Investing for 2026 & Beyond With Asset Allocation ETFs

Building a long-term portfolio doesn’t have to feel like assembling flat-pack furniture without instructions. Exchange traded funds (ETFs) simplify the “building blocks” phase by offering a single ETF that can hold a broad basket of securities, including other ETFs, typically with lower fees than traditional managed investment products with the added ability to trade throughout the market day.

Registered Retirement Savings Plan (RRSPs) and other registered plans are great use-cases for Asset Allocation ETFs. Contributions into RRSPs are tax-deductible and investments can grow tax-deferred until withdrawal, often in retirement when taxable income may be lower.

With the deadline of March 2, 2026 for RRSP contributions, it’s a great time of year for many Canadians to reassess their investment setup.

Global X Asset Allocation ETFs take the simplicity of ETF investing a step further. Instead of combining multiple ETFs yourself (and remembering to rebalance), asset allocation ETFs package a diversified mix, usually equities and fixed income, into a single, professionally managed solution. The goal isn’t to eliminate decision-making but to streamline it by reducing the number of choices that might derail a well-constructed long-term plan.

That’s the appeal of these products: they help remove friction around diversification and portfolio construction, while keeping investors focused on questions that matter most:

Portfolios with higher equity exposure tend to be associated with more growth potential over longer periods, while portfolios with more fixed income allocations tend to prioritize stability and smoother returns, often aligned with shorter investment horizons.

Let’s bust a myth once and for all: asset allocation ETFs aren’t just for beginners. Many experienced investors use them as the “core” of their portfolio, giving them more time to focus on tactical opportunities, maintaining a disciplined and diversified foundation for a long-term asset allocation retirement approach that is stable and secure.

Canadians can also support specific life goals through RRSP-linked government programs, such as:

Another place where asset allocation ETFs might be a great fit: inside a First Home Savings Account (FHSA), Tax-Free Savings Account (TFSA), or a trading account. No matter your reason for contributing, the practical challenge is the same: the range of choices inside an RRSP can feel overwhelming. Asset allocation ETFs are designed to simplify that moment by offering a ready-made mix.

No one gets to pick the market’s path in advance. But investors can choose a portfolio structure that makes sense across plausible scenarios, then stay invested long enough to let compounding within a product such as an RRSP do its job.

A useful way to think about portfolio design is to stress-test your preferences against three hypothetical outcomes:

HEQL seeks to provide enhanced long-term capital growth, primarily by investing, directly or indirectly, in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities.

HEQL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies” of the Fund’s prospectus) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%.

EQCL seeks to provide a combination of a high level of income and long-term capital growth, primarily by investing, directly or indirectly, in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities. To generate premiums, EQCL will be exposed to a dynamic covered call option writing program.

EQCL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies” of the Fund’s prospectus) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125%.

Sideways market conditions can be frustrating: not enough momentum to feel rewarded, but enough volatility to tempt investors into bad timing. A covered call approach can seek to earn option premium income no matter what happens to markets. Typically, this comes at the cost of giving up some upside participation.

In this framework, GRCC is positioned as a way to stay allocated to a growth-oriented portfolio while seeking to reduce volatility and potentially enhance total return during range-bound market environments.

GRCC seeks to provide a combination of a high level of income and moderate long-term capital growth, primarily by investing in exchange traded funds that provide exposure to a globally diversified portfolio of equity and fixed income securities. To mitigate downside risk and generate premiums, GRCC will be exposed to a dynamic option writing program.

For investors primarily focused on limiting portfolio drawdowns, a higher allocation to fixed income may help moderate overall volatility, typically with a corresponding reduction in growth potential. Within this context, HCON is positioned as a more defensive option.

HCON seeks to provide a combination of income and moderate long-term capital growth, primarily by investing in exchange traded funds that provide exposure to a globally diversified portfolio of fixed income and equity securities.

These scenarios aren’t about predicting markets. They’re about choosing a structure that matches an investor’s comfort with risk, then sticking with it: missing market rebounds can be costly and trying to time the market is notoriously difficult. In short: know your timeline and stay invested so your portfolio doesn’t miss out on market potential.

FOR ILLUSTRATIVE PURPOSES ONLY These charts index certain Global X Asset Allocation ETFs over a timeline of one year (split in two to 2025’s varying market conditions). The index starts at 10,000 points. These charts do not cover all potential market scenarios but do show how these indexed funds performed over a year that saw high volatility and uncertainty.

The indicated rates of return are the historical annual compounded total returns, including changes in unit value and reinvestment of all distributions, and do not take into account sales, redemption, distribution or optional charges, or income taxes payable by any securityholder that would have reduced returns. Additionally, index returns do not take into account management, operating, or trading expenses. The rates of return above are not indicative of future returns. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. The indices are not directly investible. Only the returns for periods of one year or greater are annualized returns.

Investors can consider more investment styles using our Fund Finder tool on our Asset Allocation Suite homepage, designed for smart investing, simplified.

Not sure where to start? Watch this video:

Asset allocation ETFs are a simple way to turn “I should really invest” into an actionable plan. They can help Canadians stay diversified, stay aligned, and stay invested, whether they’re contributing to an RRSP or building a longer-term portfolio with fewer moving parts.

DISCLAIMERS

Commissions, management fees, and expenses all may be associated with an investment in products (the “Global X Funds”) managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently and past performance may not be repeated.  Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing.

Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase investment products (the “Global X Funds”) managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. 

Effective August 25, 2023, the investment objectives, investment strategies, management fees, currency hedging and distribution policies of the Global X Conservative Asset Allocation ETF (formerly Horizons Conservative Asset Allocation ETF) (“HCON”), the Global X Balanced Asset Allocation ETF (formerly Horizons Balanced Asset Allocation ETF) (“HBAL”), and the Global X All‐Equity Asset Allocation ETF (“HEQT”) (formerly Horizons All‐Equity Asset Allocation ETF) were changed following receipt of the required unitholder and regulatory approvals. For more information, please refer to the disclosure documents of the ETFs at www.GlobalX.ca.

All comments, opinions and views expressed are generally based on information available as of the date of publication and should not be considered as advice to purchase or to sell mentioned securities. Before making any investment decision, please consult your investment advisor or advisors. 

For more information on Global X Investments Canada Inc. and its suite of ETFs, visit www.GlobalX.ca

Global X Investments Canada Inc. (“Global X”) is a wholly owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae Asset”), the Korea-based asset management entity of Mirae Asset Financial Group.  Global X is a corporation existing under the laws of Canada and is the manager, investment manager and trustee of the Global X Funds. 

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Published February 23, 2026.