XEQT vs VEQT
Which is Better for Canadian Investors?
Quick Verdict
Choose XEQT if you want the lowest possible fee on a global all-equity portfolio. Choose VEQT if you prefer Vanguard's brand and slightly higher Canadian home-bias tilt. Both are excellent one-decision funds — the 0.04% MER difference is negligible over most time horizons, but XEQT's cost advantage compounds meaningfully over 30+ years.
Side-by-Side Comparison
| Metric | XEQT | VEQT |
|---|---|---|
| Management Expense Ratio (MER) | 0.20% | 0.24% |
| Asset Allocation | 100% Equity | 100% Equity |
| US Equity Weight | ~47% | ~43% |
| Canadian Equity Weight | ~24% | ~30% |
| International Developed | ~22% | ~20% |
| Emerging Markets | ~5% | ~5% |
| Number of Underlying Holdings | ~9,400+ | ~13,500+ |
| Distribution Frequency | Quarterly | Quarterly |
| Currency Hedging | Unhedged | Unhedged |
| Eligible Accounts | TFSA, RRSP, FHSA, RESP | TFSA, RRSP, FHSA, RESP |
Key Differences
Fee Advantage
XEQT charges 0.20% versus VEQT's 0.24%. On a $100,000 portfolio, that saves you roughly $40 per year. Over 30 years of compounding, this difference translates into thousands of dollars in additional wealth. XEQT wins on cost.
Canadian Home Bias
VEQT allocates approximately 30% to Canadian equities, while XEQT holds about 24%. Canada represents less than 3% of global market capitalization, so both ETFs overweight Canada significantly. If you want more international diversification and less concentration in Canadian banks and energy companies, XEQT is the better fit.
US Market Exposure
XEQT has a higher US equity allocation (~47%) compared to VEQT (~43%). Since the US market has historically delivered the strongest long-term returns among developed markets, this gives XEQT a slight growth edge — but also more concentration risk in a single economy.
Total Holdings Breadth
VEQT holds over 13,500 individual stocks through its underlying Vanguard funds, compared to XEQT's approximately 9,400 through iShares funds. Both provide exceptional diversification, but VEQT captures slightly more small-cap and micro-cap exposure globally.
Best For
Either ETF is perfect for beginners. Buy one, contribute monthly, and never think about rebalancing. If forced to choose, pick XEQT for the lower fee.
XEQT edges out VEQT here. Over a 25-30 year accumulation phase, the 0.04% annual fee savings compounds into meaningful additional wealth inside your tax-sheltered accounts.
Neither ETF is designed for dividend income. Both distribute quarterly but yields are modest (~2%). If you need monthly cash flow, consider dedicated dividend ETFs like VDY or XEI instead.
XEQT's higher US weighting gives it a slight growth tilt. For maximum growth exposure, however, consider pairing a pure S&P 500 ETF like VFV with an international ETF rather than using an all-in-one product.
Final Recommendation
Choose XEQTif…
you want the lowest-cost all-in-one global equity portfolio, prefer a slightly higher US allocation, and plan to invest for 10+ years in a TFSA or RRSP without touching it.
Choose VEQTif…
you prefer Vanguard's fund family, want a slightly larger allocation to Canadian stocks, or already hold other iShares products and want to diversify across fund providers.
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