<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=346325690736295&amp;ev=PageView&amp;noscript=1">
ETFs

5 Benefits of One-Ticket Investments

Evermore Retirement ETFs provide peace of mind because they're a one-ticket, goal-based, low-fee retirement solution. This article takes a closer look at the importance and impact of one-ticket investing.

The Evermore Team

The Evermore Team

We all deserve to feel confident about our finances. Evermore is here to make sensible investing accessible to everybody.

Introduction

A one-ticket investment, sometimes referred to as an “all-in-one” investment, is a single product that is built to meet all the requirements you need to achieve a specific financial objective or goal. For example, need to invest for retirement? There's a one-ticket solution for that with Evermore Retirement ETFs.

One-ticket ETFs have been growing at a rapid pace as investors look to lower their investment costs and relieve the mental burdens associated with sensible and effective investing. According to Bloomberg, as of April 30, 2022, Mixed Asset ETFs held approximately $20 billion CAD in assets under management (AUM) across 51 different ETFs. That is up almost 550% from only three years prior when there was only $3 billion CAD in AUM across 18 ETFs.  Meanwhile, according to the Investment Funds Institute of Canada (IFIC) Canadians hold almost $1 trillion in balanced mutual funds as of April 30th, 2022. Canadians are very familiar with one-ticket investments according to their portfolio holdings, but we still have a long way to go to transition away from high-fee funds.

As more and more investors become aware of the high costs associated with holding high-fee mutual funds (check out this blog post for more info), Canadians are looking to low-fee, one-ticket ETFs to help them meet their needs.

We have created a helpful video to outline the five key benefits of one-ticket (all-in-one) investments. If you would prefer to read about the five benefits, the article continues below the video.

 

Here are the five benefits of one-ticket investments:

 

Benefit #1 - Asset allocation

Asset allocation, the portions of your portfolio in a given asset class, like stocks, has been shown to be a major determining factor in investment success. However, for the average investor, managing asset allocation in your portfolio can become a complex and sometimes costly exercise.

One-ticket investment aim to solve this problem by creating solutions where the asset allocation is handled within the fund itself.

Most one-ticket solutions provide balanced exposure to stocks and bonds. Many offer a fixed asset allocation, for example, 80% stocks and 20% bonds. These funds are usually referred to as either asset allocation funds or balanced funds.

Target date funds like the Evermore Retirement ETFs provide asset allocation that changes over years and decades in a manner specifically designed for retirement investing.

At Evermore we recognize that your asset allocation should be tied to your goal. Most of us have goals for our money beyond just having it. Check out this article about goal-based investing to learn more about why your asset allocation should change as you approach retirement.

 

Benefit #2 – Diversification

Diversification is another major factor in investment success. By spreading your investments across several companies, you reduce your total portfolio risk.

As the old saying goes, don’t put all your eggs in one basket.

On the surface, buying a “one-ticket” investment might not sound like you're diversifying but one ticket solutions can offer access to thousands of stocks and bonds from dozens of countries around the world. In fact, there are very few other products that offer more diversification than this.

For example, the Evermore Retirement ETFs provide diversification across more than 8,000 stocks and 17,000 bonds covering over 75 countries.

Diversification was historically one of the big selling points for mutual funds, but their high fees eat away at benefits. Diversification with a low-fee is a power combination.

 

Benefit #3 - Fewer commissions

There are more and more direct investing platforms that are dropping commissions on ETF trading, and fee-based advisors don’t charge on transactions.

But if you have an investing account that does charge trading commissions you'll save on costs if you only have one thing to buy rather than half a dozen or more in a well-diversified and prudently structured portfolio.

When thinking about your total investment horizon of years and decades, these savings can add up to hundreds even thousands of dollars.

For younger Canadians that are investing smaller amounts on a frequent basis, moving to a commission free platform may be more beneficial. Fortunately, one-ticket solutions like the Evermore Retirement ETFs are available across all direct investing platforms in Canada.

 

Benefit #4 - Rebalancing

Selecting an appropriate asset allocation for your goals is challenging enough. Not only do you need to adjust your asset allocation over time depending on your goals, the markets are all moving at the same time.  Your asset allocation should continue to reflect your investment objectives and must be rebalanced on an on-going basis as markets move. This means that to stay on track, you do not want to deviate too much from an appropriate asset allocation.

Rebalancing your own portfolio can be stressful, time consuming, confusing, even expensive. One-ticket investments are rebalanced to ensure they stay on target, they do the rebalancing for you.

Also, because you're not rebalancing your own portfolio, you can save even more on commission fees.

 

Benefit #5 - Easy to choose

With one-ticket investments, figuring out how to invest is now easier than ever.

If you're comfortable with a fixed asset allocation to achieve a given investment goal, you can choose the asset mix that makes most sense for that goal. Vanguard, Blackrock, and BMO all have low-fee asset allocation ETFs with fixed allocations.

The goal of retirement however is special. To implement a one-ticket investment strategy for retirement it can be as easy as choosing the Evermore Retirement ETF whose target date is closest to when you expect to retire, and when you're in retirement having only one item in your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) makes it easier to know what to sell.

You can visit this page to learn more about the Evermore Retirement ETF that might be right for you.

 

Conclusion

There you have it. Five excellent benefits of the all-in-one, one-ticket investment options available to Canadians.

Successful long-term investing has always been about sticking with the fundamentals.  One-ticket ETFs take all the complexity of portfolio construction and put it into a single investment at fees previously reserved for only wealthy investors. Don’t be fooled by gimmicks or strategies that try and sell you on the latest investment fad. Low-fee, one-ticket investments like the Evermore Retirement ETFs make it easy for Canadians to stick to the fundamentals when investing for retirement.

Elements Image

Subscribe to our newsletter

Receive our latest blog posts and other useful resources about investing and retirement planning.

Latest Articles

TFSA 101

TFSA 101

Learn the basics about Tax-Free Savings Accounts (TFSAs) and how to use a TFSA to help achieve your short and long-term financial goals.

RRSP 101

RRSP 101

Learn the basics about Registered Retirement Savings Plans (RRSPs) and how RRSP accounts can help you suitably invest for retirement.

Getting Started? Invest Early, Invest Often

Getting Started? Invest Early, Invest Often

Are you confused or stressed out about investing? Here are the three key steps to start investing for retirement.