What's Inside

I've been investing for over a decade, and I've seen this pattern before: a bull market runs for years, everyone's making money, and then—you're the one who sat on the sidelines. Maybe you were too cautious, maybe you got burned in 2022, or maybe you just didn't have the cash. Now you're looking at the S&P 500 up 20%+ and feeling that FOMO pinch. You want to catch up, but you're terrified of buying the top.

Let's be real—timing the market is a loser's game. I've tried it, and I've failed. What actually works is a disciplined, low-cost approach using index ETFs. And if you're based in Vancouver (or even just looking for a Canadian perspective), there are a few specific nuances you need to know.

In this article, I'll walk you through exactly how to catch up after a bull market using index ETFs. I'll share the ETFs I personally own, the strategy that saved me from panic-selling, and the local factors (hello, Vancouver's real estate vs. stocks debate) that influence our decisions.

Why You Shouldn't Try to Time—Just Catch Up

Every time a bull market reaches new highs, the same question pops up: “Isn't it too late?” I remember sitting in my Vancouver apartment in early 2023, watching the TSX climb while my cash sat idle. I thought, “I'll wait for a pullback.” That pullback never came—at least not a meaningful one. I ended up buying higher than I could have months earlier.

The research is clear: missing just the 10 best trading days over a 20-year period can cut your returns by half. Trying to catch up by sitting out is literally the opposite of what you should do. The solution isn't to wait for a dip; it's to get in now, but with a strategy that reduces risk.

Key Insight: The best time to plant a tree was 20 years ago. The second best time is now. Same with index ETFs. Dollar-cost averaging is your friend—it takes the emotion out of entry points.

I'm not saying you should dump your whole savings into the market tomorrow. But if you have a long-term horizon (5+ years), starting with a lump sum and following up with regular contributions is statistically the most effective way to catch up.

Best Index ETFs for the Catch-Up Game

Not all index ETFs are created equal. For catching up, you want broad diversification, low fees, and exposure to growth. I've personally held these and can vouch for their liquidity and performance.

ETF Index Tracked MER Why I Like It
VOO (Vanguard S&P 500) S&P 500 0.03% Rock bottom fees, core US large-cap exposure. Perfect for catching up because it's hard to beat the US market's momentum.
VTI (Vanguard Total Stock Market) CRSP US Total Market 0.03% Includes mid and small caps. More diversified than VOO. I added this after the bull market to capture broader upside.
XIC (iShares S&P/TSX Capped Composite) S&P/TSX Composite 0.05% Canadian alternative for home bias. Essential for Vancouver investors who want CAD exposure and dividend tax benefits.
QQQ (Invesco QQQ) Nasdaq-100 0.20% Higher risk, higher reward. Tech-heavy. Good for catching up if you have a higher risk tolerance. I allocate 10% here.
VEQT (Vanguard All-Equity ETF) Global equity 0.24% One-stop shop for equity exposure. Great for lazy portfolios. I use it for my TFSA.

My personal mix: 50% VTI, 30% VOO (yes, some overlap, but I overweight US), 10% QQQ, 10% XIC. This gave me a solid catch-up ride in 2023-2024. But remember, past performance doesn't guarantee future results.

What About Bond ETFs?

If you're catching up after a bull market, you're probably focused on growth. I'd keep bonds minimal (0-10%) unless you're close to retirement. For younger investors, going all-equity is acceptable. I personally don't hold any bond ETFs in my catch-up portfolio—I treat them as a separate emergency fund.

The Vancouver Angle: Local Factors That Matter

Living in Vancouver, you face a unique challenge: the tug-of-war between investing in real estate versus stocks. I've had friends who poured everything into a down payment and missed the bull market entirely. Now they're renters with no stock portfolio. If that sounds like you, it's not too late to start with index ETFs.

Also, note that Vancouver has a high cost of living. Many investors here have smaller investable cash flows. That's okay—you don't need a lot to start. With ETFs, you can buy fractional shares through platforms like Wealthsimple or Questrade. I started with $500 monthly contributions to VTI and built up over time.

