All-in-one ETF showdown TD vs. BMO vs. iShares vs. Vanguard: Which is best?

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Image courtesy Tawcan/Unsplash

By Bob Lai, Tawcan

Special to Financial Independence Hub

Over the years, I have come to really like the all-in-one ETFs from Vanguard and iShares. I like these ETFs because they are a simple way to diversify your portfolio across different sectors and countries. These ETFs also automatically rebalance regularly, making an investor’s life much easier.

Due to the popularity of the all-in-one ETFs, both TD and BMO also created similar ETFs. Which company offers the best all-in-one ETFs? Are TD ETFs better? Are iShares ETFs better? Are Vanguard ETFs better? Or are BMO ETFs better?

Let’s find out!

TD ETFs

TD has many different ETFs, including active ETFs, special focused ETFs, and broad market index ETFs that are well-suited for different investment strategies. When it comes to all-in-one ETFs, TD offers three different ETFs that were created in 2020:

All three of these TD all-in-one ETFs have a MER of 0.17%. This means if you have $1k invested in one of these ETFs, you effectively would pay $1.7 in fees every year, which is extremely cheap if you think about it.

Here are the historical performances of these three ETFs:

1 Yr 2 Yr 3 Yr
TCON 12.48% 9.63% 4.41%
TBAL 19.27% 14.96% 8.04%
TGRO 26.27% 20.16% 11.70%

You can buy and sell all three ETFs via online brokers. Since many brokers offer commission-free trades nowadays, you can buy one of these all-in-ones regularly and build up your portfolio.

BMO ETFs

Like TD, BMO offers five different all-in-one ETFs (BMO calls them Asset Allocated ETFs).

All five BMO all-in-ones have an MER of 0.20%.

ZBAL and ZESG are very similar, except ZESG is for investors looking to align their investments with their social values.

Here are the historical performances of the five BMO ETFs:

1 Yr 2 Yr 3 Yr
ZCON 13.94% 9.74% 4.79%
ZBAL 18.67% 13.10% 7.25%
ZESG 18.63% 14.61% 7.68%
ZGRO 23.52% 16.49% 9.71%
ZEQT 28.35% 19.83% 12.09%

ZCON, ZBAL, and ZESG have more than 40% exposure to Canada, while ZGRO and ZEQT are more heavily exposed to the US.

iShares ETFs

Like BMO, iShares offers five all-in-one ETFs. 

All five ETFs have an MER of 0.20%.

Here are the historical performances of the five iShares ETFs:

1 Yr 3 Yr
XINC 9.97% 2.81%
XCNS 14.38% 5.07%
XBAL 18.81% 7.70%
XGRO 23.47% 9.65%
XEQT 28.06% 11.92%

Vanguard ETFs

Finally, Vanguard all-in-one ETFs:

VRIF has an MER of 0.29%, while the other five all-in-ones have an MER of 0.22%. VRIF probably has a slightly higher MER because of the fund structure. Interestingly enough, Vanguard all-in-ones have the highest MER out of the four fund companies (I said this because historically Vanguard has lead the way when it comes to lowest MER).

Here are the historical performances of the Vanguard all-in-one ETFs:

1 Yr 3 Yr
VCIP 8.90% 1.99%
VRIF 10.44% 3.08%
VCNS 13.61% 4.45%
VBAL 18.40% 6.90%
VGRO 23.39% 9.39%
VEQT 28.40% 11.83%

The best all-in-one ETFs for your investment portfolio

As you can see, all four fund companies offer all-in-one ETFs with different asset exposures. Which are the best all-in-one ETFs for your investment portfolio?

Well, that is totally dependent on your risk tolerance and your investment timeline.

If you are an investor who is approaching retirement or is already retired, you might want to invest in something more conservative. In other words, you don’t want to lose sleep whenever there’s a market correction. For you, a steady investment income and stable portfolio value growth is more important. Therefore, you probably will go with either a conservative all-in-one ETF or a balanced all-in-one ETF.

If you are younger with a longer investment time horizon, you want to aim for portfolio growth. Therefore, you’d probably go with either a growth all-in-one ETF or an all-equity ETF to maximize your return over the long term.

Best Conservative All-in-One ETF

As mentioned, if you are a conservative investor who needs a steady investment income with stable portfolio value growth, a conservative all-in-one ETF is probably the best choice for you.

The question is, which conservative all-in-one ETF is the best?

Let’s compare TCON, ZCON, XINC, XCON, VCIP, VRIF, and VCONs all of which are heavily exposed to fixed income.

Fixed income to equities Mix MER  1 yr return 3 yr return 5 yr return Yield %
TCON 70-30 0.17% 12.48% 4.41% N/A 2.26%
ZCON 60-40 0.20% 13.94% 4.79% 4.87% 2.45%
XINC 80-20 0.20% 9.97% 2.81% 2.86% 2.70%
XCON 60-40 0.20% 14.38% 5.07% 5.35% 2.17%
VCIP 80-20 0.25% 8.90% 1.99% 2.11% 2.86%
VRIF 70-30 0.32% 10.44% 3.08% N/A 3.55%
VCON 60-40 0.24% 13.61% 4.45% 4.71% 2.51%

Among ZCON, XCON, and VCON, which all have the same 60-40 mix, it’s interesting to see that XCON had the best returns consistently, but XCON has the lowest distribution yield.

