I’ve written before about my favourite exchange-traded funds (ETFs) for 2026 from an active perspective. In those pieces, I made the case for tilting toward Canadian real estate and global infrastructure.
That was a deliberate bet. If I were going to stray from a broad market portfolio and accept the risk of underperforming, those are the areas I’d lean into.
But if I were looking for a true set-it-and-forget-it solution, my picks would look very different. Instead of sector tilts, I’d go with an asset allocation ETF.
That’s just a fancy way of describing a single fund that owns thousands of stocks across countries, sectors, and market caps. You buy one ticker and get instant diversification.
Here are two ETFs I’m particularly fond of from Global X Canada and Fidelity Canada.
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The Global X Option: HEQT
The first is the Global X All Equity Asset Allocation ETF (TSX: HEQT).
HEQT is a fund of funds. It holds a portfolio of other Global X ETFs that track major global benchmarks. That includes the S&P 500 for U.S. exposure, the MSCI EAFE Index for developed international markets, the S&P/TSX 60 for Canadian large caps, and the MSCI Emerging Markets Index for countries like Brazil, India, and China.
That alone gives you broad global exposure. But HEQT doesn’t stop there. Global X adds a couple of tilts that can meaningfully shift performance. Depending on market leadership, those additions can either help or hurt relative to plain vanilla global equity ETFs.
There is an allocation to the NASDAQ 100, which leans toward large-cap U.S. growth and technology stocks. There is also exposure to the Russell 2000, which represents U.S. small caps. All of this comes at a competitive 0.20% management expense ratio.
One feature I personally like is the monthly distribution. It’s not a high yield at around 1.7%, but receiving cash every month can be a helpful behavioural nudge to reinvest and stay engaged with your portfolio.
The Fidelity Option: FEQT
If you want something a bit more technical, the Fidelity All-in-One Equity ETF (NEOE: FEQT) is worth a look.
Unlike HEQT, FEQT does not simply stack index ETFs together. It uses a factor investing framework. That means it deliberately targets specific characteristics that academic research suggests may outperform over long periods.
Within its U.S., international, and Canadian allocations, stocks are screened and grouped by factors such as low volatility, value, momentum, and high quality. Instead of owning stocks at market-cap weights, FEQT tilts toward companies that fit these definitions.
There is also an explicit allocation to cryptocurrency through a small position in a Fidelity spot Bitcoin ETF. That adds an additional layer of risk and potential return. For some investors, it offers exposure to crypto without having to manage wallets or separate accounts.
The trade-off is cost. FEQT charges a 0.43% expense ratio, more than double HEQT’s fee. You are paying for the factor strategy and the added complexity. For investors who believe in factor investing and want a built-in crypto sleeve, that premium may be justified.
