In This Article
The XEQT vs VEQT debate is one of the most common questions in Canadian investing. Both are 100% equity all-in-one ETFs that hold thousands of global stocks in a single ticker. Both are excellent. But there are meaningful differences that might make one better for your situation.
In this guide, I will compare XEQT (iShares) and VEQT (Vanguard) on every metric that matters: MER, number of holdings, geographic allocation, tracking error, and tax efficiency.
XEQT vs VEQT at a Glance
XEQT (iShares Core Equity ETF Portfolio) charges 0.20% MER, holds approximately 9,600 stocks across 40+ countries, and allocates 24% to Canada, 47% to the US, 18% to international developed, and 6% to emerging markets.
VEQT (Vanguard All-Equity ETF Portfolio) charges 0.24% MER, holds approximately 13,000 stocks, and allocates 30% to Canada, 43% to the US, 18% to international developed, and 7% to emerging markets.
Head-to-Head Comparison
The two biggest differences are MER and Canadian allocation. XEQT is 0.04% cheaper annually — on a $100,000 portfolio that saves you $40 per year. VEQT has a higher Canadian allocation (30% vs 24%), which means more exposure to banks, energy, and materials, plus slightly better tax efficiency on Canadian dividends in a non-registered account.
Which Should You Choose?
Choose XEQT if: You want the lowest possible fee, prefer less concentration in Canadian sectors, and are investing in a TFSA or RRSP where the Canadian dividend tax credit does not apply.
Choose VEQT if: You want broader diversification by number of holdings, prefer a home-country bias for stability and tax efficiency, or are investing in a non-registered account where the eligible dividend tax credit helps.
The honest truth: both are exceptional. The 0.04% MER difference is negligible. Pick one, contribute consistently, and do not look back. Switching between them later is easy but unnecessary.
Frequently Asked Questions
Is XEQT or VEQT better for a TFSA?
Either works perfectly in a TFSA. XEQT has a slight edge due to its lower 0.20% MER, since the Canadian dividend tax credit does not apply inside a TFSA anyway.
Can I hold both XEQT and VEQT?
You can, but there is no benefit — they hold nearly identical underlying stocks. Holding both adds complexity without diversification.
How often do XEQT and VEQT pay dividends?
Both pay quarterly distributions, typically in March, June, September, and December. Current yields are approximately 2.0% for both funds.
What is the difference between XEQT and XGRO?
XEQT is 100% equities. XGRO holds 80% equities and 20% bonds, making it less volatile but with lower expected long-term returns. Choose XGRO if you want some bond cushion during market downturns.