Best All-in-One ETFs In Canada and Where to Buy Them
Canadian investors love exchange-traded funds (ETFs). According to the Canadian ETF Association, more than 1000 ETFs are available in Canada from more than 40 providers, the largest of which are Blackrock Canada (iShares), BMO Asset Management, and Vanguard Canada.
Recently, a new type of ETF has increased in popularity: the all-in-one ETF. But what are all-in-one ETFs, and how do they work? In this article, I cover the basics, including the pros and cons of all-in-ones, and I reveal my list of the top all-in-one ETFs in Canada today.
What Are All-In-One ETFs?
All-in-one ETFs, also referred to as asset allocation ETFs, consist of several underlying ETFs. Together, they provide investors with an all-in-one portfolio, an asset mix containing stocks and bonds, and global diversification. For Canadian all-in-one ETFs, that means optimal coverage across Canadian, US, and international markets.
All-In-One ETF Advantages
All-in-one ETFs offer several benefits and are generally well-suited for a large segment of investors. Here are the main advantages of buying an all-in-one ETF.
Low-Cost
While all-in-one ETFs are slightly more expensive to own than regular ETFs, they remain far cheaper than most actively managed mutual funds. Among my list of Canada’s best asset allocation ETFs, the MERs range between 0.15% and 0.25%. It’s not uncommon for a single actively-managed mutual fund to have a management expense ratio over 2.00%.
Easy to Buy
While most investments are incredibly easy to purchase, all-in-one ETFs are among the easiest. That’s because you can cover your entire asset mix using a single fund or with one click of a button on your smartphone. Robo advisors aside, there may not be an easier way to invest.
Alternatively, if you build a portfolio using individual stocks or ETFs, you’ll need to purchase several different securities or funds to achieve the proper asset mix.
Instant Diversification
As you’ll see from our “Best of” list below when you buy an all-in-one ETF, your full asset mix is covered, and you achieve instant portfolio diversification across industries and global markets.
Take VBAL, for example, Vanguard’s Balanced ETF Portfolio. You can purchase this all-in-one ETF with a single click. The ETF features a low to medium risk rating with a 60/40 ratio of stocks to bonds. The MER is a paltry 0.22%.
Here’s what you are buying:
- Made up of 7 Vanguard Canada ETFs
- Holds 13,579 individual stocks and over 18,000 bonds
- Fund holds large, medium, and small-cap companies (80% large-cap)
- The fund holds stocks in Canada, the US, Europe, Asia, and Australia, and includes emerging markets.
- Eleven industry segments are represented, including financials, technology, industrials, telecommunications, and real estate.
Automatic Rebalancing,
An all-in-one ETF fund manager has to ensure that the fund’s asset mix doesn’t change. If you purchase VBAL partly because your ideal asset allocation is 60/40, you don’t want fluctuating markets to shift that mix to 70/30 or 40/60 over time.
You could achieve the same asset mix with a portfolio of individual stocks, bonds, or single ETFs. Still, you would be responsible for rebalancing your portfolio on your own to maintain the proper combination. With an all-in-one ETF, the fund managers handle all of the rebalancings.
Canada’s Top All-In-One ETFs
Now that we’ve covered some all-in-one ETF basics, and without further ado, here is my list of the best all-in-one ETFs in Canada. It includes twenty different funds, grouped within five different fund families. I’m not ranking the different fund families in any particular order but will note some defining characteristics of each.
Vanguard Asset Allocation ETFs
Vanguard is a registered investment firm founded by John C. Bogle in the US in 1975. Since then, they’ve expanded globally, with offices in several countries, including Canada. The Vanguard name is synonymous with ETFs, and in Canada alone, they offer close to 40 funds with total assets under management of over $45 billion (2022).
