How I’d Deploy $10,000 When the Loonie Is Playing a Big Role

When investing $10,000 while the Canadian dollar (loonie) is fluctuating, the goal isn’t to predict where the currency will go — that’s near-impossible — it’s to build a diversified plan that doesn’t hinge on exchange-rate bets. A currency swing can quietly reshape your returns on foreign assets, so structuring your portfolio to balance growth and risk makes sense in uncertain FX conditions.

First, I’d put about $7,000 into a broad international stocks ETF like the iShares Core MSCI EAFE Index ETF (TSX: XEF). This gives you instant exposure to thousands of developed-market companies outside North America at a relatively low cost. Because it holds stocks across Europe, Asia and other developed regions, it spreads risk and doesn’t rely solely on Canadian or U.S. market performance. The ETF’s diversification helps smooth out country-specific risks and allows you to benefit from global earnings growth.

Next, I’d allocate roughly $3,000 to a gold ETF such as the iShares Gold Bullion ETF (TSX: CGL.C). Gold doesn’t produce income, but it can act as a hedge when markets and currencies get jumpy. When the loonie strengthens or weakens abruptly, gold often moves in a way that diversifies portfolio risk. Holding a small gold position can help protect your capital if equity markets slip or if currency swings amplify volatility.

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The key here is long-term planning: this isn’t about making quick gains in a week or a month. You’d want to hold for years and consider adding new money regularly — dollar-cost averaging — to reduce timing risk. Both international equities and gold can be choppy in the short run, but time tends to smooth out those swings for investors who remain patient.

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Ultimately, this blend — mostly global stocks for growth with a smaller hedge position in gold — helps you participate in international growth while mitigating currency risk rather than attempting to forecast the loonie itself.