iShares Equity + Bitcoin ETF Portfolio | IBQT
I thought i was done buying this month but then BlackRock goes and launches TSX-listed ETF that blends broad global equity exposure with a small allocation to Bitcoin, giving Canadian investors a one-ticket way to hold both stocks and crypto. The new iShares Equity + Bitcoin ETF Portfolio (ticker: IBQT) began trading on the Toronto Stock Exchange on Aug. 10. IBQT targets a strategic split of 97% equities and 3% Bitcoin, with its equity sleeve spanning Canadian, U.S., international and emerging markets. A low-cost solution with a management fee of 0.22% inclusive of all underlying ETF fees.
Based on the portfolio holdings if you put $100,000 in each you would have roughly
XEQT
$45,270 U.S.
$25,520 Canada
$24,430 developed international
$4,640 emerging markets
$0 Bitcoin
IBQT
$43,310 U.S.
$24,630 Canada
$24,210 developed international
$4,750 emerging markets
$2,960 Bitcoin
Rebalancing is probably one of the strongest arguments for buying this instead of simply holding Bitcoin and XEQT separately, especially if your goal is to maintain a specific allocation to Bitcoin.
Suppose Bitcoin takes off and that 3% allocation grows to 6% or 8% of the portfolio. IBQT's asset-allocation process should gradually bring it back toward its strategic allocation. Conversely, if Bitcoin crashes and falls below target, the fund would rebalance by increasing the Bitcoin exposure.
I'm not sure I would replace XEQT with IBQT, but I did put in a $1,000 order to buy it tomorrow. So we'll start with a small position, monitor it, and see how it develops.
Going forward, I could also split some of the money that would normally go into XEQT between XEQT and IBQT. If I did that, the effective Bitcoin allocation on those new contributions would be much lower than 3%. For example, if I split contributions 50/50 between XEQT and IBQT, only half the money would have the 3% Bitcoin allocation
I'm not ready to fully pull the trigger but I like the concept and we will see where it goes
