VEQT vs XEQT Canada 2025 — Which All-Equity ETF Is Better?

Side-by-Side Comparison

Feature	VEQT (Vanguard)	XEQT (iShares)
Full name	Vanguard All-Equity ETF Portfolio	iShares Core Equity ETF Portfolio
Provider	Vanguard Canada	BlackRock (iShares) Canada
MER	0.24%	0.20%
Launch date	January 2019	August 2019
Equity allocation	100%	100%
Canada weight	~30%	~24%
US weight	~40%	~45%
International weight	~30%	~31%
Number of holdings	~13,000+ stocks	~9,000+ stocks
Distributions	Quarterly (small)	Semi-annual (small)
Assets under management	~$7B+	~$6B+

Key Difference: Canada Weight

The most meaningful difference between VEQT and XEQT is their allocation to Canadian stocks:

VEQT: ~30% Canada — this is a significant "home country bias" beyond Canada's ~3% global market share
XEQT: ~24% Canada — still a home country tilt, but less concentrated in Canada

Canada's stock market is heavily weighted toward financials (~33%), energy (~18%), and materials (~13%). Having more Canada means more concentration in these sectors and less exposure to global tech, healthcare, and consumer companies dominated by US firms.

  XEQT has slightly more US exposure (and therefore more tech companies like Apple, Microsoft, Nvidia, Amazon). VEQT has more Canadian banking and energy stocks. Which is "better" depends on whether you believe Canadian or global stocks will outperform — nobody knows with certainty.

VEQT Advantages

More Canadian exposure (currency hedge for CDN expenses)
Vanguard brand trust (investor-owned company)
Slightly more diversified by number of holdings
Greater Canadian dividend income (helpful in non-reg)

XEQT Advantages

Lower MER (0.20% vs 0.24%)
More US / global tech exposure
Less concentrated in Canadian banking & energy
Slightly higher global market-cap weighting

Fee Impact Over Time

Portfolio Size	VEQT Annual Fee	XEQT Annual Fee	Annual Savings with XEQT
$100	$24	$20	$4
$100,000	$240	$200	$40
$500,000	$1,200	$1,000	$200
$1,000,000	$2,400	$2,000	$400

The fee difference is real but small. At $100,000, you save $40/year with XEQT. Over 20 years compounding, that's meaningful but not life-changing. Do not switch from VEQT to XEQT if it means triggering capital gains — the tax cost will likely exceed the fee savings for years.

Verdict: Both Are Excellent — Pick One and Stick With It

Slight edge to XEQT for its lower MER and better global diversification. But VEQT is also excellent. The most important decision is having a plan and staying invested — not which of these two near-identical ETFs you choose. If you already own VEQT, there's no compelling reason to sell and switch.

Frequently Asked Questions

Should I switch from VEQT to XEQT for the lower fee? +

Only if you can do so without triggering significant capital gains taxes. In a TFSA or RRSP, you can switch for free. In a non-registered account, selling VEQT triggers capital gains tax on any appreciation — which will likely cost more in the short term than the fee savings. Generally, don't switch — just buy XEQT going forward if you prefer it.

Which has better historical performance, VEQT or XEQT? +

Performance varies year to year based on which regions outperform. In years when US stocks lead, XEQT tends to outperform slightly. In years when Canadian stocks lead, VEQT benefits. Over a long period, the difference has been minimal. Past performance doesn't predict future results.

Is VEQT or XEQT better for a TFSA? +

Both are excellent TFSA holdings. XEQT's slightly lower MER means marginally more money stays in the account long-term. But the difference is tiny — $20/year on a $50,000 TFSA. Either is a great choice for long-term TFSA investing.

What is the minimum investment for VEQT or XEQT? +

Both ETFs trade at market price on the TSX — roughly $30–$40 per unit. At Wealthsimple Trade, you can buy fractional shares for any dollar amount. At Questrade, you buy whole units. There's no formal minimum investment beyond the cost of one unit.

Can I hold both VEQT and XEQT? +

You can, but there's no benefit. They're essentially the same product from different providers. Holding both just increases portfolio complexity without meaningfully changing your risk or return profile. Choose one.