5 Lazy Portfolios You Can Build With Just One ETF

Investing doesn’t have to be complicated. In fact, the simpler your portfolio, the better it often performs.

This is the philosophy behind “lazy portfolios”—investment strategies designed for maximum returns with minimum effort. And in Canada, the ultimate lazy portfolio is astonishingly simple: buy one ETF and hold it forever.

In this guide, I’ll break down 5 lazy portfolios you can build with just one ETF, ranked by risk tolerance. Each portfolio is complete, globally diversified, and requires zero rebalancing or maintenance.

The best part? Research consistently shows that simple, low-cost portfolios like these outperform the majority of actively managed funds and complicated strategies.

Let’s dive in.

What Makes a “Lazy Portfolio”?

A lazy portfolio is designed around these principles:

✅ Maximum simplicity (ideally one fund) ✅ Low cost (ultra-low management fees) ✅ Broad diversification (global exposure) ✅ Automatic rebalancing (no manual work) ✅ Passive strategy (buy and hold forever)

The Goal: Achieve market-matching returns with the least possible effort, stress, and cost.

The Reality: Lazy portfolios consistently outperform 80%+ of active investors who try to pick stocks, time the market, or trade frequently.

Portfolio #1: The “Set It and Forget It” Portfolio

100% XEQT

Expected Returns:

Historically, global stock markets have returned ~8-10% annually over long periods. XEQT tracks global markets minus the tiny 0.20% fee.

$10,000 invested in XEQT for 30 years at 9% annually:

• Portfolio value: $132,676
• Contributions: $10,000
• Gains: $122,676

Portfolio #2: The “Sleep Well at Night” Portfolio

100% XBAL

How It Performs in Crashes:

During a 30% market crash:

• XEQT (100% stocks): -30% drop
• XBAL (60/40): -18% drop (40% bonds cushion the fall)

Expected Returns:

Historically, 60/40 portfolios have returned ~5-6% annually.

Portfolio #3: The “Growth Seeker” Portfolio

100% XGRO

Expected Returns:

Historically, 80/20 portfolios have returned ~6-8% annually.

Portfolio #4: The “Income Builder” Portfolio

100% XEI

Expected Returns:

Dividend-focused portfolios typically return ~4-6% annually (dividends + modest growth).

Portfolio #5: The “Home Country Comfort” Portfolio

100% XIC

Bottom Line:

XIC works as a supplement to global portfolios but is not recommended as a standalone one-fund solution unless you’re comfortable missing 97% of the global market.

Side-by-Side Comparison

Which Lazy Portfolio Should You Choose?

Choose XEQT if:

• ✅ You have 15+ years until you need the money
• ✅ You want maximum long-term growth
• ✅ You can handle market volatility
• ✅ You want true global diversification

Choose XGRO if:

• ✅ You have 10-15 years until retirement
• ✅ You want growth with some stability
• ✅ You have moderate risk tolerance
• ✅ You’re approaching retirement but still working

Choose XBAL if:

• ✅ You’re within 5-10 years of retirement
• ✅ You prioritize capital preservation
• ✅ You have low risk tolerance
• ✅ You want lower volatility

Choose XEI if:

• ✅ You’re retired or need income
• ✅ You want steady dividend cash flow
• ✅ You prefer Canadian companies
• ✅ You prioritize stability over growth

Choose XIC if:

• ✅ You strongly prefer Canadian-only exposure
• ✅ You want the absolute lowest fee (0.06%)
• ✅ You’re comfortable with home country concentration
• ✅ You don’t need global diversification

Why Lazy Portfolios Beat Active Investing

The Data:

• SPIVA Canada Scorecard (2023): Over 15 years, 90%+ of Canadian equity funds underperformed the S&P/TSX Composite
• Vanguard Research: Low-cost index funds beat actively managed funds 80%+ of the time over 10+ years
• Morningstar Studies: Fees are the #1 predictor of fund performance (lower fees = better returns)

Why Lazy Portfolios Win:

1. Lower fees (0.20% vs. 2%+ for mutual funds)
2. No emotional trading (buy and hold removes human error)
3. Market-matching returns (you get the market average, which beats most investors)
4. Time savings (no research, rebalancing, or monitoring needed)
5. Tax efficiency (fewer trades = fewer taxable events)

Example:

$100,000 invested for 30 years:

You lose over half a million dollars to fees alone.

