The context

Since their launch, XEQT (iShares Core Equity ETF Portfolio) and VEQT (Vanguard All-Equity ETF Portfolio) have become the two most popular all-in-one ETFs in Canada. Their promise: a globally diversified portfolio in a single purchase, with no manual rebalancing.

Both are 100% equity, offer global exposure and target long-term investors. But there are meaningful differences. Here they are.

Side by side

Criterion XEQT (iShares) VEQT (Vanguard)
Issuer BlackRock / iShares Vanguard Canada
Expense ratio (MER) 0.20% 0.24%
Assets under management ~$5.5 billion ~$4.8 billion
Number of holdings ~9,500 ~13,500
Canadian exposure ~24% ~30%
U.S. exposure ~45% ~42%
Emerging markets ~8% ~12%
Annual dividend ~1.8% ~1.6%
Distribution frequency Quarterly Annual
Exchange TSX TSX

Fees: a difference that compounds

XEQT carries a MER of 0.20% against 0.24% for VEQT. The difference looks tiny, but over 30 years on a $500,000 portfolio it works out to roughly $10,000 in XEQT's favour.

Golden rule: Between similar ETFs, every tenth of a point in fees matters. XEQT's edge here is real, even if it stays modest.

Diversification: VEQT goes further

VEQT holds roughly 13,500 securities against ~9,500 for XEQT. That difference comes mainly from greater exposure to emerging markets (12% vs 8%) and to global small caps.

VEQT also overweights Canada (30% vs 24%), which can be seen as an advantage (home bias, dividends eligible for the Canadian tax credit) or a drawback (over-concentration in a single country).

Dividends

For income-focused investors, XEQT distributes quarterly (March, June, September, December) while VEQT distributes only once a year. For those who reinvest automatically, the frequency does not matter. For those living off their dividends, XEQT provides a steadier income stream.

Historical returns

Since their launch in 2019, both ETFs have posted very similar performance — logically enough, since they hold essentially the same markets with slightly different weights. XEQT has modestly outperformed over some periods thanks to its larger U.S. exposure, and the U.S. dominated global markets over that stretch.

Note: Past performance does not predict future returns. Both ETFs are designed for the long term — 10 years minimum.

Verdict: who should pick what?

Choose
XEQT
If you favour slightly lower fees, quarterly dividends, and a mild U.S. overweight. Ideal for investors looking to maximize passive income.
Choose
VEQT
If you want maximum diversification (more holdings, more emerging markets) and greater exposure to the Canadian market. Pure Vanguard philosophy.

The real answer

Both are excellent choices. The difference between XEQT and VEQT matters far less than the decision to invest regularly, not to panic during corrections, and to let compounding do its work. Pick one and stay with it.

How to track them with RendTrack

RendTrack lets you add XEQT or VEQT to your portfolio in seconds. The app syncs live prices from Yahoo Finance, computes your dividend yield, and projects exactly when you will be able to retire at your current savings rate.