Why run a portfolio when you can buy XEQT?

My personal portfolio is composed of a number of individual accounts holding a diverse mix of stocks and ETFs. I earn a good income from the dividends and the capital gains keep the overall value of my portfolio increasing. Yet, I cannot help but wonder if I could do as well or better by simply owning the iShares ETF XEQT.

XEQT is an exchange-traded fund (ETF) offering investors a complete portfolio in just one ETF. It is a complete portfolio assuming you don't want to hold any bonds. I don't. XEQT is an all-equity ETF. No bonds.

XEQT holds four iShares ETFs: 

• iShares Core S&P Total U.S. Stock Market ETF for U.S. equity exposure (44.6% weight)
• iShares Core MSCI EAFE IMI Index ETF for international developed markets equity (25.7%)
• iShares Core S&P/TSX Capped Composite Index ETF for Canadian equity (24.9%) 
• iShares Core MSCI Emerging Markets IMI ETF for emerging markets equity (4.8%)

This one ETF holding four ETFs provides a diversified portfolio of around 10,000 stocks representing the U.S., the international developed markets, the Canada market, and lastly the emerging markets. XEQT gives one exposure to the global equity market for a management fee of only 0.20% when last I checked.

XEQT only yields about 1.89% in dividends but it offers very good long-term capital growth. If I had all my money in XEQT I would have to sell some units annually and add that cash to my dividend income to cover my living expenses.

The simplicity and global diversity of XEQT makes it an appealing answer to portfolio management. I have decided to run a test. I have created a test portfolio composed of only XEQT. The test portfolio opened with a value equal to my portfolio at the close yesterday.

Today, as I write this XEQT is ahead by $518.07. This means very little but stay tuned. Getting out of the business of buying and selling stocks maybe possible. 😊 If you prefer Vanguard to iShares, Vanguard offers VEQT. Your choice. And if you insist on having some bonds in your portfolio mix, both iShares and Vanguard offer ETFs with traditionally balanced constructions as well.