Best all-in-one ETFs for Canadian investors 2026

No category generated more discussion and debate from our selection panel this year than that for one-decision or all-in-one ETFs meant to provide a diversified portfolio in a single investment product. (The financial industry likes to call them asset-allocation ETFs.) 

Some argued that it’s wrong to simply name one fund—say, XEQT—the best of the group since an all-equity fund like that will not be suitable for all, indeed most, investors. 

“The most important factor in choosing an asset-allocation ETF is the investor’s risk tolerance and time horizon. A balanced ETF, for example, could be completely inappropriate for someone who should be in a growth portfolio—or too aggressive for someone with a shorter time horizon,” noted panellist Michelle Robertson. “Many people assume there’s a single ‘best’ option, rather than realizing they need to choose the one that aligns with their specific situation.”

Fair point. For that reason, we’ve highlighted four funds representing different risk/return profiles. We’d recommend readers determine first which profile suits them best and only then choose between the different fund companies’ offerings in that segment. All the major providers—iShares, BMO, Vanguard, TD and Global X—offer suites of asset-allocation funds with conservative (usually 40% stocks, 60% fixed income), balanced (60/40), growth (80/20) and all-equity options.

Our picks for the best asset-allocation ETFs

ETFTickerManagement feeMERHoldingsDescription

iShares Core Equity ETF Portfolio	XEQT	0.17%	0.20%	5 ETFs/8,425 u/l	Global diversified stock fund, ~45% US, 25% Canada, 25% EAFE
iShares Core Growth ETF Portfolio	XGRO	0.17%	0.20%	8 ETFs/21,875 u/l	80% equity/20% bonds portfolio
iShares Core Balanced ETF Portfolio	XBAL	0.17%	0.19%	8 ETFs	Classic 60/40 stock/bond portfolio in one affordable package
Vanguard Balanced ETF Portfolio	VBAL	0.22%	0.24%	9 ETFs/>30,000 u/l	The original asset allocation fund in Canada, 2.54% yield

As in the past, our panel leaned toward all-equity funds suitable for more aggressive investors and/or those with longer timelines. Hence the top vote-getter was the iShares Core Equity ETF Portfolio (XEQT), followed by similar portfolios from Vanguard (VEQT) and BMO (ZEQT).

Among growth solutions, the iShares Core Growth ETF Portfolio (XGRO) topped our voting. And among balanced funds, the iShares Core Balanced Portfolio (XBAL) and Vanguard Balanced ETF Portfolio (VBAL) tied for the lead. There were no conservative funds nominated by our panel, but all the major fund companies have offerings in that segment with expense ratios matching their more equity-oriented portfolios.

It should be noted, too, a few of our judges just plain don’t like all-in-one funds. “These ETFs are marketed as set-it-and-forget-it solutions, but my sense is these allocations may be embedding more directional risk than the average investor realizes,” cautioned panellist Aman Raina. Not only are they concentrated geographically, typically more than 40% in U.S. equities, they are concentrated in the technology space. “The reality is a significant portion of the returns driving these allocations has been concentrated in a narrow AI-driven trade.”

Of all the categories we cover, however, this is the one seeing the most price competition recently. Both BMO and Vanguard have cut the fees on their asset-allocation ETFs over the past year, bringing them down below what was until recently the industry standard of 0.2%.

And as some of our other judges pointed out, a one-decision ETF need not serve as the solution for all an investor’s accounts and purposes. They might work in a smaller TFSA or taxable account for an investor who deploys a number of ETFs (and perhaps even individual stocks) in their larger retirement account. The takeaway: come up with a solution that works best for you.

Watch: Asset-Allocation ETFs

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