Investing in Exchange-Traded Funds (ETFs) is one of the easiest ways to gain diversification with reasonable returns. Investors could get confused about the prospects of investing in equity or debt. Investing in balanced funds, which include both equity and fixed-income securities, could solve the purpose. TD One-Click Moderate ETF Portfolio Trust Units (TSE:TBAL) and BMO Monthly Incm Un (TSE:ZMI) are two such funds that investors can consider. Let’s look at the two ETFs in detail.
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TD One-Click Moderate ETF Portfolio Trust Units (TSE:TBAL)
The TBAL ETF seeks to generate long-term capital growth along with consistent income. The ETF invests in units of other exchange-traded funds, with greater emphasis on ETFs with capital growth potential.
The TBAL ETF was founded in August 2020 and has an expense ratio of 0.17%. As of date, TBAL has an AUM (assets under management) of C$78.19 million. Year-to-date, TBAL ETF has returned 16.8% to investors.
BMO Monthly Incm Un (TSE:ZMI)
The BMO Monthly Income ETF seeks to deliver the performance of an underlying basket of high-yielding BMO ETFs, including both equity and debt-based ETFs. The ZMI ETF was founded in January 2011.
The ZMI ETF has an expense ratio of 0.20% and carries a current annualized distribution yield of 4.77%. As of date, ZMI has an AUM of C$138.64 million. Year-to-date, ZMI has returned 14.4% to investors.
Concluding Thoughts
Investing in balanced ETFs can prove beneficial to low-risk investors, offering the benefits of both equity and debt investments. TBAL and ZMI are two such balanced ETFs that can be considered for investing after thorough research.
