The loonie has been energetic, 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 modifications your Canadian-dollar return on something priced overseas. A stronger loonie can mute international positive aspects. A weaker loonie can amplify them. So, what ought to buyers do?
With that backdrop, I’d make investments $10,000 in a approach that doesn’t require a forex forecast. I’d put $7,000 into worldwide shares by iShares Core MSCI EAFE IMI Index ETF (TSX: XEF). Then I’d put $3,000 into iShares Gold Bullion ETF (TSX:CGL.C). The combination 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.
CHEF
XEF is a one-ticket strategy to personal developed markets exterior North America. It goals to trace the MSCI EAFE Investable Market Indexand it held about 2,474 shares in its newest reality sheet. That spreads danger throughout nations and hundreds of corporations, as a substitute 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 forex layer. It at the moment exhibits 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 may possibly really feel like a bonus.
Your end result with this ETF comes from dividends and earnings progress inside hundreds of companies, minus charges. On prices, XEF’s reality sheet listed a 0.20% administration price and a 0.23% MER, plus a distribution yield of two.3% on the time of writing. That mixture is the enchantment: regular publicity, low fuss, and a price that doesn’t eat the entire meal.
CGL
CGL.C does one job, and it retains it easy. It seeks to copy 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 transferring. If CAD weakens, the Canadian-dollar worth of gold can rise even when the U.S.-dollar gold worth stays flat. As of writing, its NAV was $56.91, buying and selling up 15.4% to this point 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 internet property of about $860 million, a 0.50% administration price and a 0.55% MER. Gold can cool off quick, however it may possibly 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 may possibly, however provided that the function matches. XEF works greatest for buyers who want extra world diversification than the TSX can supply, 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 earnings and may lag in calm markets.
For those who already personal world shares elsewhere, you might not want XEF. For those who hate volatility, it’s your decision a extra balanced ETF as a substitute. The secret is staying constant when the loonie tempts you to tinker.