Asset Allocation ETFs: BMO vs iShares (ZCON, ZBAL, ZGRO) 

@Doug Mehus - Thanks, Doug! I'm glad to hear you've been enjoying the videos :) BMO's asset allocation ETFs were certainly outshined by the Vanguard and iShares products, but there weren't many good reasons for this.

@golftor - I have plenty of videos lined up for 2021, so my subscribers should have enough to keep them busy :) Thanks for stopping by the channel!

@SirMango - Thanks for watching! I was curious about the BMO AA ETFs as well, and after researching the funds in more detail, I'm comfortable adding them to my model portfolios in 2021. Enjoy your celebrations tonight! :)

@@JustinBenderCPM I'm looking forward to seeing your 2021 model portfolios!

@Luxury Life - We're so glad you've been enjoying the channel (and learning a lot from the videos)! There's certainly many more videos in the works, so stay tuned :)

@kenloq - Happy new year!

@Ray Making - Happy new year! I plan to review some of the Horizon's tax-efficient ETFs at some point in the future. As a quick comment, I prefer the plain-vanilla index ETFs from iShares, BMO and Vanguard over ETFs that have counterparty risk (like those from Horizons).

@@JustinBenderCPM Thanks for response. Eagerly looking forward to your new post with special interest in tax efficient non-registered balanced portfolios in Canada.

@Ilya Chidyakin - Thanks! :)

@tonydibratto5333 - Great question! The iShares Core ETF Portfolios hold the unhedged U.S.-listed bond ETFs (i.e., USIG and GOVT), but then hedge away their USD exposure behind the scenes. So there isn't technically a CAD-hedged version of USIG or GOVT. ITOT is a U.S.-based ETF, and iShares does not hedge away its USD exposure within the iShares Core ETF Portfolios.

@ChrisO - Thanks for watching (and subscribing)! :)

@Anwaar S - Low trading volume isn't a concern for diversified ETFs (like ZEQT) - just stick with limit orders when buying or selling. I would also suggest reading this article: Understanding ETF liquidity and trading: www.vanguard.ca/documents/understanding-etf-liquidity-and-trading-en.pdf

@David Bateson - I don't think I've ever had non-ETF related questions! 1) I find time daily between 5 am to 7:30 am, 7 pm to 9 pm, and weekends/”vacations” 😉 2) There are many individuals involved in the video production from start to finish: - Research: Justin Bender - Script writing: Justin Bender - Script editing: Wendy Cook (www.wendyjcook.com/plain-speak-blog/) or Dan Bortolotti (canadiancouchpotato.com/) - Video recording: Justin Bender (I control the video with my iPhone, so Dustin is not required 😉) - Video and audio editing: Justin Bender - Animation concept planning: Justin Bender - Video animator: Ryan Conlin (5side.tv/author/5side/) - RU-vid thumbnail design: Abejane Alvarez (www.pwlcapital.com/profile/abejane-lou-alvarez/) - Project manager: Angelica Montagano (www.pwlcapital.com/profile/angelica-montagano/)

@@JustinBenderCPM That's quite the team effort, and thanks for crediting all those involved. I particularly like the graphics and how that helps to explain the story your telling. Looks like your on your way to 10k subscribers, congrats.

@J J - I'll likely create a video at some point about these products.

@Jeff Silver - Happy new year, Jeff! XIC and ZCN are the only two ETFs within the iShares Core ETF Portfolios, Vanguard Asset Allocation ETFs and BMO Asset Allocation ETFs that follow an index that caps specific company weights. XIC and ZCN both follow the S&P/TSX Capped Composite Index, which caps all companies at a 10% maximum weight. The dividend yields on all comparable ETFs are similar, so a comparison adds little to the decision-making process.

@@JustinBenderCPM Great thank you so much Justin! I guess if capped is not included in the name then I can assume a fund is not capped.Thanks again Justin!

@Robert Poitras - The ETF companies don't double-dip on the underlying fund MERs (the MER quoted for the asset allocation ETFs is the total MER).

@bedfil - I don't consider a low trading volume as a reason to avoid the BMO AA ETFs (as long as you are using limit orders to place your trades). Remember, the liquidity of an ETF depends on the liquidity of the underlying holdings (which are arguably even more liquid than the Vanguard or iShares AA ETFs, which include less liquid foreign small cap stocks).

@Eri Gjoka - They're not expected to make significant changes to their strategic asset mix either (all three AA ETF providers are relatively passive in this regard).

@Wei x - I don't have any plans in the near future to discuss ZPR, but I'll definitely put it on the list.

@Andre L - They are just another actively managed ETF solution that index investors can safely ignore.

@G B - You need to first determine what market exposure you want, and then determine appropriate ETFs for that exposure. Just buying random "tax-efficient" ETFs is not a solid investment process. What are you trying to accomplish in terms of the overall portfolio?