The Canadian asset allocation ETFs are game changers. This asset allocation ETF portfolio post/page will continually update the returns for the ETF providers. We’ll also compare the returns between the asset allocation ETF providers. And we’ll keep track by category, from the lower risk income category to the higher risk all-equity models. The tables will also offer the stock to bond (risk) ratios.
The asset allocation ETFs are game changers in Canada. In one ETF, you can get access to well-diversified global portfolios with total fees in the range of 0.17% to 0.28%. Compare that to mutual funds with fees in the area of 2.0%. Most Canadians should leave their mutual funds behind. It would likely be life changing. Send me a note if you want to learn how to make that move.
For those who want low-fee ETF portfolios with advice and planning, check out Justwealth – Canada’s leading Robo Advisor.
Welcome to the ultimate asset allocation ETF page.
First, we’ll look at the returns for each of the ETF providers including their full suite of ETF offerings. That will be followed by the comparison tables between the ETF providers. The performance tables will be updated on a regular basis, at least quarterly. The tables below are to the end of August 2024. These are total returns and include all management fees.
Buy ETFs at no cost
You may have trading costs. But remember, some discount brokerages offer free trades .
At Questrade you can buy Canadian ETFs for free.
For the following tables, 1-year, 3-year and 5-year is the average annual return. Please let me know if you spot an error. Use the contact form. 🙂
The returns for Canada’s Asset Allocation ETFs
The returns are updated to the end of August 2024.
You might consider the Fidelity asset allocation ETFs. I have not included them as they hold a 1-3% position in bitcoin (I’m a fan of that), and they use more active management. That is not always everyone’s cup of tea.
But they have greatly outperformed traditonal balanced portfolio models used by the following providers. Readers will know that I am fan of a modest amount of bitcoin in balanced portfolios.
Horizons Asset Allocation ETF review.
Keep in mind that HCON and HBAL changed their asset allocation in 2023. Previously HCON was 50/50, while HBAL was 70/30. The additional equity weighting provided a modest return boost.
Note this post is being updated on the morning of January 5, 2025
Vanguard Asset Allocation ETF review.
iShares Asset Allocation ETFs review.
BMO Asset Allocation ETFs review.
In January of 2022 BMO also introduced ZEQT, an all-equity option.
TD Asset Allocation ETF (One Click) review
Asset Allocation ETF comparisons by risk level
What are the top-performing Asset Allocation ETFs?
The returns are updated to the end of December 2024.
Income models
Conservative models
Balanced models
Balanced growth models
All equity models
Here’s an example of the bitcoin boost. The Fidelity all equity FEQT ETF delivered 29.52% in 2024.
Which Asset Allocation ETF to select?
You’ll find some direction (not advice) on the Core Couch Potato page on MoneySense. Reach out to me if you want help on portfolio selection – use the Contact Dale button.
Here’s the key table. You’ll find a few examples of the appropriate asset allocation ETFs for each risk category. Always ensure that you are investing within your risk tolerance level.
For cash and GIC options you can look to EQ Bank.
And here’s a post with more options for cash and GICs.
Buying Asset Allocation ETFs
To purchase an asset allocation ETF you would need to open an account with a discount brokerage. While these ETFs are comprehensive funds, they trade a like a stock. Many Cut The Crap Investing readers have turned to Questrade – Canada’s top-ranked discount brokerage. Once again, you can purchase ETFs, including the asset allocation ETFs for free.
You can open an account through this Questrade partnership link.
Before you invest, please ensure that you understand the risks and tax consequences. It is also crucial that you invest within your risk tolerance level.
ETF Portfolios with advice and financial planning?
If you feel that you need advice, financial planning in addition to low-fee ETF portfolios, check out Justwealth, Canada’s top robo advisor.
If you are comfortable buying ETFs and rebalancing your portfolio you can build your own ETF portfolio.
If you have any questions, please feel free to reach out by way of the Contact Dale button at the top of this page.
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ETFs / Stock Portfolios / Retirement / Wealth Creation
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There is a modest annual fee.
Thanks for reading and sharing this post.
Good morning Dale
Just going over your blog this morning and found the one ticket ETF table a little odd.
As a retired investor it would appear that it would be impossible to set up a income stream using only dividends as the table only show’s purchasing stocks if you have over 7 years of recoup timeframe
Hi Dan, sorry for the late reply. A retiree can certainly use the Asset Allocation ETFs to fund retirement. That would be by way of the ETF income and from share harvesting (selling share to meet income needs).
Remember the 4% ‘rule’ is based upon a simple balanced portfolio.
I like the idea of greater dividends for retirement in concert with share harvesting. The best of all worlds IMHO.
Check out my recent retirement video.
https://www.youtube.com/watch?v=AuacI3RI1o0&t=18s
The next video will focus on using dividends within the retirement portfolio.
Great article Dale. I like the idea of using dividends from our non-registered account and our TFSA’s and the all in one ETF for our registered accounts.
Does anyone have these ETF’s that don’t hold any Canadian stocks?
Next year we are thinking of converting all our registered accounts to RIF’s. We are currently retired. Drawing non-eligible dividends from our company and eligible dividends in our non-registered account. Our company money should be depleted next year some time and we will start CPP, OAS and RIF’s then to make up the difference.
The registered accounts all hold 70% ZSP, 10% in a HISA, 10% in ZCB and 10% in ZAG.
What are your thoughts?
Very good and useful piece of work, thank you Dale.
My pleasure, and thanks.
Great layout, concise info, tks
When will u be updating the # into 2022?
Thanks Bob, I will get to that this week, or this weekend.
Dale
This is now updated to the end of April 2022.
Fidelity is now in this space- a kind of active/passive product. I think they have 1 year returns available. Will you be adding them to your list?
I am having a look. I will have to request the info. Not much on their site.
I always look forward to reading your deep dives on ETF’s. Love the comparison charts, thanks for updating and including the TD funds!
I currently own HBAL in a TFSA and plan to add $$ from GIC’s that will be maturing over the next 3-9 months, then continue with annual deposits. Most of my investments are at TD and they do not charge a fee to trade TD ETF’s.
In order to minimize fees, I’m debating whether or not to switch from HBAL to TBAL (or maybe TGRO as I won’t need to access funds for 7+ years)
Aside from the returns, are there other factors that should be considered to determine if it’s worth switching from Horizons(Global) to the TD funds? Any insights you can share would be appreciated! Thanks.
Hi Michelle, thanks for dropping by and I’m glad you enjoy the ETF content. If you are passive and just adding funds on a regular schedule, your trading fees might be minimal.
That said, HBAL and TBAL are both great. It’s hard to go wrong here.
How often to you add monies / make purchases?