5 BMO All-In-One ETF Series (2024): One-Ticket Solutions

The main value of investing through an ETF is that it diversifies you across a basket of investments. Although an ETF usually has a specific asset class, sector, or geography, all-in-one solutions do exist.

All-In-One ETFs save the do-it-yourself investor from having to figure out:

• Diversification
• Asset Allocation
• Risk

While there are many asset managers in Canada, BMO is one of the top ETF providers by assets. Because of this, they have put together a very versatile ETF shelf for investors.

We’ll review the BMO all-in-one ETF series below, and discuss some features of the different options that are available to you as an investor.

Understanding Asset Allocation

One-ticket solutions are typically differentiated by asset allocation. Across most all-in-one solutions, the ETFs have different stock and bond weightings based on the fund’s advertised risk profile.

All-in-one ETFs have fairly standard names, and usually follow the following spectrum (from low to high risk):

• Very Conservative
• Conservative
• Balanced
• Growth
• Maximum Growth

 A very conservative ETF will likely be close to 100% invested in fixed income. A maximum growth ETF will be closer to a 100% investment in stocks.

All-in-one ETFs rarely diversify outside of stocks and bonds into other investments such as alternatives.

BMO All-In-One ETF Series

All-In-One ETF	Advertised Risk Rating	MER	Equity/Fixed Income %
ZCON	Low	0.20%	40/60
ZMI	Low-to-Medium	0.20%	55/35/10 (hybrid)
ZBAL	Low-to-Medium	0.20%	60/40
ZESG	Low-to-Medium	0.20%	60/40
ZGRO	Low-to-Medium	0.20%	80/20

1. BMO Conservative ETF

ZCON is BMO’s most conservative all-in-one ETF solution.  The ETF targets a 40% equity and 60% fixed income allocation, which is actually closer to a balanced asset allocation.

Conservative portfolios are typically closer to a 20% equity and 80% fixed income allocation.

ZCON has a fairly recent inception date and is a small ETF in terms of assets. It comes with a low MER when compared to most other ETFs and mutual funds.

The ETF offers a good dividend yield and pays distributions on a quarterly basis. BMO labels its conservative ETF as being low risk.

Despite being labelled as a conservative ETF, the risk profile for ZCON is closer to balanced. It is important to always look at the underlying asset allocation for each all-in-one solution to make sure that asset management companies are not being too aggressive with their branding.

2. BMO Monthly Income ETF

The BMO Monthly Income ETF is next on our list. Trading under the ticker ZMI, this ETF targets a 55% equity, 35% fixed income, and 10% hybrid allocation. The hybrid allocation can fluctuate between fixed income and equities.

ZMI has a longer performance track record than ZCON and is relatively larger in assets as well. It has an identical MER and is well priced for a monthly income ETF.

The ETF offers a great dividend yield and pays distributions on a monthly basis. BMO labels its monthly income ETF as being low-to-medium risk. 

A balanced portfolio is typically at an asset allocation of 50% equities and 50% fixed income. Sometimes this allocation can be a bit more aggressive, with 60% equities and 40% fixed income.

ZMI roughly fits in the balanced asset allocation category. It is a great option for a monthly income ETF, as it pays a great yield and comes at a low MER.

3. BMO Balanced ETF

BMO’s balanced ETF is next on our list, trading under the ticker ZBAL. ZBAL aims for a 60% equity and 40% fixed income allocation.

The ETF has the same inception date as the conservative portfolio but has considerably more assets under management.

ZBAL pays a good yield, but it is relatively lower than both ZMI’s and ZCON’s. Distributions for ZBAL are paid quarterly. BMO labels ZBAL as being low-to-medium risk. 

With a 60% allocation to equities, ZBAL is on the more aggressive end of the balanced fund spectrum. Despite this, the ETF is a great option for a balanced all-in-one solution because of its good dividend yield and low MER.

4. BMO Balanced ESG ETF

ZESG is another balanced all-in-one ETF, this time with the addition of ESG to its investment mandate. Like ZBAL, ZESG also targets a 60% equity and 40% fixed income allocation. ZESG is a fund-of-fund and underlying securities are selected based on environmental, social, and governance ratings.

ZESG has a very short performance track record due to its recent inception. It is a fairly small ETF in terms of assets under management. BMO labels ZESG as being low-to-medium risk. 

The ETF offers a relatively lower yield and pays distributions quarterly to investors.

Similar to ZBAL, the 60% allocation to equities makes ZESG an aggressive balanced fund. The ESG approach to investing may appeal to some investors and would make this a better choice than ZBAL in those cases.

5. BMO Growth ETF

The last BMO all-in-one ETF on our list is the growth ETF. This ETF trades under the ticker ZGRO and targets an 80% equity and 20% fixed income allocation.

ZGRO has the same inception date as the conservative and balanced ETFs but is a larger fund by assets. BMO labels ZGRO as being low-to-medium risk, which is an understatement for an 80-20 portfolio.

The ETF offers a relatively lower yield and also pays distributions quarterly.

If your objectives and risk tolerance allow for a riskier portfolio, this is the highest risk option on the BMO all-in-one shelf. Investopedia considers a high-risk portfolio as having an allocation to equities over 70%.

As a high-growth option, ZGRO is a good all-in-one ETF to consider from BMO.

Does BMO have an All-Equity ETF?

BMO does offer quite a few ETFs that have a 100% allocation to equities. These can generally be considered as being higher risk than ZGRO.

The all-in-one ETF series focuses on investments that are well-diversified across sectors, geographies, and asset classes. Individual, stand-alone ETFs usually target a specific region or sector.

The all-in-one ETF series from BMO is a small portion of their overall ETF shelf. They currently offer over 80 ETFs in Canada.

How to Buy BMO’s All-In-One ETF Series

The cheapest way to buy ETFs is from discount brokers. My top choices in Canada are:

To learn more, check out my full breakdown of the best trading platforms in Canada.

Conclusion

If you are looking for a one-ticket solution to hold in your account, BMO’s all-in-one series are great options to consider.

Each all-in-one ETF rebalances to its target allocation over time, saving investors some work when markets are volatile.

Which all-in-one ETF to purchase depends on your specific goals and objectives. Remember to align your risk tolerance with the overall riskiness of the ETF, and to perform thorough due diligence to make sure a fund’s risk is not being understated.

BMO is not the only asset manager in Canada to offer all-in-one ETFs. Several great options exist, so make sure to compare the ETFs across investment managers as well.