2 Best Balanced ETFs in Canada (June 2026)
The best balanced ETFs in Canada include VBAL.TO (~0.24% MER), XBAL.TO (~0.20%), and ZBAL.TO (~0.20%). These all-in-one ETFs combine stocks and bonds in a diversified portfolio, offering moderate risk and steady returns, making them ideal for investors seeking a simple, long-term investment solution.
Balanced ETFs in Canada are designed to provide a mix of growth and stability by combining equities and bonds in a single portfolio. These all-in-one ETFs typically maintain a fixed allocation, often around 60% equities and 40% fixed income.
ETFs like VBAL.TO and XBAL.TO offer global diversification with automatic rebalancing, making them a popular choice for long-term investors who want a hands-off portfolio.
In this guide, we break down the best balanced ETFs in Canada, comparing asset allocation, fees, and risk to help you choose the right ETF for your goals.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top VBAL.TO Vanguard Balanced Portfolio | — | $5.4B | 2.13% | +7.55% | +19.68% |
XBAL.TO iShares Core Balanced ETF Portfolio | — | $3.2B | 2.17% | +7.35% | +19.28% |
What Is an ETF?
A balanced ETF in Canada is an all-in-one portfolio ETF that combines stocks and bonds to provide both growth and income. These ETFs are designed to maintain a moderate risk profile through a fixed asset allocation.
For example, VBAL.TO (~0.24% MER) provides a globally diversified 60/40 portfolio, while XBAL.TO (~0.20%) offers a similar allocation with slightly lower fees. ZBAL.TO (~0.20%) is another comparable option, while XGRO.TO (~0.20%) provides a more growth-oriented allocation with higher equity exposure.
Balanced ETFs are commonly used in TFSAs, RRSPs, and long-term portfolios. They are ideal for investors seeking a simple, diversified solution with moderate risk and steady returns.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard Balanced Portfolio
$39.74
+7.55% YTD
NA
Returns
YTD
+7.55%
1Y
+19.68%
3Y
+14.93%
5Y
+8.48%
iShares Core Balanced ETF Portfolio
$35.93
+7.35% YTD
NA
Returns
YTD
+7.35%
1Y
+19.28%
3Y
+15.07%
5Y
+8.69%
Pros & Cons
Pros
- Diversified mix of equities and bonds in one ETF
- Automatic rebalancing keeps allocation consistent
- Simple, all-in-one solution for long-term investors
- Moderate risk with both growth and income potential
Cons
- Less customization compared to building your own portfolio
- May underperform pure equity ETFs during strong bull markets
- Fixed allocation may not match all investor needs
- MER is slightly higher than holding individual ETFs
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best balanced ETF in Canada?
VBAL.TO and XBAL.TO are among the most popular balanced ETFs in Canada, offering diversified 60/40 portfolios with low fees and automatic rebalancing.
What allocation do balanced ETFs use?
Most balanced ETFs use a roughly 60% equity and 40% bond allocation, providing a mix of growth and income while reducing overall portfolio volatility.
Are balanced ETFs good for beginners?
Yes, balanced ETFs are ideal for beginners because they provide instant diversification and require minimal maintenance, making them a simple long-term investment solution.