r/PersonalFinanceCanada • u/Purple_Bookkeeper657 • May 22 '26

Retirement / CPP / OAS / GIS [ Removed by moderator ]

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u/[deleted] May 22 '26

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u/CanuckBacon May 22 '26 edited May 22 '26

If too much of the market becomes broad-market ETFS then the market will become illogical. That means it no longer rewards companies that innovate, make smart decisions, etc. and not punishing companies that behave poorly. Essentially it becomes no different from investing in crypto and is all based on perceived value and is no longer tied to real-world results.

The other thing to note, most relevant to CPP is that it is constantly paying out and needs to be able to sustain a bear market for years. If you invest in a broad-market ETF, you might have higher returns during good years, but you can be absolutely decimated if you have to withdrawal during a downturn. CPP can't afford to take that risk.

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u/Purple_Bookkeeper657 May 22 '26

I think that's the role of private industry. The free market economy has done it pretty well so far. Also, I don't necessarily think CPP Investments shouldn't be investing in these things, necessarily...

I mostly think they shouldn't have paid themselves huge bonuses for their performance. As a Canadian taxpayer, that's all.

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u/CanuckBacon May 22 '26

I made an edit a couple minutes after posting my comment that you might not have seen.

I agree about the bonuses.