InvestCube

Automatic portfolio rebalancing

Open an InvestCube account

ETFs made easy

Take the worry out of investing. Choose InvestCube and your Exchange Traded Fund (ETF)1 portfolio will be automatically rebalanced in response to market changes. It's a hassle-free solution.

With InvestCube you can:

  • Build your ETF portfolio by choosing from 5 asset classes
  • Choose among a selection of ETFs
  • Benefit from your portfolio being rebalanced automatically
  • Save on management fees

 

$10,000

minimum investment

Rebalancing fee of

0.30% to 0.50%

You'll also enjoy
commission-free trading!


Transfer fees

refunded

up to $135 plus taxes

 

$0

annual administration fee

Icône ampoule

Tips from our experts

Exchange-traded funds (ETFs) are baskets of securities that are traded on a stock exchange like shares. Generally, investors use ETFs for two reasons: as a passive way to invest over the long term, or to gain exposure to a short-term trend in a given index.

Automatic rebalancing: advantages and pricing

Automatic rebalancing consists of restoring the original proportion allocated to each asset class following market fluctuations. Your portfolio therefore retains its initial diversification over the years without requiring any intervention on your part.

  • InvestCube automatically rebalances your portfolio at least 2 times a year or up to 12 times if necessary
  • The portfolio is rebalanced when an asset class deviates by 20% or more from its target weight.
InvestCube rebalancing fees

InvestCube rebalancing fees

Rebalancing fees for InvestCube are calculated based on all the portfolios held in the same root.2

They are taxable and billed quarterly on the 22nd day of January, April, July and October. Fees are based on the average value of the portfolio on the last business day of each month.

NEW! Personalize your ETF portfolio in 3 steps.

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Select your portfolio’s weighing

Choose the weight associated to each asset class by selecting among the 5 following portfolios:

  • Conservative
  • Moderate
  • Balanced
  • Growth
  • Equity
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Choose your investment strategy

For each asset class, select your preferred investment strategy*:

  • Passive investment strategy
    Passive investment strategy:
    An investment strategy that tracks an index or benchmark model as closely as possible. A passive investor generally adopts a position that does not seek to outperform the index or benchmark model, but rather to match it. For example, an investor might seek to replicate the performance of the entire Canadian stock market.
  • Active investment strategy 3
    Active investment strategy:
    An active strategy consists in adapting to fluctuations in market conditions rather than in replicating an index. Different types of ETFs can be included in an active investment strategy; pure ETFs, with a portfolio manager choosing the securities to include in the portfolio, or Smart Beta ETFs, relying instead on a systematic approach based on pre-established rules for picking securities.
  • A combination of both

*No strategy selection required for the Cash asset class

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Add diversification

Looking for more diversification? Add an alternative investment ETF.

What is an alternative investment?
Alternative investment ETFs provide more diversification and risk management opportunities than conventional asset classes since their objective is to provide low correlation to, and lower volatility than, the return of the equity markets.
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The illustrations are for example purposes only

Discover the possibilities

Simulate your portfolio

For personalized assistance, call one of our dedicated representatives at

1-800-363-3511

Open an account in three steps

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Contact us or sign up online

For personalized assistance, call one of our dedicated representatives at 1‑800‑363‑3511

If you prefer to sign up online, please complete this form. Print, sign and send it to us by mail or bring it to a National Bank branch.* Your account will be opened within 24 to 48 hours.

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Create your portfolio

Once you open your account, you will receive an email with a link to our new selection tool where you can create your personalized portfolio. It's easy to use and no installation is required.

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Activate your account

Our dedicated team will contact you by telephone to confirm your selection and complete the account opening process.

Ready to take advantage of our automatic rebalancing solution?

Open an InvestCube account

The fine print

Additional definitions

Passive investment strategy: An investment approach aiming to closely match the returns of an index or other benchmark. A passive investor generally takes a position that doesn’t seek to outperform a benchmark or an index, but rather exactly mirror it. A passive investor would, for example, seek to track the performance of the entire Canadian stock market.

