Best All-in-One ETFs in Canada

The simplest, most effective way to build a globally diversified, auto-rebalancing portfolio.

The Rise of Asset Allocation ETFs

Asset allocation ETFs (also known as "all-in-one" or "one-ticket" portfolios) are arguably the greatest financial innovation for retail investors in the last decade. By purchasing a single ticker symbol, you immediately own thousands of companies and bonds from across the globe, tailored to your exact risk tolerance.

Even better, the fund managers automatically rebalance the portfolio for you, forcing you to "buy low and sell high" without any emotional intervention or manual spreadsheets.

Comparing the Portfolios by Risk Level

The most critical decision when choosing an all-in-one ETF is selecting the right mix of stocks (equities) and bonds (fixed income).

1. 100% Equity Portfolios (Maximum Growth)

For young investors or those with a high risk tolerance who can stomach a 40%+ drop in their portfolio without panic-selling. There are zero bonds here to cushion the fall.

XEQT (iShares Core Equity ETF Portfolio): Roughly 45% US, 25% Canada, 25% International, 5% Emerging Markets.
VEQT (Vanguard All-Equity ETF Portfolio): Roughly 42% US, 30% Canada, 20% International, 8% Emerging Markets.

2. 80% Equity / 20% Bond Portfolios (Aggressive Growth)

The sweet spot for most long-term investors. The 20% bond allocation provides just enough dry powder to rebalance during a severe market crash, smoothing out the ride while still capturing immense growth.

XGRO (iShares Core Growth ETF Portfolio): Slightly more US exposure.
VGRO (Vanguard Growth ETF Portfolio): Slightly more Canadian exposure.

3. 60% Equity / 40% Bond Portfolios (Balanced)

The traditional "balanced portfolio" favored by classic financial advisors. Ideal for those approaching retirement or who prefer lower volatility.

XBAL (iShares Core Balanced ETF Portfolio): A steady mix designed to weather storms.
VBAL (Vanguard Balanced ETF Portfolio): A time-tested allocation model.

4. 40% Equity / 60% Bond Portfolios (Conservative)

Designed for retirees drawing down their portfolios or investors with a very low tolerance for risk.

XCNS (iShares Core Conservative Balanced ETF Portfolio): Prioritizes capital preservation.
VCNS (Vanguard Conservative ETF Portfolio): Heavy focus on stable income generation.

Vanguard vs. iShares: Which is Better?

The differences between the Vanguard (V) and iShares (X) portfolios are minimal. Both charge an exceptionally low MER (around 0.20% to 0.24%).

The primary difference lies in their home country bias. Vanguard allocates roughly 30% of the equity portion to Canadian stocks, while iShares allocates closer to 25%. Consequently, iShares holds slightly more US equity. Over a 30-year timeframe, their performance is expected to be remarkably similar.

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Frequently Asked Questions

What is an all-in-one ETF?

An all-in-one ETF (or asset allocation ETF) is a single fund that holds a globally diversified mix of stocks and bonds, automatically rebalancing to maintain a specific risk profile.

Should I choose Vanguard or iShares?

Both Vanguard and iShares offer excellent all-in-one ETFs with nearly identical MERs. iShares tends to hold slightly more US equity, while Vanguard has a slightly higher Canadian home bias.

Is XEQT better than VGRO?

They serve different purposes. XEQT is 100% equity for maximum long-term growth (and higher volatility), while VGRO is 80% equity / 20% bonds, providing a smoother ride during market downturns.