Vanguard offers the most all-in-one ETFs, with six different funds to choose from. While other fund families only have three all-in-one ETFs, having more funds makes it easier for investors to match their ideal asset allocation. At 0.22%, the Vanguard MERs are competitive (one exception is VRIF, with a slightly higher MER of 0.29%).
| ETF | Ticker | MER | Asset Allocation (Stocks/Bonds)% | Risk Rating |
|---|---|---|---|---|
| Vanguard Conservative Income ETF Portfolio | VCIP | 0.22% | 20/80 | Low |
| Vanguard Conservative ETF Portfolio | VCNS | 0.22% | 40/60 | Low |
| Vanguard Retirement Income ETF Portfolio | VRIF | 0.29% | 50/50 | Low to Medium |
| Vanguard Balanced ETF Portfolio | VBAL | 0.22% | 60/40 | Low to Medium |
| Vanguard Growth ETF Portfolio | VGRO | 0.22% | 80/20 | Low to Medium |
| Vanguard All-Equity ETF Portfolio | VEQT | 0.22% | 100/0 | Medium |
Vanguard all-in-one ETFs comprise a mix of the following single Vanguard ETFs, with the weightings varying by asset allocation.
- Vanguard Canadian Aggregate Bond Index ETF (VAB)
- Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (VBU)
- Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (VBG)
- Vanguard FTSE Canada All Cap Index ETF (VCN)
- Vanguard U.S. Total Market Index ETF (VUN)
- Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
- Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
Blackrock iShares All-In-One ETFs
Like Vanguard, Blackrock is also a large US investment firm, which manages funds on a global scale. Their Canadian division offers five all-in-one ETFs under its iShares brand, with asset mixes ranging from 20/80 stocks and bonds to an all-equity portfolio (100/0). The iShares MERs are slightly lower than the Vanguard funds, at 0.20% across the board.
| ETF | Ticker | MER | Asset Allocation (Stocks/Bonds)% | Risk Rating |
|---|---|---|---|---|
| iShares Core Income Balanced ETF Portfolio | XINC | 0.20% | 20/80 | Low |
| iShares Core Conservative Balanced ETF Portfolio | XCNS | 0.20% | 40/60 | Low |
| iShares Core Income Balanced ETF Portfolio | XBAL | 0.20% | 60/40 | Low to Medium |
| iShares Core Growth ETF Portfolio | XGRO | 0.20% | 80/20 | Low to Medium |
| IShares Core Equity ETF Portfolio | XEQT | 0.20% | 100/0 | Low to Medium |
The iShares all-in-one ETF funds are comprised of the following eight iShares ETFs (XEQT only contains four equity funds).
- iShares Core Canadian ST Corp / Maple Bond Index ETF (XSH)
- iShares Core Canadian Universe Bond Index ETF (XBB)
- iShares U.S. Treasury Bond ETF (CAD-hedged) (GOVT)
- iShares Broad USD IG Corporate Bond ETF (CAD-hedged) (USIG)
- iShares Core S&P/TSX Capped Composite Index ETF (XIC)
- iShares Core S&P Total U.S. Stock Market ETF (ITOT)
- iShares Core MSCI EAFE IMI Index ETF (XEF)
- iShares Core MSCI Emerging Markets ETF (IEMG)
TD One-Click ETF Portfolios
TD Asset Management, a division of TD Bank Financial Group, offers their One-Click ETF portfolios as an all-in-one ETF solution. TD is unique on our list because its ETFs are comprised of 75% passively-managed index ETFs and 25% actively managed funds. This explains why their MERs, at 0.25%, are slightly higher than the other fund families.
| ETF | Ticker | MER | Asset Allocation (Stocks/Bonds)% | Risk Rating |
|---|---|---|---|---|
| TD One-Click Conservative ETF Portfolio | TOCC | 0.25% | 30/70 | Low |
| TD One-Click Moderate ETF Portfolio | TOCM | 0.25% | 60/40 | Low to Medium |
| TD One-Click Aggressive ETF Portfolio | TOCA | 0.25% | 90/10 | Low to Medium |
TDs One-Click Portfolios are comprised of the following 7 passively-managed ETFs and 7 actively-managed ETFs:
Passive:
- TD Canadian Aggregate Bond Index ETF (TDB)
- TD U.S. Long Term Treasury Bond ETF (TULB)
- TD Canadian Long Term Federal Bond ETF (TCLB)
- TD Canadian Equity Index ETF (TTP)
- TD U.S. Equity Index ETF (TPU)
- TD International Equity Index ETF (TPE)
- TD Global Technology Leaders Index ETF (TEC)
Active:
- TD Active Global Income ETF (TGFI)
- TD Select Short Term Corporate Bond Ladder ETF (TCSB)
- TD Active U.S. High Yield Bond ETF (TUHY)
- TD Q Global Dividend ETF (TQGD)
- TD Q Canadian Low Volatility ETF (TCLV)
- TD Active Global Equity Growth ETF (TGGR)
- TD Q U.S. Small-Mid Cap Equity ETF (TQSM)
BMO All-In-One-ETFs
Another large Canadian bank, BMO, offers it’s own all-in-one ETFs through it’s investment banking division, BMO Asset Management. Like TD, BMO offers three funds, but with lower management fees of 0.20%. Their asset mix isn’t as varied as TD’s, however. The most conservative portfolio is a 40% stock, 60% bond mix.
