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ETF spotlight: Asset allocation ETFs – Optimize client portfolios with cost efficient diversification

In today's complex market environment, the journey to achieving investment goals can be challenging and unpredictable, as markets often behave irrationally and are prone to short-term volatility and uncertainties. The best way to navigate these challenges is to create and adhere to a financial plan, diversify the portfolio, and remain invested throughout the market cycles.

To help you address this, we want to highlight the powerful role that asset allocation ETFs can play to withstand challenging markets. These solutions are specifically designed to help you optimize client portfolios with cost-efficient diversification.

The surge of asset allocation ETFs in recent years (M$)

Source: Morningstar, as of February 28, 2026.
  1. Streamlined diversification
    Asset allocation ETFs offer a single-investment solution to achieve broad diversification across various asset classes, geographies, and investment styles. This helps to reduce concentration risk and can smooth out portfolio returns over the long term, providing a more stable investment experience for your clients.
  2. Cost-effective portfolio construction
    By bundling multiple asset classes into one ETF, you can significantly lower the transaction and management costs associated with building and maintaining a diversified portfolio. This cost efficiency is a powerful advantage that can lead to better net returns for your clients over time.
  3. Mackenzie asset allocation ETFs
    Mackenzie’s all-in one, low-cost, asset allocation ETFs are designed for investors with different risk profiles, which help to mitigate the impact of market volatility by delivering an appropriate investment mix with the benefit of transparent and liquid exposures.
    The Mackenzie suite of Asset Allocation ETFs offer strategic asset allocation with embedded discipline to reduce operational complexities and administrative burdens in executing an effective asset allocation plan.

Targeted Allocations

Source: Mackenzie, as of February 28, 2026.

*These are the target allocations, rebalanced quarterly and are subject to change by the portfolio management team. Please refer to prospectus for more detail.

Trailing performance:

 

YTD

1 Year

3 Years

5 Years

Since Inception

Inception Date

Mackenzie Conservative Allocation ETF (MCON)

3.34

11.10

11.39

6.14

6.29

2020-09-29

Mackenzie Balanced Allocation ETF (MBAL)

3.97

15.28

14.83

9.01

9.47

2020-09-29

Mackenzie Growth Allocation ETF (MGRW)

4.60

19.52

18.29

11.88

12.69

2020-09-29

Mackenzie All-Equity Allocation ETF (MEQT)

5.20

23.79

 

 

24.31

2023-11-20

Source: Morningstar, as of February 28, 2026.

ETF news & notes

Navigating new cost transparency requirements

CRM3 or Total Cost Reporting which mandates transparency of investment fund costs took effect on Jan 1, 2026, where firms will provide annual reports starting January 2027. Dealers’ annual reports will contain aggregate fund expenses ($), charges and fund expense ratio (FER) which is a combination of MER + TER.

Management Expense Ratio (MER) covers ongoing operational costs like management and administration, while the Trading Expense Ratio (TER) reflects the actual trading activity of the fund and can vary from year to year depending on how actively the fund is managed.

As CRM3 continues to push advisors to reassess their fee structures, many are actively looking to reduce overall FERs across their book. This increased sensitivity to FERs and cost-driven approach positions Mackenzie Asset Allocation ETFs as an efficient alternative relative to peers. With some of the lowest MERs across industry peers with leading to better efficiency for Total Cost Reporting (TCR), Mackenzie’s Asset Allocation ETFs can assist advisors and investors navigate these new changes with peace of mind.

ETF flows update

  • On a year-to-date basis, as of March 23, 2026, total ETF inflows have reached $53.9 billion. Equity ETFs lead the way with $28.9 billion, followed by fixed income ETFs at $12.1 billion, and asset allocation at $10.4 billion.
  • The total AUM for Canadian ETFs reached $747 billion.
  • The number of listed ETFs: 1,926.

Mackenzie ETF top performers

Equity ETFs

Fixed Income ETFs

Source: Mackenzie investments, data as of March 23, 2026.

FOR ADVISOR USE ONLY. No portion of this communication may be reproduced or distributed to the public as it does not comply with investor sales communication rules. Mackenzie disclaims any responsibility for any advisor sharing this with investors.

Commissions, brokerage fees, management fees, and expenses all may be associated with Exchange Traded Funds. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns, including in share or unit value and reinvestment of distributions and does not take into account sales, redemption, distribution, or optional charges or income taxes payable by any securityholder that would have reduced returns. Exchange Traded Funds are not guaranteed, their values change frequently, and past performance may not be repeated.

The content of this article (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This should not be construed as legal, tax or accounting advice.  This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique.  We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate.  There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.  We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document.  Please consult your own legal and tax advisor.

This article may contain forward-looking information which reflect our or third party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of February 28, 2026. There should be no expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events or otherwise.

Index performance does not include the impact of fees, commissions, and expenses that would be payable by investors in the investment products that seek to track an index.

The Mackenzie ETFs are not sponsored, promoted, sold or supported in any other manner by Solactive nor does Solactive offer any express or implicit guarantee or assurance either with regard to the results of using the Indices, trademarks and/or the price of an Index at any time or in any other respect. The Solactive Indices are calculated and published by Solactive. Solactive uses its best efforts to ensure that the Indices are calculated correctly. Irrespective of its obligations towards the Mackenzie ETFs, Solactive has no obligation to point out errors in the Indices to third parties including but not limited to investors and/or financial intermediaries of the Mackenzie ETFs. Neither publication of the Solactive Indices by Solactive nor the licensing of the Indices or related trade mark(s) for the purpose of use in connection with the Mackenzie ETFs constitutes a recommendation by Solactive to invest capital in said Mackenzie ETFs nor does it in any way represent an assurance or opinion of Solactive with regard to any investment in these Mackenzie ETFs.