Active Investing: An active strategy aims to adapt to fluctuating market conditions rather than perfectly reproducing a broad index. Different types of ETFs can be included in an active strategy; pure active-investing ETFs that may use a portfolio manager to choose which stocks to include in the fund portfolio or Smart-beta ETFs that may use a rules-based, systematic approach to selecting stocks.

Index: A market index is a hypothetical portfolio of investment holdings, which represents a segment of the financial market. Investors use indexes as a basis for portfolio or passive index investing. For example, the S&P/TSX Composite Index is the benchmark Canadian index, representing roughly 70% of the total market capitalization on the Toronto Stock Exchange (TSX) with about 250 companies included in it.

Diversification: Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. The rationale behind this technique is that a portfolio constructed of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security. Because ETFs typically try to replicate a particular index, they can provide exceptional diversification for an investor looking to gain exposure to a particular area of the market.

Fixed-income ETF: Fixed income ETFs generally seek to track underlying indices composed of individual bonds. Like equity ETFs, they trade on stock exchanges. Government and corporate bonds are the most common types of fixed-income products.  

Equity ETF: Equity ETFs generally seek to track underlying indices composed of individual stocks. Like fixed-income ETFs, they trade on stock exchanges.

Alternative investments: Alternative investment solutions generally include financial assets that do not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative ETFs therefore provide diversification and risk management opportunities.

Management expense ratio (MER): The Management Expense Ratio (MER) represents the combined total of the management fee, operating expenses and taxes charged to a fund during a given year, expressed as a percentage of a fund's average net assets for that year. In general, ETFs tend to have much lower MERs compared to mutual funds.

Holdings: Holdings are the contents of an investment portfolio held by an individual or entity, such as a mutual fund or an ETF. The number and types of holdings within a portfolio contribute to the degree of its diversification. A mix of stocks across different sectors, bonds of different maturities and other investments would suggest a well-diversified portfolio, while concentrated holdings in a handful of stocks within a single sector indicates a portfolio with very limited diversification.

Distribution yield: A distribution yield is the measurement of cash flow paid by an ETF, real estate investment trust, or another type of income-paying vehicle. Distribution yields generally provide a snapshot of income payments for investors.

