On our journey to analyze some of the most popular exchange-traded funds (ETFs) in the investment world, we talked about BMO ETFs and Vanguard ETFs so far. However, this effort will not be complete without BlackRock iShares ETFs, which is the leading ETF manager in the world. To add some context to this claim, BlackRock boasts 389 different ETFs in the US market and 157 ETFs in Canada. These are more than its rival BMO and Vanguard ETF counts put together. In this article, we will be exploring the infamous iShares Core Balanced ETF, ticker symbol; XBAL, listed in the Toronto Stock Exchange (TSX).

With over $2 trillion in assets under management and over 900 investment products, BlackRock is one of the leading players in the fund management game. This gives them the luxury of dropping their management fees and further attracting investors. In 2019, BlackRock entered into a strategic alliance with Canada’s RBC Global Asset Management to introduce the iShares brand for ETFs.

iShares Core Balanced ETF is a popular ETF in the iShares portfolio by BlackRock. This fund seeks to provide long-term capital growth and income by investing in a very diversified portfolio of equities across several regions. It does so by investing in a few other ETFs owned and managed by BlackRock, thus keeping the management fees at a bare minimum as well.

According to BlackRock, the objective of XBAL is a “simple and efficient way to gain exposure to a portfolio of ETFs that is broadly diversified by asset class and across regions, in one convenient package.”

Quick Facts	XBAL.TO
Fund inception date	Jun 21, 2007
Net Assets (Jan 7, 2022)	$942 million
Exchange	Toronto Stock Exchange
Annualized distributions yield	1.96%
Distribution frequency	Quarterly
Management expense ratio	0.20%
Account eligibility	TSFA/RRSP/RESP/RRIF/DPSP

XBAL ETF is almost a 1 billion Canadian dollar fund as of now, which shows investor confidence in the fund. The annual distribution yield of 1.96% is nothing to brag about. However, the capital appreciation the fund has been able to provide more than offsets the small dividend yield.

BlackRock ranks XBAL ETF as a low-medium level investment likely due to its high level of diversity across regions, industries, growth potentials, and more.

iShares Core Balanced ETF (XBAL) Holdings

XBAL ETF invests in a handful of other ETFs owned and managed by BlackRock. Eight other ETFs to be precise and a little cash for liquidity purposes. However, through these eight ETFs, XBAL holds over 20,000 individual investments. This is an unprecedented level of diversification.

Below are the holdings of XBAL and their respective weightage in the fund as of January 6, 2022.

Ticker	Holding Name	Weightage
ITOT	iShares Core S&P Total US Stock Market ETF	29.15%
XBB	iShares Core Canadian Universe Bond Index ETF	23.37%
XIC	iShares Core S&P/TSX Capped Composite Index ETF	16.01%
XEF	iShares Core MSCI EAFE IMI Index ETF	15.04%
XHS	iShares Core Canadian Short Term Corporate Bond Index ETF	5.91%
GOVT	iShares US Treasury Bond ETF	3.88%
USIG	ISHARES BROAD USD INVESTMENT GRADE CORPORATE BOND ETF	3.67%
IEMG	iShares Core MSCI Emerging Markets ETF	2.8%
	Cash (USD & CAD)	0.14%

63% of the above asset allocation is towards equities and the balance is focused on fixed income-generating securities. Most of these fixed income securities consist of government and corporate bonds which are as safe as they come with the offset of low yields. This results in the overall yield of XBAL ETF being less than 2% at the moment. But these incomes are guaranteed.

iShares Core Balanced ETF (XBAL) Performance

XBAL ETF has been active for well over a decade, which gives us confidence in evaluating its performance. Throughout its existence, XBAL has given around 121% returns to its investors. In dollar terms, an investment of $10,000 in 2007, would have grown up to approximately $22,186 by January 2022.

XBAL has given steady and consistent returns over its existence as per the above chart. The two major dips are during the 2008 financial crisis and the 2020 Coronavirus pandemic market crash. These dips can be found in any ETF out there.

Is XBAL ETF for You?

XBAL ETF is a major player in the ETF market in Canada and for the right reasons, too. The fund is able to provide long-term consistent gains to its investors. Although the primary objective is capital gains, the fund aims to provide an actual cash flow to the investors as well. So, while you enjoy your money being multiplied over the long term, you can also get a nice paycheque every quarter. This is why it is called a ”balanced” investment portfolio.

Check out the latest information about the fund on iShares.

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Disclosure: Any information given in this article is not to be construed as investment advice. You must do your own research before investing any money in the stock market. All investments carry inherent risks even with the possibility of losing all your money.