolio was launched, we have a total return of 265.5%. That’s an average annual growth rate of 9.35%, well ahead of our target.

Changes

The portfolio is performing well and has significant downside protection through its holdings in XCB and CSAV. Brookfield hit a rough patch, but I expect it will recover. The result is that we won’t make any changes to the portfolio composition, but we will reinvest some of our retained earnings as follows.

CSAV – We’ll buy another 10 units at $50.01 for a cost of $500.10. That gives us 240 units and reduces retained earnings to $96.69.

ENB – We’ll spend $698 to buy 10 more shares. That increases our holding to 120 shares while lowering retained earnings to $33.83.

The new cash balance (including retained income) is $2,911.12. We will keep it in the Kawartha Credit Union High Interest eSavings Account which is paying 2.25% on RRSP accounts.

Here is the revised portfolio. I’ll review it again in my Internet Wealth Builder newsletter in February.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.

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Notes and Disclaimer

Content © 2026 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

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