Return on exchange-traded funds*

Exchange-Traded Funds
1 month 3 months 6 months 1 year 3 years annualized
5 years annualized Annualized since
inception
BMO Aggregate Bond Index ETF (ZAG)
0.51% -0.52% 2.43% 9.55% 3.66%
3.36.% 4.10%
Horizons Active Corporate Bond ETF (HAB)
0.68% 0.08% 2.68% 9.39% 4.14%
3.68% 4.59%
iShares Core S&P/TSX Capped Composite Index ETF (XIC)
3.59% 4.45% 7.93% 15.75% 7.33%
7.33% 6.54%
BMO Low Volatility Canadian Equity ETF (ZLB)
4.07% 3.20% 7.29% 19.73% 10.77%
10.77% 13.78%
iShares Core S&P U.S. Total Market Index ETF (XUU)
4.72% 7.80% 12.55 % 14.52% 13.17.%
- 11.89%
BMO MSCI USA High Quality Index ETF (ZUQ)
5.19% 8.55% 15.50% 22.35% 17.36% 16.36% 16.79%
iShares Core MSCI EAFE IMI Index ETF (XEF)
2.34% 7.96% 7.94% 12.32% 9.24%
7.92% 9.55%
iShares Edge MSCI Multifactor EAFE Index (XFI) 2.67% 8.27% 6.07% 9.54% 7.97%
- 6.55%
Horizons Seasonal Rotation ETF (HAC)
2.67% 1.03% 3.86% 8.83% 7.13%
8.12% 8.13%
BMO Aggregate Bond Index ETF (ZAG)
1 month 0.51%
3 months -0.52%
6 months 2.43%
1 year 9.55%
3 years annualized
3.66%
5 years annualized 3.36.%
Annualized since
inception
4.10%
Horizons Active Corporate Bond ETF (HAB)
1 month 0.68%
3 months 0.08%
6 months 2.68%
1 year 9.39%
3 years annualized
4.14%
5 years annualized 3.68%
Annualized since
inception
4.59%
iShares Core S&P/TSX Capped Composite Index ETF (XIC)
1 month 3.59%
3 months 4.45%
6 months 7.93%
1 year 15.75%
3 years annualized
7.33%
5 years annualized 7.33%
Annualized since
inception
6.54%
BMO Low Volatility Canadian Equity ETF (ZLB)
1 month 4.07%
3 months 3.20%
6 months 7.29%
1 year 19.73%
3 years annualized
10.77%
5 years annualized 10.77%
Annualized since
inception
13.78%
iShares Core S&P U.S. Total Market Index ETF (XUU)
1 month 4.72%
3 months 7.80%
6 months 12.55 %
1 year 14.52%
3 years annualized
13.17.%
5 years annualized -
Annualized since
inception
11.89%
BMO MSCI USA High Quality Index ETF (ZUQ)
1 month 5.19%
3 months 8.55%
6 months 15.50%
1 year 22.35%
3 years annualized
17.36%
5 years annualized 16.36%
Annualized since
inception
16.79%
iShares Core MSCI EAFE IMI Index ETF (XEF)
1 month 2.34%
3 months 7.96%
6 months 7.94%
1 year 12.32%
3 years annualized
9.24%
5 years annualized 7.92%
Annualized since
inception
9.55%
iShares Edge MSCI Multifactor EAFE Index (XFI)
1 month 2.67%
3 months 8.27%
6 months 6.07%
1 year 9.54%
3 years annualized
7.97%
5 years annualized -
Annualized since
inception
6.55%
Horizons Seasonal Rotation ETF (HAC)
1 month 2.67%
3 months 1.03%
6 months 3.86%
1 year 8.83%
3 years annualized
7.13%
5 years annualized 8.12%
Annualized since
inception
8.13%

 

* The data above are as of November 30, 2019. 
Although the information presented is based on sources we believe to be reliable and up-to-date, we cannot guarantee its accuracy. The information in this page should not be construed as investment advice.

The asset mixes in detail

Conservative: The Conservative asset mix is made up of 70% fixed income and 25% equity. The detailed proportions for each asset class for the Conservative asset mix are as follows:

Asset class

 

Proportion of portfolio

(without alternative investments)

Proportion of portfolio

(with alternative investments)

Cash

5% 5%

Fixed income

70%
70%

Canadian equity

9.5%
8%

US equity

9.5% 8%

International equity

6% 4%

Alternative investments

- 5%

Cash

Proportion of portfolio

(without alternative investments)

5%

Proportion of portfolio

(with alternative investments)

5%

Fixed income

Proportion of portfolio

(without alternative investments)

70%

Proportion of portfolio

(with alternative investments)

70%

Canadian equity

Proportion of portfolio

(without alternative investments)

9.5%

Proportion of portfolio

(with alternative investments)

8%

US equity

Proportion of portfolio

(without alternative investments)

9.5%

Proportion of portfolio

(with alternative investments)

8%

International equity

Proportion of portfolio

(without alternative investments)

6%

Proportion of portfolio

(with alternative investments)

4%

Alternative investments

Proportion of portfolio

(without alternative investments)

-

Proportion of portfolio

(with alternative investments)

5%

The Alternative investments asset class is optional in all portfolios

5% cash is mandatory in all portfolios.

