As it turns out, you lucked out and missed some rough markets this last year, so it’s not a bad time to shift into more, though the markets will be a real rollercoaster; a real test of that risk tolerance.

Do you pay your financial advisor? If not, it may be that he’s pushing the mutual funds because that’s where he makes his money — though a 0.5% MER is quite reasonable (is that for the equity funds or just the fixed income funds?). The trade fee for ETFs shouldn’t be much of an issue — I think Four Pillars and Canadian Capitalist have some posts on when it makes sense to switch from a mutual fund (a low cost one, such as TD’s e-series) to an ETF; if you’re doing regular contributions then the trade fees can bite you, but in that case you can buy no-load mutual funds every month, then rebalance once a year into the ETFs, or some variation on that plan.

I agree with TMW: you’re pretty underweight in foreign equity. I’d worry about getting the cash/fixed income/Canadian equity/foreign equity balance down first, settle on ETFs vs. other low-cost funds, and get that working for you before worrying about the last few percent of your allocation (commodities, REITs, etc).