What Are All-in-One ETFs?
All-in-one ETFs (also called asset allocation ETFs) are single funds that hold a globally diversified mix of stocks and bonds. Buy one, and you're instantly invested in thousands of companies across Canada, the U.S., international markets, and emerging markets, automatically rebalanced by the fund manager.
They're the closest thing to a hands-off, professionally structured portfolio available to regular investors.
The Main Options
XEQT, iShares Core Equity ETF Portfolio
- Allocation: 100% equities (no bonds)
- Holdings: ~9,600 stocks globally
- MER: 0.20%
- Best for: Long time horizons (10+ years), high risk tolerance
- Expected long-term return: Historically ~7–9% annually before inflation
XEQT is designed for investors who don't need the money for many years and can stomach the ups and downs of a 100% stock portfolio.
XGRO, iShares Core Growth ETF Portfolio
- Allocation: 80% equities, 20% bonds
- MER: 0.20%
- Best for: Growth-oriented investors with a 7–10+ year horizon who want slightly smoother volatility
XBAL, iShares Core Balanced ETF Portfolio
- Allocation: 60% equities, 40% bonds
- MER: 0.20%
- Best for: Medium time horizons (5–10 years), moderate risk tolerance, such as saving for a home in 7 years
VGRO, Vanguard Growth ETF Portfolio
- Allocation: 80% equities, 20% bonds
- MER: 0.24%
- Best for: Very similar to XGRO; some investors prefer Vanguard's structure
VCNS / VCIP
- Vanguard's conservative (40% equity) and income (20% equity) options for very short timelines or capital preservation
How to Choose
A simple rule of thumb:
- Investing for 10+ years (retirement, long-term wealth): XEQT
- Investing for 5–10 years (medium-term goals): XGRO or VGRO
- Investing for 3–7 years (e.g., home down payment supplemental savings): XBAL
- Investing for under 3 years: Consider GICs or a high-interest savings ETF (like CASH.TO) instead
Why All-in-One ETFs Beat DIY Portfolios for Most People
Some investors build their own three-fund portfolios (VCN + XUU + XEF, for example) to save tiny amounts in fees. The difference is usually a few basis points, not worth the effort for most. All-in-one ETFs auto-rebalance, require no maintenance, and remove the temptation to tinker.
Ottawa Context
For Ottawa newcomers or early-career professionals starting to invest, the simplicity of all-in-one ETFs removes a major barrier: the feeling that investing is complicated. Open a TFSA on Wealthsimple, buy XEQT, set up automatic contributions of whatever fits your budget, and check back in a decade. Ottawa's tech sector workers, government employees, and healthcare professionals all increasingly use this approach for savings beyond their workplace pension.
Bottom Line
XEQT for long-term wealth. XBAL for medium-term goals. Pick one, buy it consistently, and resist the urge to switch. The biggest risk with all-in-one ETFs isn't the market. It's the investor who panic-sells during a downturn.