 

Moderate: The Moderate asset mix is made up of 55% fixed income and 40% equity. The detailed proportions for each asset class for the Moderate asset mix are as follows:

Asset class

 

Proportion of portfolio

(without alternative investments)

Proportion of portfolio

(with alternative investments)

Liquidités

5% 5%

Fixed income

55%
55%

Canadian equity

15.5%
14%

US equity

15.5% 14%

International equity

9% 7%

Alternative investments

- 5%

Liquidités

Proportion of portfolio

(without alternative investments)

5%

Proportion of portfolio

(with alternative investments)

5%

Fixed income

Proportion of portfolio

(without alternative investments)

55%

Proportion of portfolio

(with alternative investments)

55%

Canadian equity

Proportion of portfolio

(without alternative investments)

15.5%

Proportion of portfolio

(with alternative investments)

14%

US equity

Proportion of portfolio

(without alternative investments)

15.5%

Proportion of portfolio

(with alternative investments)

14%

International equity

Proportion of portfolio

(without alternative investments)

9%

Proportion of portfolio

(with alternative investments)

7%

Alternative investments

Proportion of portfolio

(without alternative investments)

-

Proportion of portfolio

(with alternative investments)

5%

The Alternative investments asset class is optional in all portfolios

5% cash is mandatory in all portfolios.

 

Balanced: The Balanced asset mix is made up of 40% fixed income and 55% equity. The detailed proportions for each asset class for the Balanced asset mix are as follows:

Asset class

Proportion of portfolio

(without alternative investments)

Proportion of portfolio

(with alternative investments)

Cash

5% 5%

Fixed income

40%
40%

Canadian equity

21%
18%

US equity

21% 18%

International equity

13% 9%

Alternative investments

- 10%

Cash

Proportion of portfolio

(without alternative investments)

5%

Proportion of portfolio

(with alternative investments)

5%

Fixed income

Proportion of portfolio

(without alternative investments)

40%

Proportion of portfolio

(with alternative investments)

40%

Canadian equity

Proportion of portfolio

(without alternative investments)

21%

Proportion of portfolio

(with alternative investments)

18%

US equity

Proportion of portfolio

(without alternative investments)

21%

Proportion of portfolio

(with alternative investments)

18%

International equity

Proportion of portfolio

(without alternative investments)

13%

Proportion of portfolio

(with alternative investments)

9%

Alternative investments

Proportion of portfolio

(without alternative investments)

-

Proportion of portfolio

(with alternative investments)

10%

The Alternative investments asset class is optional in all portfolios

5% cash is mandatory in all portfolios.

 

Growth: The Growth asset mix is made up of 30% fixed income and 65% equity. The detailed proportions for each asset class for the Growth asset mix are as follows:

Asset class

 

Proportion of portfolio

(without alternative investments)

Proportion of portfolio

(with alternative investments)

Cash

5% 5%

Fixed income

30%
30%

Canadian equity

25%
22%

US equity

25% 22%

International equity

15% 11%

Alternative investments

- 10%

Cash

Proportion of portfolio

(without alternative investments)

5%

Proportion of portfolio

(with alternative investments)

5%

Fixed income

Proportion of portfolio

(without alternative investments)

30%

Proportion of portfolio

(with alternative investments)

30%

Canadian equity

Proportion of portfolio

(without alternative investments)

25%

Proportion of portfolio

(with alternative investments)

22%

US equity

Proportion of portfolio

(without alternative investments)

25%

Proportion of portfolio

(with alternative investments)

22%

International equity

Proportion of portfolio

(without alternative investments)

15%

Proportion of portfolio

(with alternative investments)

11%

Alternative investments

Proportion of portfolio

(without alternative investments)

-

Proportion of portfolio

(with alternative investments)

10%

The Alternative investments asset class is optional in all portfolios

5% cash is mandatory in all portfolios.

 

Equity: The Equity asset mix is made up of 15% fixed income and 80% equity. The detailed proportions for each asset class for the Equity asset mix are as follows:

Asset class

Proportion of portfolio

(without alternative investments)

Proportion of portfolio

 (with alternative investments)

Cash

5% 5%

Fixed income

15%
15%

Canadian equity

30%
26%

US equity

30% 26%

International equity

20% 13%

Alternative investments

- 15%

Cash

Proportion of portfolio

(without alternative investments)

5%

Proportion of portfolio

 (with alternative investments)

5%

Fixed income

Proportion of portfolio

(without alternative investments)

15%

Proportion of portfolio

 (with alternative investments)

15%

Canadian equity

Proportion of portfolio

(without alternative investments)

30%

Proportion of portfolio

 (with alternative investments)

26%

US equity

Proportion of portfolio

(without alternative investments)

30%

Proportion of portfolio

 (with alternative investments)

26%

International equity

Proportion of portfolio

(without alternative investments)

20%

Proportion of portfolio

 (with alternative investments)

13%

Alternative investments

Proportion of portfolio

(without alternative investments)

-

Proportion of portfolio

 (with alternative investments)

15%

The Alternative investments asset class is optional in all portfolios

5% cash is mandatory in all portfolios.