Among TCON, XINC, VCIP, and VRIF, TCON has had the highest returns, most likely due to the lower MER fees.

Not surprisingly, ETFs with a higher exposure to stocks have had higher returns in the last five years.

If I were a conservative investor, I’d probably prefer XCON over the other six conservative all-in-one ETFs due to the following reasons:

  • At 0.20% MER, it’s one of the lowest
  • BlackRock is behind the iShares funds, so no concerns with the integrity and financial stability of the company
  • 2.17% is a reasonable yield considering 60% of the ETF is made up of fixed income
Given the current low interest rate environment, I would not go with more than a 60-40 fixed income to equities mix. I believe if you hold too much fixed income, regardless of your risk tolerance and age, you will hurt your overall return in the long run.

Best Balanced All-in-One ETF 

What if you’re looking for a more balanced approach? What is the best balanced all-in-one ETF?

Let’s compare TBAL, ZBAL, ZESG, XBAL, and VBAL.

Fixed income to equities Mix MER  1 yr return 3 yr return 5 yr return Yield %
TBAL 40-60 0.17% 19.27% 8.04% N/A 1.28%
ZBAL 40-60 0.20% 18.67% 7.25% 7.42% 2.14%
XBAL 40-60 0.20% 18.81% 7.36% 7.70% 4.28%
VBAL 40-60 0.24% 18.40% 6.90% 7.29% 2.23%

Since all four of these balanced all-in-one ETFs have similar asset exposure mixes, it is not a surprise that the performances are all quite similar. I am surprised, however, that XBAL has a much higher yield than the other three ETFs.

TBAL has had slightly higher returns in the last three years, possibly caused by the lower MER. Interestingly, VBAL has the lowest returns and it happens to have the highest MER.

It is hard not to ignore TBAL, given the lowest MER and highest returns. But TBAL is relatively new (started in 2020) and has a lower trading volume than the other three. So it is something to consider if you decide to invest in TBAL.

Which is the best balanced all-in-one ETF? For me, I’d probably pick between TBAL or XBAL.My rationales are: TBAL has the higher returns and lowest MER, while XBAL because it is managed by iShares.

Having said that, it’s very hard to separate TBAL, ZBAL, XBAL, and VBAL because they’re so very close. Honestly, I don’t think you can go wrong with any one of them.

Best Growth all-in-one or all-equity ETFs 

Let’s compare the growth all-in-one ETFs and all-equity ETFs.

Fixed income to equities Mix MER  1 yr return 3 yr return 5 yr return Yield %
TGRO 10-90 0.17% 26.27% 20.16% N/A 0.32%
ZGRO 20-80 0.20% 23.52% 9.71% 9.97% 1.88%
XGRO 20-80 0.20% 23.47% 9.65% 10.08% 2.37%
VGRO 20-80 0.24% 23.39% 9.39% 9.86% 1.96%
ZEQT 0-100 0.20% 28.35% 12.09% N/A 1.66%
XEQT 0-100 0.20% 28.06% 11.92% 12.38% 1.98%
VEQT 0-100 0.24% 28.40% 11.83% 12.38% 1.52%

Given the market performance the last few years and the low interest rates environment, the all-equity ETFs have higher returns than ETFs that have fixed income exposure.

We invest in XEQT for both kids’ RESPs over VEQT because of the lower MER (XEQT used to have a higher exposure to the US market but not anymore). So we prefer XEQT over the other all-equity ETFs.

However, among ZEQT, XEQT, and VEQT, they’re all very close, so you can’t go wrong with any of them.

Now, if you are slightly more cautious and want to have some exposure to fixed income, I’d probably go with TGRO over the other growth all-in-one ETFs. Since it’s all about portfolio growth for the growth and all-equity ETFs, I would not put too much emphasis on distribution yield.

Why invest in an all-in-one ETF

Why do I recommend investing in an all-in-one ETF?

Simplicity and instant diversification.

These all-in-one ETFs are excellent for someone who’s just starting out on their investing journey. (In fact, I think these all-in-one ETFs are excellent for everyone!) By taking advantage of the commission-free trades that many Canadian online brokers offer, you can build up a sizable investment portfolio over time with one of these all-in-one ETFs.

Essentially, you can start a recurring contribution and purchase program and buy an all-in-one ETF of your choice without paying any trading fees. Furthermore, because of the extremely low MER, you are not forking out an arm and a leg for your investment. At the end of the day, you will have more money in your pocket!

Summary – Which all-in-one ETF is the best? 

It’s excellent that there are so many all-in-one ETFs available for Canadians. It is far easier to be a DIY investor now than 10 years ago. We can all be very grateful that the Canadian investing landscape has changed so much.

It’s a good idea to pick an all-in-one ETF based on your risk tolerance and your investment timeline. Once you pick one and start investing, it is important to stay in the market rather than jumping in and out of the market.

Happy investing everyone!

Hi there, I’m Bob from Vancouver, Canada. My wife & I started dividend investing in 2011 with the dream of living off dividends in our 40’s. Today our portfolio generates over $2,700 in dividends per month. This post originally appeared on Tawcan on March 10, 2025 and is republished on Findependence Hub with the permission of Bob Lai.

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