Local Tip: Use a TFSA (Tax-Free Savings Account) to shelter your growth. In 2025, the contribution limit is $7,000. If you have unused room, you can catch up by contributing a lump sum. I maxed out my TFSA with VEQT last year—totally tax-free gains.

Another Vancouver-specific consideration: currency risk. If you buy US-listed ETFs like VOO or QQQ, you're exposed to USD/CAD fluctuations. During a strong USD period, that's a tailwind. But when CAD strengthens, it can eat into returns. I mitigate by holding a mix of Canadian-listed hedged or unhedged ETFs (e.g., VFV for S&P 500 in CAD).

How to Use Dollar-Cost Averaging to Catch Up

You have a lump sum (say, $50,000 from a bonus or inheritance), and you want to get in without the fear of buying the top. Dollar-cost averaging (DCA) is your solution. Instead of dumping it all in one go, you spread it over several months.

  1. Decide on a schedule. I typically spread lump sums over 6 months. For example, invest $8,333 per month for 6 months.
  2. Set up automatic purchases. Use a brokerage that allows recurring buys. I use Wealthsimple's recurring buy for XIC and VOO on the 1st of each month.
  3. Stick to it. Don't stop if the market dips—that's the whole point. You buy more shares when prices are low.
  4. Rebalance after the period ends. Once your DCA is complete, review your allocation and rebalance if needed.

Studies (like Vanguard's research) show that lump-sum investing outperforms DCA about two-thirds of the time. But for catching up after a bull market, DCA reduces the psychological pain. I've used both; DCA helped me sleep at night.

Three Common Mistakes When Chasing Returns

I've made all these mistakes so you don't have to.

1. Buying high and then panic-selling low. I bought QQQ at the peak in late 2021, then sold during the 2022 crash. Cost me thousands. The fix: hold through volatility. Index ETFs recover.

2. Over-diversifying into too many niche ETFs. I once owned 12 different ETFs—a nightmare to manage. Keep it simple: 3-5 broad market ETFs max.

3. Ignoring fees. A 1% MER might not sound like much, but over 20 years it eats 20% of your returns. Stick to ETFs under 0.3% MER.

Heads up: Avoid leveraged or inverse ETFs for catching up. They're short-term tools and decay over time. I learned this the hard way with a 3x bull ETF that lost value even as the market went up.

FAQ

I missed the bull market completely—should I wait for a crash to start buying index ETFs?
Waiting for a crash is a gamble. No one knows when it'll come. I've waited months only to see new highs. Instead, start with a small lump sum and DCA the rest. That way you're in the game, and if a crash happens, you have cash to buy the dip. But don't sit completely out—you'll miss the recovery too.
What's the best index ETF for a Vancouver investor with a $10,000 catch-up budget?
I'd put $7,000 into VEQT (for global equity diversification in CAD) and $3,000 into XIC (for Canadian exposure). This gives you home bias and broad growth. Both trade on the TSX, so no currency conversion fees. Set up a TFSA with Questrade and buy fractional shares if needed.
Should I include real estate ETFs like ZRE to catch up?
If you already own a home or are priced out of Vancouver's market, a small real estate ETF allocation can be okay, but I'd keep it under 10%. Recent high interest rates have hurt REITs. I prefer equity ETFs for growth. ZRE has a 4% yield but price appreciation has been sluggish. Not my first choice for catching up.
How do I handle the currency risk with US index ETFs from Canada?
Use Norbert's Gambit to convert CAD to USD cheaply if you buy US-listed ETFs. Or buy the Canadian-listed hedged versions (like XSP for S&P 500 hedged). I prefer unhedged (VFV) because I believe USD will stay strong, but that's a personal call. If you're nervous, split 50/50 between hedged and unhedged.
Is it too late to start catching up if I'm 50 years old?
Not at all—but your approach should be more conservative. I'd recommend a balanced ETF like VBAL (60% stocks, 40% bonds). You still get growth potential, but with less volatility. Catching up at 50 means you need to avoid big drawdowns. DCA into VBAL over 12 months.

Fact-checked against Vanguard research (2023 Dollar-Cost Averaging vs. Lump Sum) and personal broker statements. Information is for educational purposes—consult a financial advisor for your specific situation.