Educational Disclaimer: Maple Wealth Guide provides general financial education only. We do not offer financial, investment, tax, or legal advice. Nothing on this website should be considered a recommendation. Always consult a licensed professional for personalized guidance.
What Is a Balanced ETF?
A balanced ETF (also called an all-in-one or asset allocation ETF) combines stocks and bonds in a single fund. You buy one ETF and get instant diversification across asset classes, countries, and thousands of securities.
It's the simplest possible way to build a properly diversified portfolio.
Why Balanced ETFs Are Perfect for Beginners
- One purchase = complete portfolio
- Automatic rebalancing included
- No decisions about asset allocation
- Extremely low costs (typically 0.20-0.25%)
- Professional-grade diversification
💡 Note: Many financial advisors charge 1% or more to build portfolios that are essentially the same as a balanced ETF. Why pay more for the same thing?
Popular Balanced ETFs in Canada
Conservative Options (40% Stocks / 60% Bonds)
- VCNS (Vanguard Conservative) — MER: 0.24%
- XCNS (iShares Core Conservative) — MER: 0.20%
Balanced Options (60% Stocks / 40% Bonds)
- VBAL (Vanguard Balanced) — MER: 0.24%
- XBAL (iShares Core Balanced) — MER: 0.20%
Growth Options (80% Stocks / 20% Bonds)
- VGRO (Vanguard Growth) — MER: 0.24%
- XGRO (iShares Core Growth) — MER: 0.20%
Choosing the Right One
Your choice depends on your risk tolerance and time horizon:
- Near retirement or conservative: VCNS/XCNS (60% bonds)
- Moderate risk tolerance: VBAL/XBAL (40% bonds)
- Longer time horizon or higher risk tolerance: VGRO/XGRO (20% bonds)
For most Canadians in their 50s and 60s, VBAL or XCNS represents a sensible starting point.
What's Inside
Despite the simplicity, these ETFs are remarkably comprehensive. VBAL, for example, holds:
- Canadian stocks
- US stocks
- International developed market stocks
- Emerging market stocks
- Canadian bonds
- US bonds
- International bonds
That's global diversification in a single purchase.
Getting Started
Open an account with a discount brokerage, buy your chosen balanced ETF, and contribute regularly. That's the entire strategy. It's not exciting, but it works.
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About Maple Wealth Guide
Maple Wealth Guide is an independent Canadian financial education website. Our team of educational writers researches and explains investment concepts, retirement-related topics, and personal finance information for Canadians aged 50 and over. We are not licensed financial advisors and do not provide personalized recommendations. All content is for educational purposes only.