Although ETFs usually cover a specific theme, all-in-one solutions do exist and are great to consider if you are looking to simplify your investment approach. iShares is an ETF suite offered by Blackrock.
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, Blackrock is one of the top ETF providers in the world.
Understanding Asset Allocation
One-ticket solutions are typically differentiated by their allocation to equities and to fixed income. 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 generic names and usually look something like this (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.
We’ll provide an iShares’ all-in-one ETF overview below, and discuss some features of the different options that are available to you as an investor.
| All-In-One ETF | Advertised Risk Rating | MER | Equity/Fixed Income % |
| XINC | Low | 0.20% | 20/80 |
| XCNS | Low | 0.20% | 40/60 |
| XBAL | Low-to-Medium | 0.20% | 60/40 |
| XGRO | Low-to-Medium | 0.20% | 80/20 |
| XEQT | Low-to-Medium | 0.20% | 100/0 |
- Ticker: XINC.TO
- Inception Date: August 7, 2019
- Assets under Management: $35.54 million
- Management Expense Ratio: 0.20%
- Listed on: Toronto Stock Exchange
- Annualized Yield: 2.55%
- Stock Price: $19.22
- YTD Return: -0.56%
XINC is iShares’s most conservative all-in-one ETF solution. The ETF targets a 20% equity and 80% fixed income allocation and is a fund of funds.
XINC has a very short performance track record and is a very 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 decent yield and pays distributions on a quarterly basis. iShares labels its ETF as being low risk, which is a fair assessment of risk based on the ETF’s asset allocation.
XINC is fairly standard in terms of features when compared to other all-in-one conservative ETFs. It holds roughly eight underlying ETF positions, making it well diversified.
Because of the XINC’s small size, there is a risk in the future that it may close down due to a lack of assets.
Although XINC’s MER Is low compared to other conservative all-in-one ETFs from other asset managers, it is tough to recommend this ETF because of its small size.
- Ticker: XCNS.TO
- Inception Date: August 7, 2019
- Assets under Management: $77.63 million
- Management Expense Ratio: 0.20%
- Listed on: Toronto Stock Exchange
- Annualized Yield: 2.36%
- Stock Price: $21.46
- YTD Return: -0.05%
The iShares Core Conservative Balanced ETF Portfolio is next on our list. Trading under the ticker XCNS, this ETF targets a 40% equity and 60% fixed income allocation.
XCNS has an identical performance track record to XINC and is larger in assets. It’s offered at the same MER as XINC.
Although this ETF is likely not at risk of closing down in the near future due to size, it is still a relatively small all-in-one ETF.
XCNS offers a lower yield than XINC and also pays distributions on a quarterly basis. iShares labels its core conservative balanced ETF portfolio as low risk. Since the portfolio is composed of 40% stocks, a more accurate risk assessment of the fund is likely closer to being low-to-medium.
Again, iShares maintains a fairly standard portfolio, in line with other 60% fixed income and 40% equity portfolios. XCNS is a fund of funds with roughly eight underlying ETF positions.
It’s a great option if you are looking for a low-cost, 40% equity and 60% fixed income, all-in-one ETF.
- Ticker: XBAL.TO
- Inception Date: June 21, 2007
- Assets under Management: $866.71 million
- Management Expense Ratio: 0.20%
- Listed on: Toronto Stock Exchange
- Annualized Yield: 1.98%
- Stock Price: $26.84
- YTD Return: 0.41%
iShares’s balanced ETF is next on our list, trading under the ticker XBAL. XBAL aims for a 60% equity and 40% fixed income allocation. It is a fund of funds and holds roughly eight ETF holdings.
The core balanced portfolio has a long performance track record and is relatively much larger in assets under management than the other all-in-one ETFs covered up until now. It has an identical MER to the other ETFs on our list until now.
XBAL offers a fairly low yield, with distributions being paid out quarterly to investors. iShares labels XBAL as being low-to-medium risk, which is a fair risk assessment.
With a 60% allocation to equities, XBAL is on the more aggressive end of the balanced fund spectrum. Balanced funds usually have a 50% to 60% equity allocation.
XBAL is a great option to consider as a balanced, all-in-one ETF from iShares. You can read the full XBAL review here.
- Ticker: XGRO.TO
- Inception Date: June 21, 2007
- Assets under Management: $1.42 billion
- Management Expense Ratio: 0.20%
- Listed on: Toronto Stock Exchange
- Annualized Yield: 1.91%
- Stock Price: $26.22
- YTD Return: 0.86%
XGRO is the growth all-in-one ETF on the shelf from iShares. The ETF aims for an 80% equity and 20% fixed income allocation.
The ETF has the same inception date as the balanced ETF, meaning that it has a long performance track record. It is a massive ETF, with the largest asset size of the ETFs covered from iShares so far. iShares also labels XGRO as low-to-medium risk, which understates the actual risk of the fund.
XGRO pays a lower yield because of the reduced fixed income allocation. It pays out distributions on a quarterly basis. XGRO’s MER is the same as the other ETFs on the list so far.
As a growth, all-in-one ETF, XGRO is a great choice to consider for your portfolio. Be mindful that an 80% allocation to equities is likely considered to be higher risk than the low-to-medium label from iShares. You can read the full XGRO review here.
- Ticker: XEQT.TO
- Inception Date: August 7, 2019
- Assets under Management: $1.19 billion
- Management Expense Ratio: 0.20%
- Listed on: Toronto Stock Exchange
- Annualized Yield: 1.71%
- Stock Price: $28.35
- YTD Return: 1.3%
XEQT is the highest-risk option on the iShares all-in-one ETF shelf. As the name suggests, the ETF targets a 100% allocation to equities. XEQT is a fund of funds that invests in roughly four underlying ETFs.
The all-equity portfolio has a shorter track record, much like the more conservative all-in-one options from iShares. XEQT has attracted a lot of capital and is another very large ETF by assets.
iShares labels XEQT as low-to-medium risk, which is a large underestimation of risk. Stocks in general are considered at least medium risk by major brokerages in Canada.
The lack of fixed income brings the yield of XEQT to the lowest on our list. The ETF pays distributions on a quarterly basis. XEQT comes with the same MER as iShares’ other all-in-one ETFs covered so far.
If you are looking for a well-diversified, 100% equity all-in-one ETF, XEQT is a good option to consider. Read the full XEQT review here.
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Conclusion
If you are looking for a one-ticket solution to hold in your account, iShares from Blackrock is an excellent choice. The lineup from iShares comes with a low MER when compared to other Canadian all-in-one ETFs from competitors.
Which all-in-one ETF to purchase depends on your specific goals and objectives. Remember to perform thorough due diligence to make sure a fund’s risk is not being understated.
Equities are generally considered medium risk and bonds are generally considered low risk. These risk ratings can vary as the features of the stocks and bonds change.
Blackrock 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.
