XIC vs VCN: Deciding Which ETF to Buy

The main difference between XIC and VCN is that XIC largely replicates the performance of the S&P/TSX Capped Composite Index while VCN seeks to replicate the performance of the FTSE Canada All Cap Domestic Index.

XIC

The XIC ETF was launched in February 2021 and uses the S&P/TSX Capped Composite Index as its benchmark.

XIC looks to offer investors long-term capital growth through exposure to the entire Canadian equity market.

Similar to the Canadian equity index, XIC’s sector exposure is largely concentrated within financials (31%), energy (18%), industrials (13%), and materials (12%).

As of January 31, 2023, the ETF had 286.8 million units outstanding at a cumulative market value of $9.5 billion.

Since its inception, the XIC ETF has delivered 6.99% annualized returns with a 10-year return of 8.27% post the deduction of fees.

VCN

The Vanguard FTSE Canada All-Cap Index ETF measures and tracks returns of large-cap, mid-cap and small-cap stocks that are publicly traded in the Canadian market.

Similar to its XIC counterpart, the ETF’s sector exposure is largely weighted towards financials (33%), energy (17%), materials (12%) and industrials (11%).

However the percentages look slightly different as the VCN ETF covers a broader range of equities than the TSX-focused XIC.

As of January 31, 2023, the ETF had delivered 8.32% annualized returns since inception with a 5-year return of 8.46%.

Performance: XIC vs. VCN

XIC Annualized Performance as of March 3, 2023:

• 3-Year: 9.49%
• 5-Year: 8.70%
• 10-Year: 8.22%

VCN Annualized Performance as of March 3, 2023:

• 3-Year: 9.54%
• 5-Year: 8.46%

Fees

XIC offers a Management Expense Ratio (MER) of 0.06% which is largely comprised of its 0.04% management fee. 

VCN offers a Management Expense Ratio (MER) and management fee of 0.05%.

Holdings

Below are the top holdings within both XIC and VCN:

XIC:

• Royal Bank of Canada (6.29%)
• Toronto-Dominion Bank (5.54%)
• Enbridge Inc. (3.66%)
• Canadian Pacific Railway Ltd. (3.24%)
• Canadian National Railway Co. (3.19%)
• Bank of Montreal (3.12%)
• Canadian Natural Resources Ltd. (3.00%)
• Bank of Nova Scotia (2.84%)
• Shopify Inc. Class A shares (2.59%)
• Brookfield Corp. Class A shares (2.34%)

VCN:

• Royal Bank of Canada (6.68%)
• Toronto-Dominion Bank (5.86%)
• Enbridge Inc. (3.86%)
• Canadian Pacific Railway Ltd. (3.41%)
• Canadian National Railway Co. (3.35%)
• Bank of Montreal (3.22%)
• Canadian Natural Resources Ltd. (3.10%)
• Bank of Nova Scotia (3.00%)
• Shopify Inc. Class A shares (2.61%)
• Brookfield Corp. Class A shares (2.41%)

Frequently Asked Questions