XEQT vs VEQT: Analyzing All-Equity ETF Portfolios

ETF Jul 17, 2024 2 min read
XEQT vs VEQT: Analyzing All-Equity ETF Portfolios

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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 March 28, 2024, the ETF had 106.4 million units outstanding at a cumulative market value of $3.2 billion.

Since its inception, the XEQT ETF has delivered 10.94% annualized returns with a 3-year return of 8.87%.

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 February 29, 2024):

  • 1-Year: 18.22%
  • 3-Year: 8.87%
  • Since inception: 10.94%

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 (44.92%)
  • iShares MSCI EAFE IMI Index (25.04%)
  • iShares S&P/TSX Capped Composite (24.70%)
  • iShares Core MSCI Emerging Markets Index (5.01%)
  • USD Cash (2.80%)
  • CAD/USD (0.00%)

As of March 25, 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

Frequently Asked Questions

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Is XEQT actively managed?

While XEQT is not an actively-managed ETF, the iShares team continuously monitors and rebalances exposures to maintain its target weightage across its asset classes.

Is XEQT a Canadian stock?

XEQT is the ticker for the iShares Core Equity ETF Portfolio that is a fund traded on the Toronto Stock Exchange.

How do you buy VEQT in Canada?

In Canada, you can buy VEQT through your online brokerage. Like how you would go about buying a stock, you can place a market or limit order through your brokerage. Once it is executed at your desired price, VEQT will be added to your investment portfolio.

Contributors

Harshil Dhanky
AUTHOR

Harshil Dhanky

Harshil Dhanky is a financial services professional based out of Toronto, Ontario with extensive experience in the Canadian banking industry across Toronto, Calgary, and Vancouver in the capital markets, asset management, and lending sectors.

In the past, Harshil has worked with a range of consumer lending websites, personal finance advisors, investment managers, insurance companies, and other financial institutions to write and edit whitepapers, articles, blog posts, and other collateral read by consumer audiences to help them make better financial decisions.

His work spans a wide range of Canadian personal finance topics including savings and retirement programs, debt management tips, mortgages and personal loans, and other key financial issues for Canadian consumers at each stage of their life.

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