Harmony portfolios blend low-cost passive ETFs with actively managed and factor-based investment strategies across 10 risk levels. The goal is to deliver similar long-term returns as ModernAdvisor's Core ETF portfolios, while aiming for lower volatility and reduced downside during market stress. While this is the objective, there are no guarantees of outperformance or lower drawdowns.
Harmony portfolios are available across all account types and are designed by ModernAdvisor's team of CFA charterholders. They cost approximately 0.20% more per year than Core ETF portfolios.
Who are Harmony portfolios best for? Investors who want global diversification but prefer a smoother ride through market cycles — and are comfortable paying a modest additional fee for the blend of active and passive management that makes that possible.
Equity and Fixed Income allocation of the Harmony Portfolios
ModernAdvisor offers 10 different variations of the Harmony Portfolios, from Risk Level 1 to Risk Level 10. Risk Level 1 is the most conservative, made up of 90% cash equivalents and fixed income, and 10% equities (i.e. stocks). The equity exposure in the portfolios increases in 10% increment per Risk Level. Risk Level 10, the most growth-oriented portfolio, is made up of 100% equities.
Portfolio Holdings
Harmony portfolios are built using the following funds across equity, fixed income, and cash asset classes:
Ticker | Fund Name | Asset Class | Strategy |
AUSF | Global X Adaptive US Factor ETF | U.S. Equities | Factor |
SMLF | iShares US Small-Cap Equity Factor ETF | U.S. Small Cap | Passive |
GCG470 | Guardian Capital Global Equity Fund | Global Equity | Actively Managed |
VXM | CI Morningstar International Value Index ETF | Global Equity | Factor |
VXC | Vanguard FTSE Global All Cap ex Canada Index ETF | Global Equity | Passive |
VEE | Vanguard FTSE Emerging Markets All Cap Index ETF | Emerging Markets Equity | Passive |
XIC | iShares Core S&P/TSX Capped Composite Index ETF | Canadian Equity | Passive |
DGRC | WisdomTree Canada Quality Dividend Growth Index ETF | Canadian Equity | Factor |
PSA | Purpose High Interest Savings ETF | Cash | Passive |
"Factor" funds track rules-based strategies (e.g. quality, momentum, dividend growth) rather than market-cap weighting, and sit between purely passive and actively managed.
Portfolio Allocations by Risk Level
Each of the 10 risk levels carries a different mix of equity, fixed income, and cash. Risk Level 1 is the most conservative (90% fixed income / cash, 10% equities); Risk Level 10 is 100% equities.
Active vs. Passive Split by Risk Level
The blend of active and factor strategies vs. passive index ETFs varies by risk level. In conservative portfolios the fixed income sleeve dominates the active allocation; in growth portfolios the equity factor and actively managed funds take a larger share.
Fees
ModernAdvisor's annual management fee for Harmony portfolios:
Investment Amount | Annual Management Fee |
First $250,000 | 0.70% |
$250,000 – $1,000,000 | 0.60% |
Over $1,000,000 | 0.40% |
We pay a portion of our management fees to Guardian Capital for the management of their funds. In addition to our management fees listed above, each fund within the portfolios has a Management Expense Ratio (MER). The average MER of the funds in the portfolio depends on the risk level, and is generally around 0.2%.
If you have been referred to ModernAdvisor, you may pay service fees to the referral partner. In most cases, the services fees are for helping you establish your financial goals, providing financial planning guidance, developing overall wealth strategies, tax planning and/or assisting with the opening of your ModernAdvisor account(s).
Each account is also subject to a minimum management fee of $5/month per account or $2.50/month per RESP account.
ModernAdvisor management fee and advisor Service Fee are also subject to GST/HST based on the investor’s province of residence.
Minimum Investment
The minimum investment for Harmony Portfolios is $5,000 per account.