Best Vanguard All-in-One ETF Portfolios in Canada 2022

All-in-one asset allocation ETFs simply investing for beginners and experienced investors alike.

For example, the Vanguard all-in-one ETFs are designed with different investor risk profiles in mind, and they provide instant diversification along with low fees.

In addition to Vanguard, there are also all-in-one ETFs from BMO, iShares, Horizons, TD, and Fidelity.

This article covers the top all-in-one ETFs offered by Vanguard Canada.

Top Vanguard All-in-One ETFs

Vanguard ETFTickerStocks/Bond Ratio (%)MERRisk Rating
Vanguard Conservative Income ETF PortfolioVCIP20/800.24%Low
Vanguard Conservative ETF PortfolioVCNS40/600.24%Low
Vanguard Balanced ETF PortfolioVBAL60/400.24%Low to medium
Vanguard Growth ETF PortfolioVGRO80/200.24%Low to medium
Vanguard All-Equity PortfolioVEQT100/00.24%Medium
Vanguard Retirement Income ETF PortfolioVRIF50/500.32%Low to medium

Vanguard all-in-one ETFs are also referred to as “asset allocation ETFs.”

When choosing from these ready-made portfolios, you should consider whether it aligns with your risk tolerance.

As noted in the ETF names, the portfolios are either conservative, balanced, or growth-oriented.

Conservative or income portfolios have a low stock component, and they are designed to have reduced volatility.

Balanced portfolios may hold 50:50 or 60:40 stocks to bonds ratio, and they are expected to take advantage of equity growth while the bond components reduce volatility.

Growth portfolios are best suited to long-term investors with medium-to-high risk tolerance. These portfolios exhibit more volatility and can hold 80% to 100% equities.

Compared to the average mutual fund in Canada, these asset allocation ETFs from Vanguard have a low management fee.

Compare Vanguard All-in-One ETFs

After determining your risk tolerance and investment goals, you can look at what each fund offers below.

One way to objectively access your risk profile is to complete an investor questionnaire. Here’s a link to the one for Vanguard.

1. Vanguard Conservative Income ETF Portfolio

  • Management expense ratio (MER): 0.24%
  • Inception: January 29, 2019
  • Assets under management (AUM): $204.34 million
  • 12-month yield: 2.58%

The Vanguard Conservative Income ETF Portfolio (VCIP) is designed for conservative investors who are looking to protect their capital while earning income.

This low-risk ETF generally maintains an asset allocation comprising 80% fixed income securities and 20% equities (stocks).

VCIP pays an income distribution every quarter, and it is listed on the Toronto Stock Exchange.

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2. Vanguard Conservative ETF Portfolio

  • MER: 0.24%
  • Inception: January 25, 2018
  • AUM: $500.45 million
  • 12-month yield: 2.48%

VCNS is a Conservative Vanguard Canada ETF portfolio that combines income with moderate long-term capital growth.

Its assets allocation comprises approximately 40% stocks and 60% fixed income (bond) securities.

This low-risk ETF pays a quarterly distribution and may be suitable if you want some capital growth without assuming too much risk.

3. Vanguard Balanced ETF Portfolio

  • MER: 0.24%
  • Inception: January 25, 2018
  • AUM: $2.07 billion
  • 12-month yield: 2.34%

Vanguard’s balanced asset allocation ETF, VBAL, provides access to capital growth and a moderate level of income.

Unlike VCIP and VCNS, investors in this fund hold a higher percentage of stocks with a 60:40 equity/fixed income split.

While this ETF has a low-medium risk rating, it is far from aggressive, which is what the next two ETFs (VGRO and VEQT) are.

VABL also pays a quarterly distribution, but the yield is lower due to the higher equity component.

Learn more in this full VBAL review.

4.  Vanguard Growth ETF Portfolio

  • MER: 0.24%
  • Inception: January 25, 2018
  • AUM: $3.235 billion
  • 12-month yield: 2.22%

Vanguard Growth ETF Portfolio (VGRO) is a higher-risk fund since it comprises a much higher proportion of stocks at 80%.

This ETF focuses on providing long-term capital growth and may not be suitable if you are a conservative investor.

It has the same MERs as the Vanguard ETFs discussed earlier and pays a quarterly distribution.

If you are okay with asset price volatility and have a long investment horizon, this ETF may work for you.

Learn more about VGRO in this detailed review.

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5. Vanguard All-Equity ETF Portfolio

  • MER: 0.24%
  • Inception: January 29, 2019
  • AUM: $1.932 billion
  • 12-month yield: 1.67%

Vanguard’s all-equity ETF portfolio, VEQT, is designed for investors who are comfortable with market volatility. With a 100% concentration in stocks, this ETF will experience higher volatility than all the other all-in-one ETFs on this list.

This fund had a medium-risk rating. Since it is focused on equities investing and long-term capital growth, its income yield is on the lower end.

You can learn more about what it offers in this detailed VEQT review.

6. Vanguard Retirement Income ETF Portfolio

  • MER: 0.32%
  • Inception: September 9, 2020
  • AUM: $315.32 million
  • 12-month yield: 4.63%

VRIF, Vanguard’s retirement income ETF, is unlike the other asset allocation ETFs on this list.

This portfolio is designed to provide consistent income while generating some capital appreciation along the way.

If you want a portfolio that pays consistently high yields (~4%) and monthly distributions so you can budget your retirement income, this ETF simplifies the process.

It targets a 50% equity to 50% fixed income asset allocation and has a low-to-medium risk rating.

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What is an All-in-One ETF?

An All-in-One ETF is a fund of funds. What this means is that they are made up of other ETFs and give investors access to thousands of assets (both stocks and fixed income securities) in one place.

These ETFs automatically provide global diversification, and their risk levels cater to investors with different risk tolerances and goals.

Unlike traditional mutual funds, which offer similar diversification benefits, all-in-one ETFs are significantly cheaper.

How to Buy All-in-One ETFs in Canada

You can easily buy these ETFs in Canada by using an online broker or stock trading app.

A platform like Wealthsimple Trade allows you to buy and sell Vanguard ETFs for free.

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Benefits of Vanguard All-in-One ETFs

The advantages of using all-in-one ETFs include:

  • They are easy to purchase using a self-directed brokerage account
  • Requires limited effort to maintain as they are automatically rebalanced
  • Offer built-in diversification
  • Pre-made to fit with your risk tolerance
  • Low investment fees compared to mutual funds

Downsides of All-in-One ETFs

  • You don’t have a say in the assets held by the ETF
  • ETF providers typically design their all-in-one ETFs using other ETFs from the same company, which limits the potential capture of benefits from other providers
  • You may be able to design a similar portfolio by combining multiple individual ETFs and save a bit in fees

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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