ETF Comparison

VFV vs XEQT

Which is Better for Canadian Investors?

Quick Verdict

Choose VFV if you believe the US market will continue to dominate and you want the lowest fee possible. Choose XEQT if you want true global diversification across 9,400+ stocks in a single ETF. VFV is a concentrated bet on America; XEQT is a bet on the entire world economy.

Side-by-Side Comparison

Metric	VFV	XEQT
Management Expense Ratio (MER)	0.09%	0.20%
Geographic Scope	US Only	Global (45+ countries)
Number of Holdings	~503	~9,400+
US Equity Exposure	100%	~47%
Canadian Equity Exposure	0%	~24%
International Exposure	0%	~22%
Emerging Markets	0%	~5%
Automatic Rebalancing	N/A (single index)	Yes
Currency Hedging	Unhedged	Unhedged
Eligible Accounts	TFSA, RRSP, FHSA, RESP	TFSA, RRSP, FHSA, RESP

Key Differences

Diversification vs Concentration

This is the core tradeoff. VFV holds 503 US large-cap stocks — all denominated in USD and driven by the American economy. XEQT holds over 9,400 stocks across 45+ countries, spreading risk across multiple economies, currencies, and political systems. XEQT is far more diversified.

Historical Performance

The US market (S&P 500) has outperformed international markets over the past 15 years, driven by the dominance of US technology companies. This has made VFV the higher-returning fund in recent history. However, there is no guarantee this US outperformance will continue indefinitely — international markets have led in other decades.

Fee Differential

VFV charges 0.09% versus XEQT's 0.20%. That is a meaningful 0.11% gap. On $100,000, VFV saves you $110 per year in fees. However, XEQT provides automatic rebalancing across four asset classes — a service that has real value if you would otherwise need to manage multiple ETFs manually.

Simplicity Factor

XEQT is a true one-fund portfolio — buy it and you own the entire global stock market. VFV only covers US large caps, so you would need to add Canadian (VCN) and international (VIU) ETFs separately to achieve similar diversification, which adds complexity.

Best For

Beginners

XEQT is the better choice for beginners. It provides instant global diversification in a single purchase with automatic rebalancing. No need to worry about building a multi-ETF portfolio.

Long-Term TFSA & RRSP Investors

XEQT for safety through diversification, or VFV if you have conviction in continued US market leadership. Inside an RRSP specifically, VFV avoids the US withholding tax drag that affects XEQT's international holdings.

Dividend-Focused Investors

Neither is designed for dividends. XEQT's Canadian allocation includes some high-dividend bank stocks. For dedicated income, look at VDY or XEI instead.

Growth-Focused Investors

VFV has historically delivered stronger growth due to US tech sector concentration. If you are comfortable with single-country risk and believe in continued US innovation dominance, VFV is the more aggressive growth play.

Final Recommendation

Choose VFVif…

you want the cheapest way to own the S&P 500 on the TSX, believe US markets will continue outperforming, and are comfortable managing a multi-ETF portfolio for diversification.

Choose XEQTif…

you want a single-ETF global portfolio that requires zero maintenance, value diversification across 45+ countries, and prefer automatic rebalancing over manual portfolio management.

Explore Each ETF

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VFV

Vanguard S&P 500 Index ETF

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XEQT

iShares Core Equity ETF Portfolio