XEQT vs VEQT — What's the Actual Difference?

The honest breakdown of Canada's two most popular all-in-one ETFs. Fees, holdings, performance, and which account to hold them in.

⚠️ This is educational content, not investment advice. Please consult a qualified financial advisor for guidance specific to your situation.

What Are XEQT and VEQT, Exactly?

Both are all-in-one, 100% equity ETFs listed on the Toronto Stock Exchange. You buy one ticker, and underneath it, you own thousands of stocks from around the world — Canada, the US, international developed markets, and emerging markets — all automatically rebalanced for you.

• XEQT is iShares Core Equity ETF Portfolio, managed by BlackRock Canada
• VEQT is Vanguard All-Equity ETF Portfolio, managed by Vanguard Canada

Both are designed for investors with a long time horizon (10+ years) who want global diversification and zero maintenance.

The Fee Comparison (2026 Update)

In late 2025, both BlackRock and Vanguard cut their management fees to 0.17%. On a $10,000 investment you pay $17/year. The difference in reported MER exists because MER figures lag by one fiscal year.

The 0.04% MER gap amounts to $4 per $10,000 invested per year. On a $50,000 TFSA, that is $20 annually — the price of a decent lunch.

Bottom line on fees: There is no meaningful fee reason to choose one over the other in 2026.

Holdings and Geographic Allocation

Both funds hold the global equity market across four regions, but they weigh those regions differently. VEQT holds more Canadian equities (~30% vs ~25%) while XEQT has higher US exposure (~45% vs ~40%). VEQT also has broader global coverage by stock count — approximately 13,000+ stocks vs XEQT's ~8,400.

Whether 25% or 30% Canadian allocation is better is genuinely a matter of preference, not fact.

Performance Comparison

Since their inception in 2019, their performance has been nearly indistinguishable. No consistent pattern of outperformance exists for either fund. Any analysis claiming one is clearly superior based on historical returns is cherry-picking a time window.

The more useful question: Are you comfortable holding 100% equities through a 30-40% market crash? Both dropped sharply in early 2020 and recovered fully. Behavior matters more than fee basis points.

Which Should You Hold in a TFSA or RRSP?

Both work well in a TFSA. Neither is a US-listed ETF, so the IRS 15% withholding tax on US dividends applies either way — this is a structural issue with any Canadian-listed ETF holding US stocks.

For RRSP holders, the same logic applies. Both are Canadian-listed fund-of-funds structures, which means they do not receive the withholding tax exemption that direct US-listed ETFs like VTI or VOO would.

Want to figure out which account type makes the most sense for your situation? Use the FinancialDrive Account Type Optimizer to run the numbers.

Should You Hold Both XEQT and VEQT?

No. XEQT and VEQT overlap by approximately 90% in underlying holdings. Owning both does not add diversification — it adds complexity and slightly different geographic tilts that average out to something resembling a single fund.

Pick one. Hold it. Add more money regularly.

Curious how much the overlap actually is? The FinancialDrive ETF Overlap Checker lets you compare any two Canadian ETFs side by side.

The Bottom Line

Choose XEQT if you want slightly more US exposure and quarterly distributions. Choose VEQT if you prefer more Canadian weight and broader international coverage. Either choice is a good one. The most important thing is picking one and staying consistent.

This is educational content, not investment advice. Please consult a qualified financial advisor for guidance specific to your situation.

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