Skip to main content
Open this photo in gallery:

Morsa Images/iStockPhoto / Getty Images

As younger Canadians start saving more of their money, they’re realizing something that older Canadians have known for years: easy, cost-effective access to investing can help you grow your retirement portfolio.

Over the last few years, many investors have bought exchange-traded funds (ETFs), low-cost investments that give you quick access to a basket of stocks and bonds. According to one survey, 42 per cent of those between the ages of 21 and 35 invest in ETFs. Use them in a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP) and away you go.

All-in-one ETFs could be a game-changer for busy, young professionals who don’t have time to pick their own investments. Here’s why:

1. Diversification

To reach your financial goals, you typically need to hold a diversified portfolio. When you diversify, you hold numerous stocks and bonds across a variety of asset classes and countries, so if one company gets into trouble, it won’t drag down your whole portfolio with it. All-in-one ETFs, similar to mutual funds, can hold diverse sets of equity and fixed income securities that help balance the overall experience, so no company-specific event can affect your returns.

2. Lower investment fees

Because of how ETFs are created and traded, they’re one of the lower-cost investment options on the market. With all-in-one ETFs, you’re paying a single fee for hundreds of securities.

3. Automatic rebalancing

As markets fluctuate, so does the value of assets held within portfolios. That 60 per cent you had in equities, for example, might account for 75 per cent of your holdings after an extended stock rally, while your fixed income assets may have gone down to 25 per cent from your original 40 per cent target. Investors must rebalance their portfolios regularly by purchasing or trading assets in the right amounts to get back to their desired allocation. Fortunately, with all-in-one ETFs, that rebalancing happens automatically. The funds adjust their holdings on a regular basis to maintain the target asset allocation.

4. Asset allocation

If you have a nearer-term goal like saving for your first house, or if you’re uncomfortable taking on too much risk, then consider holding a more even mix of equities and fixed income. At a younger age, you’ll still want to hold more equity, so you can get long-term growth, but the fixed income will lessen the ups and downs.

5. Investment management

With an all-in-one ETF, you hold a single security. The stocks and bonds that are inside of it are already chosen for you, and the fund is designed to help you build wealth for the future. If you want to get more conservative, maybe, as you get older, that’s also simple to do: move all your assets from one all-in-one to another.

Find out more about Fidelity All-in-One ETFs and how we can help you reach your financial goals faster.


Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds, asset allocation services and ETFs. Please read the mutual fund’s or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.

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, we 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. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment of any fund or portfolio. 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.

From time to time a manager, analyst or other Fidelity employee may express views regarding a particular company, security, and industry or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time, based upon markets and other conditions, and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity Fund.

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.

This information is for general knowledge only and should not be interpreted as tax advice or recommendations. Every individual’s situation is unique and should be reviewed by his or her own personal legal and tax consultants.

© 2021 Fidelity Investments Canada ULC. All rights reserved.


Advertising feature provided by Fidelity Investments Canada. The Globe and Mail’s editorial department was not involved.

Interact with The Globe