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 has a 99.8% concentration in other equity ETFs with top underlying holdings spanning some of the largest companies across Canada and the US.
As of January 31, 2023, the ETF had 58.5 million units outstanding at a cumulative market value of $1.5 billion.
Since its inception, the XEQT ETF has delivered 9.54% annualized returns with a 3-year return of 7.86%.
VEQT
The Vanguard All-Equity ETF Portfolio invests in equity ETF securities focused on US, Canada, emerging markets and developed markets excluding North America.
Similar to the XEQT, the ETF is primarily for investors seeking long-term capital gains growth through diversified equity exposure across markets.
However, the allocations look slightly different as the VEQT ETF offers a greater concentration of equities in the Canadian market than its iShares counterpart.
As of January 31, 2023, the ETF had delivered 9.74% annualized returns since inception with a 3-year return of 7.80%.
Performance: XEQT vs. VEQT
XEQT Annualized Performance as of March 3, 2023:
- 3-Year: 7.86%
- Since inception: 9.54%
VEQT Annualized Performance as of March 3, 2023:
- 3-Year: 7.80%
- Since Inception: 9.74%
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 (44.46%)
- iShares S&P/TSX Capped Composite (25.19%)
- iShares MSCI EAFE IMI Index (25.10%)
- iShares Core MSCI Emerging Markets Index (5.03%)
- CAD Cash (0.11%)
- USD Cash (0.11%)
VEQT:
- Vanguard U.S. Total Market ETF (42.11%)
- Vanguard FTSE Canada All Cap Index ETF (30.40%)
- Vanguard FTSE Developed All Cap ex North America Index ETF (19.97%)
- Vanguard FTSE Emerging Markets All Cap Index ETF (7.52%)
Frequently Asked Questions
- Is XEQT actively managed?
- Is XEQT a Canadian stock?
- How do you buy VEQT in Canada?