| ETF | Ticker | MER | Asset Allocation (Stocks/Bonds)% | Risk Rating |
|---|---|---|---|---|
| BMO Conservative ETF | ZCON | 0.20% | 40/60 | Low |
| BMO Balanced ETF | ZBAL | 0.20% | 60/40 | Low to Medium |
| BMO Growth ETF | ZGRO | 0.20% | 80/20 | Low to Medium |
BMO uses seven underlying ETFs in its all-in-one portfolios. Unlike other fund families, they don’t offer 100% equity all-in-one – each fund contains a mix of fixed-income securities.
- BMO Aggregate Bond Index ETF (ZAG)
- BMO Government Bond Index ETF (ZGB)
- BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF(ZMU)
- BMO S&P/TSX Capped Composite Index ETF (ZCN)
- BMO S&P 500 Index ETF (ZSP)
- BMO MSCI EAFE Index ETF (ZEA)
- BMO MSCI Emerging Markets Index ETF (ZEM)
Horizons ETFs
You may be surprised to know that Horizons is the 4th largest ETF provider in Canada based on AUM, with more than $20 billion under management, across 100 ETFs. They offer 3 all-in-one portfolios: HCON, HBAL, and HGRO. What stands out about the Horizons funds is their low MERs (0.15% – 0.17%), significantly lower than TD’s 0.25% management fee.
| ETF | Ticker | MER | Asset Allocation (Stocks/Bonds)% | Risk Rating |
|---|---|---|---|---|
| BMO Conservative ETF | ZCON | 0.20% | 40/60 | Low |
| BMO Balanced ETF | ZBAL | 0.20% | 60/40 | Low to Medium |
| BMO Growth ETF | ZGRO | 0.20% | 80/20 | Low to Medium |
Below are the seven underlying ETFs that comprise Horizons all-in-one ETFs:
- Horizons CDN Select Universe ETF (HBB)
- Horizons US Large Cap Index ETF (HULC)
- Horizons US 7-10 Year Treasury ETF (HTB)
- Horizons NASDAQ-100 Index ETF (HXQ)
- Horizons INTL Developed Markets ETF (HXDM)
- Horizons Europe 50 Index ETF (HXX)
- Horizons Emerging Markets ETF (HXEM)
Where Can I Buy All-In-One ETFs?
The easiest way to buy all-in-one ETFs is through a discount brokerage account. You can choose from more than a dozen discount brokers in Canada, with Questrade being our top choice here at MapleMoney. In my opinion, Questrade offers the best mix of service, a robust trading platform, and low fees.
Perhaps the best thing about Questrade is that there are no trading fees for ETF purchases. That’s right – it’s free for you to purchase all-in-one ETFs through your Questrade account. For more information on Questrade, check out our full review.
Should I Purchase an All-In-One ETF?
After reading this, you may wonder whether you should purchase an all-in-one ETF for your investment portfolio. All-in-ones are ideal for investors who want to combine low-cost investing with maximum simplicity, and when it comes to simplicity, they are hard to beat.
However, some downsides might be of concern for some investors. All-in-one MERs are higher than most broad-market index ETFs, which can be as low as 0.04%. And it can be difficult to fine-tune your asset allocation beyond the mixes offered by the fund family. But the bottom line is that all-in-one ETFs are perfectly suitable for the average Canadian investor.
