All-in-One ETFs take the guesswork out of the investment process by:
- Offering built-in diversification through exposure to various asset classes across different countries.
- Rebalancing your portfolio annually.
- Offering a lower-cost investment solution managed by professionals, and more.
If you are considering becoming a self-directed investor and would rather not spend endless hours researching individual stocks and bonds, an all-in-one portfolio ETF may be a good place to start your journey.
Read on to learn about the best all-in-one ETFs currently being offered by Fidelity Canada.
Fidelity All-in-One ETFs
Fidelity Canada introduced two one-ticket ETF solutions in 2021 including:
- Fidelity All-in-One Balanced ETF (FBAL)
- Fidelity All-in-One Growth ETF (FGRO)
Both ETFs can be held in registered (e.g. TFSA and RRSP) and non-registered investment accounts. They are also suitable for medium- to long-term investment goals.
I summarize what makes up each ETF below and how to buy them in Canada.
Fidelity All-in-One Balanced ETF (FBAL)
As per Fidelity, FBAL is:
Designed for investors who are looking for long-term capital growth through a balanced approach.
It generally holds a mix of 59% equities, 39% fixed income securities, and 2% cryptocurrencies held in underlying Fidelity ETFs that are rebalanced annually.
As of December 31, 2021, FBAL consisted of 14 Fidelity-managed ETFs.
From a diversification point of view, FBAL is globally diversified across sectors and countries.
As of December 31, 2021, the top-5 sectors included:
- Financials: 13.2%
- Information Technology: 11.5%
- Industrials: 6.9%
- Consumer Staples: 5.5%
- Materials: 5.1%
And, its top-5 country allocations as of December 31, 2021, were:
- Canada: 51.6%
- United States: 32.0%
- Japan: 3.5%
- United Kingdom: 2.6%
- Germany: 1.9%
Robust global diversification of assets can help lower portfolio risk and increase performance over time.
Fees-wise, the Management Expense Ratio (MER) for FBAL was 0.39% as of September 30, 2021. This translates to only $39 per $10,000 investment per year.
Learn more in this detailed FBAL review.
Fidelity All-in-One Growth ETF (FGRO)
As per Fidelity, FGRO is:
Designed for investors who are looking for long-term capital growth and want more emphasis on equity securities.
With an 82% equity, 15% fixed income, and 3% cryptocurrencies mix from 14 underlying Fidelity ETFs, FGRO also provides diversification across industry sectors, countries, and asset classes.
As of December 31, 2021, the top-5 sectors included:
- Financials: 17.8%
- Information Technology: 15.7%
- Industrials: 9.4%
- Consumer Staples: 7.5%
- Materials: 7.0%
And FGRO’s top-5 country allocations as of December 31, 2021, were:
- United States: 44.1%
- Canada: 34.5%
- Japan: 4.9%
- United Kingdom: 3.2%
- France: 2.4%
With an MER of 0.41% as of September 30, 2021, you only pay $41 per $10,000 investment per year.
Learn more about this fund in my detailed FGRO review.
More recently in 2022, Fidelity launched two new All-in-One ETFs:
Fidelity All-in-One Conservative ETF (FCNS): This ETF offers exposure to a diversified portfolio of equities and fixed-income assets, with generally more emphasis on fixed income securities, plus approximately 1% of the fund is invested in cryptocurrencies.
Fidelity All-in-One Equity ETF (FEQT): This ETF provides exposure to a diversified mix of global equities and approximately 3% is invested in cryptocurrencies.
How To Buy Fidelity All-in-One ETFs
Investors can easily buy or sell FGRO and FBAL using many of the popular stock and ETF trading platforms in Canada, including:
- BMO InvestorLine
- CIBC Investor’s Edge
- Desjardins Online Brokerage (Disnat)
- Interactive Brokers
- National Bank Direct Brokerage
- Questrade
- Qtrade
- RBC Direct Investing
- Scotia iTrade
- TD Direct Investing
- Virtual Brokers
Conclusion
There are many benefits to simplifying your investment portfolio.
If you struggle with staying on top of your portfolio’s rebalancing needs or deciding on which assets to purchase and in what proportions, an All-in-One ETF may solve these problems.
In addition to the simplicity they offer, you could also enjoy global diversification, professional wealth management, and potentially lower investment costs.
Check out my step-by-step guide for buying Fidelity ETFs using a brokerage account here.
This article was sponsored by Fidelity.ca. All opinions are mine.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in ETFs. Fidelity’s All-in-One ETFs pay indirect management fees through their investments in underlying Fidelity ETFs that pay management fees and incur trading expenses (in addition to the indirect management fee, the Fidelity ETFs will also pay indirectly the operating expenses of the underlying Fidelity ETFs). Please read the ETF’s prospectus, which contains detailed investment information, before investing. ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
The ETFs invest in underlying Fidelity ETFs that charge a direct management fee, and as a result, pay an indirect management fee. Based on the management fee and the anticipated weightings of the underlying Fidelity ETFs, it is expected that the effective, indirect management fee for Fidelity All-in-One Conservative ETF will be approximately 0.34%, Fidelity All-in-One Balanced ETF 0.35%, Fidelity All-in-One Growth ETF 0.37%, and Fidelity All-in-One Equity ETF 0.38%. Actual indirect management fees will be reflected in the management expense ratio in addition to applicable taxes, fixed administration fees, portfolio transaction costs and expenses (fund costs), as applicable, of each ETF, posted semi-annually.
While the ETFs are typically managed to the neutral mix constraints indicated, the funds may deviate from it. If the portfolio deviates from its neutral mix by greater than 5% between annual rebalances, the portfolio will also be rebalanced back to its neutral mix.
The investment risk level indicated is required to be determined in accordance with the Canadian Securities Administrators standardized risk classification methodology, which is based on the historical volatility of a fund, as measured by the ten-year annualized standard deviation of the returns of a fund or those of a reference index, in the case of a new fund.
The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, Fidelity cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.
Certain statements in this commentary may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest, and assuming no changes to applicable tax or other laws or government regulation. Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable and, accordingly, may prove to be incorrect at a future date. FLS are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any FLS. A number of important factors can contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition and catastrophic events. You should avoid placing any undue reliance on FLS. Further, there is no specific intention of updating any FLS, whether as a result of new information, future events or otherwise.
