How I’d Invest $10,000 With the Loonie in Play

The loonie has been lively, and that matters when you drop $10,000 into the market. The Bank of Canada’s daily data showed CAD/USD at about 0.7383 on Feb. 10, 2026, which equals roughly US$0.738 per CAD$1. The currency sat near an 11-day high around that level. When CAD moves, it changes your Canadian-dollar return on anything priced abroad. A stronger loonie can mute foreign gains. A weaker loonie can amplify them. So, what should investors do?

With that backdrop, I would invest $10,000 in a way that does not require a currency forecast. I would put $7,000 into international stocks through iShares Core MSCI EAFE IMI Index ETF (TSX:XEF). Then I would put $3,000 into iShares Gold Bullion ETF (TSX:CGL.C). The mix gives you long-term growth potential plus an “insurance” sleeve that can help when markets and currencies both get jumpy. I would also commit to holding for years, not months, and adding new money on a schedule.

XEF

XEF is a one-ticket way to own developed markets outside North America. It aims to track the MSCI EAFE Investable Market Index, and it held about 2,474 stocks in its latest fact sheet. That spreads risk across countries and thousands of companies, instead of leaning on a handful of Canadian names. The fund also listed net assets of about $17.9 billion, which tells you it has real scale and tight tracking.

The last year for XEF has really been about results and the currency layer. It currently shows a year-to-date return of 7.4%, with the ETF’s net asset value (NAV) sitting at $49.59 at writing. Those are solid numbers, but the loonie still gets a vote. If CAD strengthens, your Canadian-dollar return can look smaller than the underlying market’s return. If CAD weakens, it can feel like a bonus.

Your outcome with this ETF comes from dividends and earnings growth inside thousands of firms, minus fees. On costs, XEF’s fact sheet listed a 0.20% management fee and a 0.23% MER, plus a distribution yield of 2.3% at the time of writing. That combination is the appeal: steady exposure, low fuss, and a fee that does not eat the whole meal.

CGL

CGL.C does one job, and it keeps it simple. It seeks to replicate the price of physical gold bullion, less fees and expenses, and it is unhedged to the Canadian dollar. That unhedged design matters when the loonie is moving. If CAD weakens, the Canadian-dollar price of gold can rise even if the U.S.-dollar gold price stays flat. As of writing, its NAV was $56.91, trading up 15.4% so far this year.

The numbers also show why gold can earn a small seat at the table. CGL.C also boasts an incredible 65% increase in the last year. It also listed net assets of about $860 million, a 0.50% management fee and a 0.55% MER. Gold can cool off fast, but it can also shine when inflation fears, geopolitical stress, or equity volatility flare.

Bottom line

Could this be a buy for others with $10,000 and the loonie in play? It can, but only if the role fits. XEF works best for investors who need more global diversification than the TSX can offer, and who can hold through currency swings without panic-selling. CGL.C suits investors who want a small hedge and can accept that it produces little income and can lag in calm markets.

If you already own global stocks elsewhere, you may not need XEF. If you hate volatility, you may want a more balanced ETF instead. The key is staying consistent when the loonie tempts you to tinker.

The post How I’d Invest $10,000 With the Loonie in Play appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.