Beginner guide
XEQT vs VEQT
XEQT and VEQT are two of the most popular ETFs among Canadian investors who want a simple, all-stock portfolio in one purchase. Each holds thousands of companies from around the world and rebalances itself. They're very similar, and the differences are smaller than online debates suggest.
Fund details such as fees, holdings and country weights change over time. The figures below are approximate. Check each fund's official page for current numbers before investing. This guide compares features; it isn't a recommendation of either fund.
What they are
- XEQT is the iShares Core Equity ETF Portfolio, from BlackRock.
- VEQT is the Vanguard All-Equity ETF Portfolio, from Vanguard.
Both are "ETFs of ETFs": they hold a handful of index ETFs covering the US, Canada, other developed countries and emerging markets. Both are 100% stocks, with no bonds. Both trade on the TSX in Canadian dollars. If you're new to ETFs, read what is an ETF? first.
Side by side
| XEQT | VEQT | |
| Provider | BlackRock (iShares) | Vanguard |
| Stocks / bonds | 100% / 0% | 100% / 0% |
| Approx. US weight | Roughly 45% | Roughly 45% |
| Approx. Canada weight | Roughly 25% | Roughly 30% |
| Approx. international + emerging | Roughly 30% | Roughly 25% |
| Annual fee (MER) | Around 0.2% | Around 0.2% |
| Rebalancing | Automatic | Automatic |
What actually differs
1. Home-country weight. VEQT has historically held a somewhat larger share of Canadian stocks than XEQT. Canada is only a few percent of the world's stock market, so both funds deliberately hold more Canada than a pure global index would. Some investors prefer a bit more home bias; others prefer less.
2. Fees. Both are inexpensive. The difference between them has typically been a few hundredths of a percentage point a year, around $0.40 a year per $1,000 invested. Check the current MER on each fund's page.
3. The underlying indexes and providers. Each uses its own family's index ETFs, so the exact companies and weights differ slightly. In practice, both own most of the same large companies.
Because of these small differences, one will usually beat the other slightly in any given year, and which one leads changes from year to year.
What they have in common
- Very broad diversification across thousands of companies and many countries.
- Automatic rebalancing, so you don't need to manage several funds.
- Full stock-market risk. With no bonds, they can fall 30% or more in a bad market. They suit money you won't need for many years.
- Foreign withholding tax. Some US and international dividend tax is lost inside the funds, whichever account you hold them in. See US dividend withholding tax for Canadians.
Similar funds
Other providers offer comparable all-equity portfolios, such as BMO's ZEQT. There are also versions with some bonds included for people who want less volatility, usually with names ending in GRO (growth) or BAL (balanced).
Choosing between them
For most long-term investors, the decision matters far less than investing regularly, keeping costs low and not selling in a panic during downturns. Many people simply pick one and stick with it. Holding both adds little, because they overlap almost entirely.
You can look up both on StockSignalCheck's research tool to compare their recent price trends side by side, but remember that short-term price differences say little about which fund is better for the long run.
Keep learning
This guide is for education only. It isn't personalized financial, investment or tax advice, and nothing here is a recommendation to buy or sell any security. Investing involves risk, including the possible loss of your money.