ETFs and Diversification

Since ETFs are already diversified by virtue, and should you pick an ETF that is built from several other ETFs, then this strategy could make sense. MoneySense has an in-depth article in response to this subject by one of their readers.

The critical caveat with one single ETF is to chose well which one you buy, and what the fund is made up of.

Mike Philbrick on ETFs and Diversification

Can a single ETF create a diversified portfolio? It is possible to own one ETF to get diversification.  The only problem is tracking error.  If the TSX goes up 27% and the global market is only up 6%, then you will have investor anxiety.  You need an investment advisor to help balance this out.  The HRA-T ETF is a global, equal weighted ETF that he would recommend.

Could be possible, with a good investment advisor. The recommendation here is the HRA-T ETF.