Where to Invest $7,000 in January

January is one of those months savvy Canadian investors tend to circle on the calendar, mainly because you’re also getting another $7,000 of new Tax-Free Savings Account (TFSA) contribution room. If your cash flow allows it, putting that TFSA room to work as early as possible gives your money more time to compound.

The bigger question is what to actually do with that $7,000. While I can’t provide financial advice, I can share what I would personally consider if I wanted a simple, one-ticket solution. My preference would be an all-in-one asset allocation exchange-traded fund (ETF).

But instead of defaulting to the usual options from Vanguard or iShares, one fund that stands out to me is the Fidelity All-in-One Equity ETF (NEOE:FEQT). Here’s why it’s different and worth taking a look at.

What is FEQT?

FEQT is a global equity-focused strategy. Like most equity-heavy asset allocation ETFs, it gives you exposure to Canadian stocks, U.S. stocks, and international developed markets in a single holding.

Where it differs from plain-vanilla options is in how those stocks are selected. FEQT is built using a factor-based approach. Factors are characteristics of stocks that academic research has shown may influence long-term returns and risk.

In this ETF, Fidelity tilts the portfolio toward value stocks, which trade at lower prices relative to fundamentals; momentum stocks, which have been performing well recently; quality stocks, which tend to have strong balance sheets and stable earnings; and low-volatility stocks, which historically fluctuate less than the broader market.

These factor tilts are applied across U.S., Canadian, and international equities. FEQT also includes a modest allocation to global small-cap stocks, which adds exposure to the size factor. Historically, smaller companies have delivered higher long-term returns, albeit with more volatility, which can complement large-cap-heavy portfolios.

On the surface, FEQT looks like a standard global equity ETF. Under the hood, it’s doing something more nuanced than simply owning the market passively.

The crypto kicker

One of the most distinctive features of FEQT is its cryptocurrency exposure. Unlike most asset allocation ETFs, Fidelity includes a roughly 3% allocation to Bitcoin through its own proprietary Bitcoin ETF.

Fidelity has been an early mover among large asset managers in building digital asset infrastructure, including self-custody capabilities. In FEQT, that shows up as a small but meaningful allocation to Bitcoin, which increases both risk and potential return.

Bitcoin is volatile, but even a modest allocation can materially impact performance over time. Over the past three years, FEQT has benefited from this exposure, contributing to an annualized return of 21% over that period, which has outpaced many traditional asset allocation ETFs.

The tradeoff is cost. FEQT has a management expense ratio of 0.43%, compared to about 0.20% for more traditional all-in-one ETFs. You’re paying extra for factor tilts and crypto exposure. So far, that higher fee has been justified by performance, but investors need to be comfortable with the added volatility.

The post Where to Invest $7,000 in January appeared first on The Motley Fool Canada.

Should you invest $1,000 in Fidelity All-in-One Equity ETF right now?

Before you buy stock in Fidelity All-in-One Equity ETF, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Fidelity All-in-One Equity ETF wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• The Best Stocks to Invest $2,000 in a TFSA Right Now
• TSX Today: What to Watch for in Stocks on Tuesday, December 30
• The Smartest Growth Stocks to Buy With $2,000 Right Now
• 10 Years From Now You’ll Be Thrilled You Bought These Outstanding TSX Dividend Stocks
• Got $1,000? These Canadian Stocks Look Like Smart Buys Right Now

Fool contributor Tony Dong has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.