What is rebalancing?

Each portfolio is rebalanced:

  • In March and September regardless of the portfolio’s deviation

AND

  • Monthly* when an asset class deviates by 20% or more from its target weighting

OR

  • More than 6% of the portfolio’s value is in cash


*Portfolios are assessed for rebalancing on the 22nd of each month (or the business day before the 23rd), and the rebalancing is done the next day.

No transaction will be executed for less than $125.

 

Example of a monthly rebalancing

The following portfolio must be rebalanced because an asset class has deviated from its target weight by more than 20%.

Asset class
Target weight
Weight when account is reassessed
Deviation
Required action
Weight after rebalancing

Fixed income

$55,000 (55%) $54,000 (54%)
5%
  $54,000 (52.4%)

Canadian equity

$14,000 (14%) $17 000 (16.5%) 18%
Sell for $1,150 (2) $15,850 (15.4%)

US equity

$14,000 (14%) $15,000 (14.6%) 4%
  $15,000 (14.6%)

International equity

$7,000 (7%) $8,000 (7.8%) 11%
  $8,000 (7.8%)

Alternative investments

$5,000 (5%) $4,000 (3.9%) 22% Buy for $1,150 (1) $5,150 (5.0%)

Cash

$5,000 (5%) $5,000 (4.8%) 3%   $5,000 (4.8%)

Portfolio total

$100,000 (100%) $103,000 (100%)     $103,000 (100%)

Fixed income

Target weight
$55,000 (55%)
Weight when account is reassessed
$54,000 (54%)
Deviation
5%
Required action
 
Weight after rebalancing
$54,000 (52.4%)

Canadian equity

Target weight
$14,000 (14%)
Weight when account is reassessed
$17 000 (16.5%)
Deviation
18%
Required action
Sell for $1,150 (2)
Weight after rebalancing
$15,850 (15.4%)

US equity

Target weight
$14,000 (14%)
Weight when account is reassessed
$15,000 (14.6%)
Deviation
4%
Required action
 
Weight after rebalancing
$15,000 (14.6%)

International equity

Target weight
$7,000 (7%)
Weight when account is reassessed
$8,000 (7.8%)
Deviation
11%
Required action
 
Weight after rebalancing
$8,000 (7.8%)

Alternative investments

Target weight
$5,000 (5%)
Weight when account is reassessed
$4,000 (3.9%)
Deviation
22%
Required action
Buy for $1,150 (1)
Weight after rebalancing
$5,150 (5.0%)

Cash

Target weight
$5,000 (5%)
Weight when account is reassessed
$5,000 (4.8%)
Deviation
3%
Required action
 
Weight after rebalancing
$5,000 (4.8%)

Portfolio total

Target weight
$100,000 (100%)
Weight when account is reassessed
$103,000 (100%)
Deviation
 
Required action
 
Weight after rebalancing
$103,000 (100%)

 

Details of the steps:

Step 1: InvestCube determines if an asset class has sufficiently strayed from its target weight to be included in the rebalancing. Since the Alternative Investment asset class has deviated by 22%, a $1150 buy is required to restore the target weight. 

Step 2: InvestCube verifies which asset class is furthest from its target weight. Since the Canadian equity asset class has deviated by 18%, a $1150 sell is required to enable the alternative investment ETF buy.  

