All-In-One ETFs: The Solution for Simple, Virtually Hands-Off, Low-Cost Investing

All-in-one diversified ETF portfolios are becoming more available, as all three of the largest exchange-traded-fund providers (Vanguard, BlackRock/iShares and BMO) have launched them in the past year.

They are an excellent way for investors to own a complete portfolio that is diversified while keeping it simple.

If you want to dig further into All-in-One ETFs, MillionDollarJourney has a detailed comparison of Vanguard vs iShares vs BMO.

All-in-one ETFs composition

These ETFs include a batch of global stocks and bonds which are available to anyone with a brokerage account. This is great for those who don’t want to chose individual stocks or sectors, and want a low fee.

The composition of each of these all-in-on ETFs vary, with funds allocated anywhere between 20%-80% in stocks and the rest in bonds, so you can chose the right one depending on your risk tolerance. Additionally, all the funds offered by Vanguard have the same components but in varying proportions of stocks to bonds. BMO and iShare vary in specific holdings, but are similar in their approach. These funds includes Canadian, U.S. and overseas securities in varying proportions.

All-in-one ETFs pros

The simplicity that an all-in-one portfolio brings is a major upside to these funds.

Furthermore, this will reduce some administrative fees and tasks, such as reducing the number of trades, and rebalancing holdings. The fees are relatively low, and make for an easy option for those looking for a simple solution. The management fees range anywhere from 0.18% – 0.22%. This makes them an attractive low-fee investment options, contrary to traditional mutual funds.

All-in-one ETFs cons

One thing to look out for with these ETFs is that if you have a larger portfolio, you might need more flexibility. Furthermore, these funds have a significant amount of fixed income that, if you hold these securities in a taxable accounts, may not be tax-efficient. Last year, XGRO had significant capital gains of 6.84% which would be taxed if you don’t hold it in a TFSA or RRSP.

More about All-in-one ETFs

Canadian Couch Potato has a couple articles on iShares all-in-one ETF portfolios and Vanguards one fund solution. A further side-by-side comparison was published by The Globe and Mail in an article about balanced fund ETFs and diversification.

All-in-one ETFs on Stockchase

There are 5 all-in-one ETFs that have been reviewed by stock experts on Stockchase. 4 from Vanguard and 1 from iShares. Here are the all-in-one diversified ETFs with expert opinions on Stockchase…

Vanguard Conservative Income ETF (VCIP-T)

Vanguard Conservative Income ETF (VCIP-T) — Stockchase

A fixed-income Canadian ETF for seniors? This is 80% fixed income + 20% stocks. This is a good way to start for the average retail investors, but you can do better by looking outside Canada for more income (higher yields).

stockchase.com

Vanguard Conservative ETF Portfolio (VCNS-T)

Vanguard Conservative ETF Portfolio (VCNS-T) — Stockchase

The market loves these as they represent a one-stop ETF for market diversification. It is a balanced portfolio that holds 60% fixed income and 40% stocks. The stocks will be globally diversified as is the fixed income portion. It is an ETF of ETFs. It depends if this portfolio split fits your needs. The MER…

stockchase.com

Vanguard Balanced ETF Portfolio (VBAL-T)

Vanguard Balanced ETF Portfolio (VBAL-T) — Stockchase

Low, excellent MER. Best to put this into a TFSA, RRSP or LIRA for $40-100K. Would rather own a bank stock for 10 years than a 5-year bond. Go with an ETF that has less exposure to bonds and more in equities.

stockchase.com

Vanguard Growth ETF Portfolio (VGRO-T)

Vanguard Growth ETF Portfolio (VGRO-T) — Stockchase

Passively held balanced portfolio. This one is 80% equities, 20% fixed income which is pretty aggressive. Not a bad thing to have as a core part. But VBAL-T is better at this point in the cycle, with 60% equities, 40% fixed income.

stockchase.com

iShares Core Bal. ETF (XBAL-T)

iShares Core Bal. ETF (XBAL-T) — Stockchase

You buy it once and you don't have to do anything else if you buy it in a registered account. You don't have to think. MER is 18 basis points. Very cheap.

stockchase.com

All-in-one 100% Equity ETF

If you have a profile that justifies having no bonds in your portfolio, you might want to have a look at Vanguard’s VEQ-T which is an ETF that holds other ETFs. It’s an All-in-One 100% Equity Portfolio ETF offering a strong geographical diversification (Canada – US – International and Emerging Markets).

These new All-In-One ETFs, combined with Commission-Free ETFs purchases, are the best way to start investing quickly and build a strong low-cost portfolio.

Do you know other interesting all-in-one ETFs?