This ETF Is Up 16% and Could Be the Best Investment Around

Get access to the global market with the click of a button. This ETF is one of the best ways to gain exposure to the entire earth.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 19, 2024 4:20 pm EDT

| More on: XEQT

If you’re wanting to invest in equities, there are a number of ways that you can do this. Of course, you can try and build a diversified portfolio of stocks, but that would mean buying up dozens in the hopes of creating a diversified portfolio.

That’s why exchange-traded funds (ETF) and index funds can be a far-better option. They provide you with a huge portfolio with the click of a button. And at far less cost, since you’re paying a low management fee rather than commissions.

Of them all, a company such as the iShares Core Equity ETF Portfolio (TSX:XEQT) is one of the best options around. The ETF is up 16% in the last year alone as of writing. And more growth looks likely. Let’s look at why.

An asset-allocation ETF

First let’s look at what this ETF falls under. It’s considered an all-in-one ETF, comprising several index ETFs under one name. This way, it provides investors with a complete portfolio in just one single ETF, with fixed income and equity investments, as well as global exposure.

The asset allocation ETF is a great way to get into investing without needing to know quite so much about the markets. You don’t have to worry about all the individual stocks you’re choosing, or even the bonds. That’s because this ETF does the heavy lifting for you. Plus, again, it’s cost effective! With a low management fee as well.

The details

The XEQT ETF is an asset allocation ETF, and one of the world’s largest. The fund holds almost all of its investments in stocks, with a small amount of cash on hand at any given time. The fund is also one of the most aggressive ETFs out there. It holds a long-term strategic equity allocation, designed for investors wanting long-term capital growth, mainly through stocks.

As mentioned, the all-in-one ETF holds other ETFs. In this case, the current holdings include the iShares Core S&P Total US Stock Mkt ETF (NYSEMKT:ITOT), iShares Core MSCI EAFE IMI ETF (TSX:XEF), iShares Core S&P/TSX Capped Composite ETF (TSX:XIC), and iShares Core MSCI Emerging Markets IMI ETF (TSX:XEC).

As you can see, this provides an incredibly diverse range of stocks under one ETF. You’ll get access to the total United States market, the TSX market, and the international exposure to developed countries, as well as emerging markets.

Bottom line

All in all, the XEQT ETF is a great way to make a low-cost investment for instant global diversification. You’ll have a team of professionals providing you with a highly liquid option that trades in real time. It’s automatically rebalanced, and you can invest at any time.

Overall, it’s a great way to gain exposure to the markets as a base for any portfolio. From there, you can do your own research and find the stocks that match your own long-term goals. All while knowing you’ll at least see some strong growth as the markets around the world continue to trend upwards.