The main difference between XEQT and VEQT is in allocations, where VEQT offers a materially higher exposure to Canadian equities while XEQT offers higher exposure to developed market equities (excluding North America).
Furthermore, XEQT is part of the iShares fund family owned by BlackRock while VEQT is part of the Vanguard Group’s fund family.
While both ETFs provide effective exposure to an all-equity portfolio of ETFs, there are slight nuances between the two including their allocations into the various securities they hold within each ETF.
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XEQT
The XEQT ETF was established in 2019 and is dedicated to providing investors with well-diversified equity exposure across both developed and emerging markets.
With a primary aim to deliver long-term capital growth, the ETF is almost completely concentrated in other equity ETFs with top underlying holdings spanning some of the largest companies across Canada and the US.
As of July 18, 2024, the ETF had 132.2 million units outstanding at a cumulative market value of $4.15 billion.
Since its inception, the XEQT ETF has delivered 11.38% annualized returns with a 3-year return of 7.83%.
VEQT
The Vanguard All-Equity ETF Portfolio (VEQT) was launched in January 2019 and is invested into global equity markets across US, Canada, developed economies (excluding North America), and emerging economies.
The fund is primarily deployed into large-cap equities with the remainder split amongst mid- to large-cap, mid-cap, mid- to small-cap, and small-cap.
VEQT is ideal for younger investors with a longer time horizon for goals such as retirement.
With diversified geographic and size allocations, it enables investors to earn steady capital gains and dividend income (paid annually) while minimizing exposure to any one particular region or market.
As of June 30, 2024, the ETF had $4.44 billion in cumulative market value.
Since its inception, the VEQT ETF has delivered 11.25% annualized returns with a 3-year return of 7.45%.
Performance: XEQT vs. VEQT
XEQT Annualized Performance (as of June 30, 2024):
- 1-Year: 19.51%
- 3-Year: 7.83%
- Since inception: 11.38%
VEQT Annualized Performance (as of June 30, 2024):
- 1-Year: 19.07%
- 3-Year: 7.45%
- Since inception: 11.25%
Fees
XEQT offers a Management Expense Ratio (MER) of 0.20% which is largely comprised of its 0.18% management fee.
VEQT offers a Management Expense Ratio (MER) of 0.24%, of which the management fee is 0.22%.
Holdings
Below are the top holdings within both XEQT and VEQT:
XEQT:
- iShares Core S&P Total U.S. Stock (45.75%)
- iShares S&P/TSX Capped Composite (24.48%)
- iShares MSCI EAFE IMI Index (24.35%)
- iShares Core MSCI Emerging Markets Index (5.11%)
- USD Cash (0.19%)
- CAD/USD (0.12%)
As of July 18, 2024
VEQT:
- Vanguard US Total Market Index ETF (45.28)
- Vanguard FTSE All Cap Index ETF (29.09%)
- Vanguard FTSE Developed All Cap ex North America Index ETF (17.94%)
- Vanguard FTSE Emerging Markets All Cap Index ETF (6.76%)
As of June 30, 2024
