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Five ways to worry less about your investments with an all-in-one ETF


Generally, these approaches are not beneficial for your long-term financial well-being. Emotion is the enemy of investing, goes the adage. Impulsive investment decisions can be detrimental to the long-term performance of your portfolio.

Taking emotions out of investment decisions and incorporating a professional, process-driven approach to managing your money is a good way to avoid investing missteps and misadventures.

One way to do that is through exchange-traded funds, or ETFs for short. An ETF is a basket of individual stocks and bonds, similar to mutual funds, that may be purchased for one price through a listing exchange. Investors can buy shares of ETFs, known as units, and gain exposure to the performance of securities within the ETF. ETF companies deduct a management fee as part of the ETF’s management expense ratio (MER).

Unlike mutual funds, though, ETFs trade on exchanges like equities, and their unit prices change throughout the day. ETFs, like mutual funds, are constructed and managed by investment firms. In essence, ETFs are a way for investors to shift the burden and anxiety of making investing decisions to professionals who have the experience and resources to navigate the complex investing landscape and can seek to capitalize on its opportunities.

Canadian investors have ploughed a record $48 billion into ETFs so far this year, surpassing 2020’s inflows, according to the Canadian ETF Association. With the soaring popularity of ETFs, issuers are using creative ways to tap a wider pool of securities, across sectors, factors and geographies. One investment product that you can consider is a Fidelity All-In-One ETF, such as Fidelity All-in-One Balanced ETF (FBAL) or Fidelity All-in-One Growth ETF (FGRO).

All-in-one ETFs are generally pools of lower-cost ETFs with different investment objectives and strategies. These ETFs provide broad market exposure in a convenient and cost-efficient way by providing exposure to a globally diversified selection of stocks and bonds.

Here are five key benefits of all-in-one ETFs and how they can help simplify your investing:

1. The investments have been selected for you.

The average retail investor has neither the time nor the know-how to analyze individual securities, understand business fundamentals, evaluate balance sheets, follow market trends and track changes to economic indicators. Fortunately, with all-in-one ETFs, investors can delegate these tasks to professionals. Fidelity’s FBAL and FGRO ETFs, for example, are one-ticket solutions diversified across regions, market caps and investment factors, with the benefits of professional management.



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