I’m feeling pretty lazy these days, and maybe you are, too. Or maybe your life’s just getting busier. It could be a new job, going back to school, a recent home purchase, or a promotion at work.
One side effect of having more on your plate is often less time to research investments. And that’s okay. Here’s one exchange-traded fund (ETF) I’d feel comfortable dropping $4,100 into today to stay diversified, hands-off, and stress-free.
Why I like this ETF
BMO All-Equity ETF (TSX:ZEQT) is about as pain-free as investing gets. It’s built for people who want stock market exposure, global diversification, and minimal hassle—all with a single purchase.
This ETF charges a 0.20% management expense ratio (MER), which is $20 annually per $10,000 invested. That’s a fraction of what a traditional money manager would’ve cost in the past.
What you get in return is a diversified portfolio that holds stocks from across the globe:
- Roughly 45% in large U.S. companies.
- Around 26% in Canadian stocks.
- About 17% in developed international markets like Europe and Japan.
- Nearly 8% in emerging market countries like China and India.
- Smaller allocations to mid-cap and small-cap U.S. companies.
ZEQT rebalances its holdings periodically, which means it automatically buys low and sells high behind the scenes. There is no need to time the market or shift your allocation manually.
Basically, this ETF gives you what a full-time investment advisor would’ve delivered in the old days, only instead of paying 2% in fees, you’re paying one-tenth of that.
Is it really that easy?
Yes, it really is! When you invest in a broad-market ETF like ZEQT, you’re gaining exposure to what’s known as the equity risk premium. This is the extra return investors expect for taking on the risk of owning stocks instead of safer assets like bonds or cash.
You could technically get this exposure by buying a single stock, but that introduces what’s called idiosyncratic risk. This is company-specific risk that isn’t rewarded with higher returns — think poor management decisions, lawsuits, product recalls, or accounting scandals. These risks can tank a stock even if the broader market is doing fine.
With ZEQT, you avoid that. The ETF holds thousands of companies across different countries and sectors, which smooths out those one-off risks. You’re not betting on any single business; you’re investing in the global stock market. And historically, that’s been one of the most reliable ways to build wealth over time.
People will routinely drop $4,100 on a fancy getaway or a piece of jewelry but won’t invest in the global stock market and own businesses from across the world—short-sighted, if you ask me.