 

Example of a bi-annual rebalancing

Each asset class is rebalanced regardless of deviation 

Asset class
Target weight
Weight when account is reassessed
Deviation
Required action
Weight after rebalancing

Fixed income

$55,000 (55%) $54,000 (52.4%)
5%
Buy for 2650$ $56,650 (55%)

Canadian equity

$14,000 (14%) $17 000 (16.5%) 18%
Sell for 2580$
$14,420 (14%)

US equity

$14,000 (14%) $15,000 (14.6%) 4%
Sell for 580$ $14,420 (14%)

International equity

$7,000 (7%) $8,000 (7.8%) 11%
Sell for 790$ $7,210 (7%)

Alternative investments

$5,000 (5%) $4,000 (3.9%) 22% Buy for $1,150
$5,150 (5%)

Cash

$5,000 (5%) $5,000 (4.8%) 3% Buy for $150 $5,150 (5%)

Portfolio total

$100,000 (100%) $103,000 (100%)     $103,000 (100%)

Fixed income

Target weight
$55,000 (55%)
Weight when account is reassessed
$54,000 (52.4%)
Deviation
5%
Required action
Buy for 2650$
Weight after rebalancing
$56,650 (55%)

Canadian equity

Target weight
$14,000 (14%)
Weight when account is reassessed
$17 000 (16.5%)
Deviation
18%
Required action
Sell for 2580$
Weight after rebalancing
$14,420 (14%)

US equity

Target weight
$14,000 (14%)
Weight when account is reassessed
$15,000 (14.6%)
Deviation
4%
Required action
Sell for 580$
Weight after rebalancing
$14,420 (14%)

International equity

Target weight
$7,000 (7%)
Weight when account is reassessed
$8,000 (7.8%)
Deviation
11%
Required action
Sell for 790$
Weight after rebalancing
$7,210 (7%)

Alternative investments

Target weight
$5,000 (5%)
Weight when account is reassessed
$4,000 (3.9%)
Deviation
22%
Required action
Buy for $1,150
Weight after rebalancing
$5,150 (5%)

Cash

Target weight
$5,000 (5%)
Weight when account is reassessed
$5,000 (4.8%)
Deviation
3%
Required action
Buy for $150
Weight after rebalancing
$5,150 (5%)

Portfolio total

Target weight
$100,000 (100%)
Weight when account is reassessed
$103,000 (100%)
Deviation
 
Required action
 
Weight after rebalancing
$103,000 (100%)

Phone transactions

The following transactions must be carried out by phone with a Customer Service representative. 

Initial purchase

After you have completed your InvestCube account opening, you must call us to activate the account, confirm your asset class and ETF selection, and transfer funds. A minimum investment of $10,000 is required.

Subsequent deposits

Subsequent deposits must be $3,000 or more to be invested immediately. If you deposit less than $3,000, the amount will remain in cash and be considered the next time the portfolio is rebalanced. 

Change in portfolio

You can carry out one modification to your portfolio each year for free. A modification includes a change to the proportion associated to each asset class as well as a change of selected ETFs.  A $45 fee will be charged for subsequent changes.

Refusal of rebalancing

A secure message will be sent to you through our transactional site before we rebalance your InvestCube account. You can contact us by phone within 2 business days of this message to refuse rebalancing. Unless otherwise stated, your account will be rebalanced.

Partial sale

You can carry out two partial sales each year for free. A $45 fee will be charged for subsequent sales.The portfolio's value must exceed $10,000 after a partial sale.

RRIF account sale

If payment instructions are provided, sales in RRIF accounts will be carried out automatically. 

Sale in full

If you want to close your InvestCube account, your ETFs must be sold. Funds must be transferred to another account.

Deactivating the rebalancing feature

You keep your ETFs, but they are no longer rebalanced

Legal disclaimers

 

  1. Management and other fees may apply to ETF investments. Please read the prospectus before making an investment. ETFs are not guaranteed, their values change frequently and past performance may not be repeated

  2. A root is defined as the first six (6) digits of an account number

  3. The active investment strategy may include SmartBeta ETFs
     

Although the information presented is based on sources we believe to be reliable and up-to-date, we cannot guarantee its accuracy. The information in this document should not be construed as investment advice.

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