How to Implement Your Lazy Portfolio

Step 1: Choose Your ETF

Pick one of the five portfolios based on your risk tolerance and timeline.

Step 2: Open an Account

• Wealthsimple Trade: Best for beginners (commission-free, fractional shares)
• Questrade: Good for advanced investors
• Your bank: Works but often has higher fees

Step 3: Buy Your ETF

• Search for your chosen ticker (XEQT, XGRO, etc.)
• Buy as much as you can afford
• Set up automatic contributions if possible

Step 4: Hold Forever

• Do NOT sell during market downturns
• Do NOT try to time the market
• Do NOT add other investments (defeats the purpose)
• Do contribute regularly (dollar-cost averaging)

Step 5: Ignore the Noise

• Don’t check your portfolio daily
• Ignore market predictions and “hot stock” tips
• Trust the process and let compound growth work

Our Top Pick: XEQT

For most Canadian investors under 50, XEQT is the ultimate lazy portfolio.

Here’s why:

✅ Simplest possible strategy (one fund, zero rebalancing) ✅ Maximum growth potential (100% global equity) ✅ True diversification (9,000+ companies worldwide) ✅ Ultra-low cost (0.20% MER) ✅ Tax-efficient in all account types ✅ Commission-free on Wealthsimple

The beauty of XEQT:

You can build a globally diversified, professionally managed portfolio with a single $100 purchase. No need for multiple funds, complex allocations, or constant monitoring.

Just buy XEQT, set up automatic contributions, and let decades of compound growth do the work.

Common Questions About Lazy Portfolios

Should I hold multiple one-fund portfolios?

No. The entire point is simplicity. If you hold XEQT, don’t also buy XGRO or XIC—you’re creating overlap and defeating the purpose.

What about rebalancing?

You never need to rebalance. All five ETFs (XEQT, XGRO, XBAL, XEI, XIC) automatically rebalance internally. That’s the magic of all-in-one ETFs.

Can I switch from XEQT to XBAL as I age?

Yes. As you approach retirement, you can sell XEQT and buy XBAL (or XGRO) to reduce volatility. But do this intentionally, not reactively during a crash.

Is XEQT too risky?

Only if your timeline is too short. XEQT is perfect for 15+ year horizons. If you’re retiring in 5 years, choose XBAL instead.

What if I want to add bonds to XEQT?

Don’t. If you want bonds, just buy XGRO (80/20) or XBAL (60/40) instead. Adding bonds manually defeats the simplicity of a one-fund portfolio.

The Bottom Line

The best lazy portfolio for most Canadians is 100% XEQT.

It’s the simplest, lowest-cost, most globally diversified way to build wealth. You get:

• Complete global stock market exposure (9,000+ companies)
• Automatic rebalancing
• Ultra-low 0.20% fee
• Zero maintenance required

Don’t overthink it. Pick one ETF, buy it consistently, and hold it forever. Complexity doesn’t improve returns—it just adds stress and costs.

The beauty of lazy portfolios is that they work precisely because they’re lazy. You avoid the emotional mistakes, high fees, and time waste that destroy most investors’ returns.

Start today. Buy one fund. Hold forever.

Disclosure: This post contains referral links. I may receive compensation if you sign up through these links, but this doesn’t affect my honest assessment. Lazy portfolios using all-in-one ETFs are genuinely the best strategy for most Canadian investors seeking simple, effective wealth building.