VT vs XEQT
Which is Better for Canadian Investors?
Quick Verdict
Choose VT if you want the cheapest global equity ETF and do not mind trading in USD. Choose XEQT if you prefer a TSX-listed, CAD-denominated fund with a built-in Canadian home bias. XEQT is more practical for most Canadians; VT is more cost-efficient for experienced investors comfortable with currency conversion.
Side-by-Side Comparison
| Metric | VT | XEQT |
|---|---|---|
| Management Expense Ratio (MER) | 0.07% | 0.20% |
| Number of Holdings | ~9,800+ | ~9,400+ |
| US Equity Weight | ~62% | ~47% |
| Canadian Equity Weight | ~3% | ~24% |
| International Developed | ~26% | ~22% |
| Emerging Markets | ~10% | ~5% |
| Trading Currency | USD (NYSE) | CAD (TSX) |
| RRSP Withholding Tax | Exempt (US-listed) | Partial (on US dividends) |
| Distribution Frequency | Quarterly | Quarterly |
| Eligible Accounts | TFSA, RRSP (via US account) | TFSA, RRSP, FHSA, RESP |
Key Differences
Fee Gap
VT charges a remarkably low 0.07% MER compared to XEQT's 0.20%. That is a 0.13% annual savings. On $200,000, VT saves you $260 per year. However, Canadians buying VT incur currency conversion costs that can offset this advantage unless they use Norbert's Gambit or a USD-denominated account.
Canadian Home Bias
XEQT intentionally overweights Canada at ~24% of the portfolio, while VT holds Canada at its natural market weight of ~3%. If you want meaningful exposure to Canadian banks, energy, and mining companies, XEQT delivers it automatically. VT essentially treats Canada as a rounding error.
RRSP Tax Efficiency
VT is US-listed, so dividends held inside an RRSP are exempt from the 15% US withholding tax under the Canada-US tax treaty. XEQT, as a Canadian-listed fund holding US-listed ETFs, loses some dividends to foreign withholding tax at the fund level. This makes VT more tax-efficient inside an RRSP.
Practical Convenience
XEQT trades in Canadian dollars on the TSX. You can buy it on Wealthsimple or Questrade with zero friction. VT requires a USD-denominated brokerage account, currency conversion, and potentially different settlement procedures. For most self-directed investors, XEQT's convenience is worth the 0.13% higher MER.
Best For
XEQT is the clear winner for beginners. Buy it in Canadian dollars, hold it in your TFSA, and you own the global stock market. No currency conversion, no USD accounts, no complexity.
VT has an edge for large RRSP portfolios. The withholding tax exemption combined with the lower MER creates meaningful savings at scale. Investors with $100K+ in their RRSP should seriously consider VT if comfortable with USD trading.
XEQT is better inside a TFSA. VT does not receive withholding tax relief in a TFSA (only RRSP), so the only advantage would be the MER — which is mostly offset by currency conversion costs.
VT has higher US equity exposure (~62% vs ~47%), giving it a stronger growth tilt. It also holds more emerging markets (~10% vs ~5%), capturing higher-growth economies like India and Taiwan.
Final Recommendation
Choose VTif…
you have a large RRSP portfolio ($100K+), are comfortable trading in USD, want the lowest-cost global equity exposure, and prefer true market-weight country allocations without Canadian home bias.
Choose XEQTif…
you want a simple, CAD-denominated global equity portfolio on the TSX, prefer meaningful Canadian home bias, and value convenience over maximum cost efficiency.
Explore Each ETF
More ETF Comparisons
XEQT vs VEQT
Choose XEQT if you want the lowest possible fee on a global all-equity portfolio.
Compare Now →XGRO vs VGRO
Choose XGRO for lower fees.
Compare Now →VFV vs ZSP
VFV and ZSP are functionally identical — same index, same fee, same currency exposure.
Compare Now →VFV vs XEQT
Choose VFV if you believe the US market will continue to dominate and you want the lowest fee possible.
Compare Now →