Long-term investing is about letting time and compounding do most of the work. Your job is to pick a simple, sensible strategy, automate it as much as you can, and avoid blowing it up with emotional decisions.

8.1 Why “Time in the Market” Wins

Over years and decades, markets go through corrections and bear markets, but historically broad stock markets have grown as economies and company profits grow. Trying to jump in and out perfectly is extremely hard; missing just a handful of the best days can cut your long-term returns dramatically.

For a Canadian with a multi-decade horizon:

• Staying invested in a diversified portfolio usually beats trying to time every wiggle.
• The combination of growth plus reinvested dividends can be powerful inside TFSA and RRSP.

Your goal: build a long-term engine you can mostly leave alone and let your short- and mid-term buckets handle your “itch to trade.”

8.2 Simple Long-Term Approach #1: All-in-One Equity ETFs

All-equity ETFs like XEQT (iShares) and VEQT (Vanguard) give you global stock diversification in a single fund:

• They hold Canadian, US, international developed, and emerging market stocks under the hood.
• They automatically rebalance for you, so you don’t have to juggle multiple ETFs.
• They are designed for long-term capital growth.

Benefits for beginners:

• One ticker to buy in your TFSA or RRSP.
• Globally diversified right away (no stock picking required).
• Low ongoing fees compared to most mutual funds.

XEQT vs VEQT (at a high level):

• XEQT: slightly more international/US exposure.
• VEQT: slightly more Canadian exposure.

Either one can be “enough” as a one-fund long-term portfolio if you stick with it and keep adding regularly.