ETF Comparison

XEQT vs VEQT: which should you buy?

Two functionally similar all-equity ETFs from iShares and Vanguard. After Vanguard's recent management-fee cut, the MER gap has closed to roughly zero: here's how to decide on everything else.

Compare all three

XEQT vs VEQT vs CAGE

Add CAGE to the picture: passive vs factor-tilted all-in-ones in one table, with an interactive cost-vs-premium chart.

Open the 3-way →

Side-by-side overview

	XEQT	VEQT
MER	0.20%	~0.20% (est.)
Holdings	~8,400	~13,743
Equity / Bond	100% equity	100% equity
US weight	~45%	~45%
Distribution	Quarterly	Annual (December)
AUM	~$20.3B CAD	~$15.7B CAD
Inception	Aug 2019	Jan 2019
Exchange	TSX	TSX

Full specifications

XEQT: ETF Specifications

Verified Jul 17, 2026Valid through Dec 31, 2026Source

MER: 0.20%
Holdings: ~8,400
Equity / Bond: 100% equity
Distribution: Quarterly
Inception: Aug 7, 2019
AUM: ~$20.3B CAD
Exchange: TSX
Currency: CAD

VEQT: ETF Specifications

Verified Jul 17, 2026Valid through Dec 31, 2026Source

MER: ~0.20% (est.)
Holdings: ~13,743
Equity / Bond: 100% equity
Distribution: Annual (December)
Inception: Jan 29, 2019
AUM: ~$15.7B CAD
Exchange: TSX
Currency: CAD

Key differences

MER: 0.20% vs ~0.20% (estimated)

Vanguard recently cut VEQT's management fee from 0.22% to 0.17%, a 5 bps reduction. The MER (which adds operating expenses to the management fee) hadn't been republished at the time of writing; the previously published MER was 0.24%, and the new figure should land near ~0.20%. XEQT's MER is unchanged at 0.20%. For practical purposes, the cost difference between XEQT and VEQT is now small enough to be treated as a tie. The remaining differentiators are distribution cadence, country weights, and the issuer's fund family.

Note on VEQT MER: Vanguard cut VEQT's management fee from 0.22% to 0.17%. The MER shown here (~0.20%) is our estimate; the previously published MER was 0.24%. We'll update this once Vanguard publishes the new official MER.

Distribution frequency

XEQT pays cash distributions quarterly, while VEQT pays once per year in December. In registered accounts, this is mainly a cash-flow preference. In non-registered accounts, both funds still require you to review the year's tax-slip components.

The distribution-timing difference

A quarterly fund does not create four T3 slips, and not every cash distribution changes adjusted cost base. Update ACB for items such as return of capital and reinvested capital gains when they are reported for the year. VEQT's annual payout may make cash reconciliation feel simpler, but it does not remove the tax-slip review. See the Asset Location Optimizer for help deciding which accounts to use.

Country weights

XEQT holds approximately 45% US, 25% Canada, 25% international developed, and 5% emerging markets. VEQT holds approximately 45% US, 30% Canada, 18% international developed, and 7% emerging markets. The differences reflect their respective underlying funds. Both are tracking global markets: the gap is a few percentage points of regional tilt, not a strategy difference. Neither will behave meaningfully differently from the other over the long term.

Liquidity and AUM

XEQT has more AUM than VEQT (~$20.3B vs ~$15.7B) and typically trades with tighter bid-ask spreads. For buy-and-hold investors making occasional contributions, this difference is negligible. For investors rebalancing frequently or in large amounts, XEQT's slightly better liquidity is a minor point in its favour.

iShares vs Vanguard

Both iShares (BlackRock) and Vanguard are large, well-established institutions with strong Canadian ETF track records. For a passive index ETF, the manager's identity is largely cosmetic: your returns track the underlying index, not the manager's skill. The ETF structure legally separates your holdings from the provider, so neither company's financial health is a meaningful risk to your investment.

How to decide

Pick XEQT if:

→ The lowest MER is your priority
→ You're holding in RRSP or TFSA only (distribution timing is irrelevant)
→ You want the most liquid all-in-one option

Pick VEQT if:

→ You prefer one annual cash distribution
→ A December-only cash payout fits your income plan
→ You prefer Vanguard's fund family

The convenience trade-off

The comparison below shows what just-buying XEQT (the more popular choice) costs annually and over 20 years vs splitting into its underlying components. This applies directionally to VEQT too: both ETFs have similar but not identical split savings.

The convenience cost: XEQT vs splitting

Assumes 50% RRSP allocation. See the calculator for your own numbers.

Portfolio	Annual cost	20-year cost (compounded)
$250K	$401/yr	$14,749
$500K	$802/yr	$29,497
$1M	$1,604/yr	$58,995

See your portfolio's cost → ETF Split Calculator

Read the standalone case

Just buy XEQT?The case for XEQT: pros, cons, who it's for, and what it costs in convenience.Read the XEQT guide →Just buy VEQT?The case for VEQT: including why the annual distribution matters for non-registered accounts.Read the VEQT guide →

Frequently asked questions

Are XEQT and VEQT essentially the same ETF?+

Yes, with small differences. Both are 100% equity all-in-one ETFs diversified across global markets using a market-cap approach. XEQT is from iShares (BlackRock) and VEQT is from Vanguard Canada. The main practical differences are MER (XEQT 0.20%, VEQT ~0.20% estimated after Vanguard's recent management fee cut), distribution frequency (XEQT quarterly, VEQT annual in December), AUM (XEQT larger), and slightly different country weights. The underlying strategy is nearly identical.

Is there still an MER difference between XEQT and VEQT?+

Roughly no. Vanguard recently cut VEQT's management fee from 0.22% to 0.17%, dropping its estimated MER to about 0.20% and essentially matching XEQT's 0.20%. The 4 bps gap that used to favour XEQT has largely closed. The remaining cost drag for both ETFs is foreign withholding tax on US equity held through Canadian-dollar wrappers, which neither all-in-one eliminates. Splitting into the underlying components does.

Why does VEQT distribute only annually?+

Vanguard Canada pays VEQT's cash distribution annually, while XEQT pays quarterly. This changes cash-flow timing, not the number of T3 slips. In a non-registered account, adjusted cost base must still reflect any return of capital and reinvested distributions reported for the year. In registered accounts, the timing is mainly a personal preference.

Which is better for a TFSA, RRSP, or non-registered account?+

For registered accounts (RRSP, TFSA), the fee gap is now small after Vanguard's management-fee cut, so the choice comes down mainly to issuer preference and country weights. In non-registered accounts, VEQT pays cash annually and XEQT quarterly, but both require the same tax-slip review for adjusted cost base. Neither ETF eliminates foreign withholding tax: both hold US equity through Canadian wrappers. The Asset Location Optimizer at FolioNorth helps you compare account placement.

Can I hold both XEQT and VEQT?+

Yes, but there's little reason to. They hold essentially the same global market with slightly different weights, so holding both doesn't add meaningful diversification. If you've already started with one, there's no compelling reason to switch, given transaction costs and potential capital gains in non-registered accounts. Pick one and stay consistent.

Run the split for your portfolio: see your exact annual and 20-year savings for either ETF.

Open the ETF Split Calculator →