ETF Comparison

XEQT vs VEQT vs CAGE — which one-fund portfolio should you buy?

Three coherent answers to the same one-fund question: cap-weighted global equity, cap-weighted with Canada home-bias, and a multi-factor tilt.

See the XEQT vs VEQT deep-dive →•See the XEQT vs CAGE deep-dive →

Three coherent worldviews, not one "winner." If you believe markets are broadly efficient and costs dominate, XEQT is coherent. If you believe in market-cap indexing but prefer a stronger Canadian home-bias and simpler non-registered bookkeeping, VEQT is coherent. If you believe factor premia are real and you can hold through long stretches of underperformance, CAGE is coherent.

Side-by-side overview

	XEQT	VEQT	CAGE
MER	0.20%	~0.20% (est.)	~0.32% (est.)
Strategy	Cap-weighted	Cap-weighted (home-bias)	Factor-tilted
Holdings	~9,800	~13,500	~5,200
US weight	~45%	~40%	~48%
Canada weight	~25%	~30%	~22%
Distribution	Quarterly	Annual (Dec)	Quarterly
AUM	~$8B	~$5B	~$270M
Inception	Aug 2019	Jan 2019	Feb 2023

Net MER impact, compounded over 25 years

MER drag pulls the cumulative line below zero. As CAGE's assumed factor premium rises, its line crosses zero and turns into a net benefit. XEQT and VEQT have no premium, so they stay in the red.

Assumed factor premium for CAGE0.0% / yr

0%0.5%1.0%1.5%

Drag the slider to test how much factor outperformance CAGE would need to overcome its 0.12% extra MER vs XEQT. XEQT and VEQT are cap-weighted index funds, so the premium applies only to CAGE.

XEQT-$33,321

VEQT-$33,321

CAGE-$52,363

Assumes $250,000 starting balance, 7% gross annual return, MER charged on average balance, factor premium applied only to CAGE.

Full specifications

XEQT: ETF Specifications

MER: 0.20%
Holdings: ~9,800
Equity / Bond: 100% equity
Distribution: Quarterly
Inception: Aug 7, 2019
AUM: ~$8B CAD
Exchange: TSX
Currency: CAD

VEQT: ETF Specifications

MER: ~0.20% (est.)
Holdings: ~13,500
Equity / Bond: 100% equity
Distribution: Annual (December)
Inception: Jan 29, 2019
AUM: ~$5B CAD
Exchange: TSX
Currency: CAD

CAGE: ETF Specifications

MER: ~0.32% (est.)
Holdings: ~5,200
Equity / Bond: 100% equity
Distribution: Quarterly
Inception: Feb 2023
AUM: ~$270M CAD
Exchange: TSX
Currency: CAD

Key differences

MER ladder: 0.20% → ~0.20% → ~0.32%

After Vanguard's recent management-fee cut on VEQT (from 0.22% to 0.17%), the estimated VEQT MER lands near 0.20% — effectively matching XEQT. CAGE is ~12 bps above both at an estimated 0.32%. At $250,000, that is roughly zero per year for the XEQT-to-VEQT step and about $300 per year for either-to-CAGE before any performance differences. The previously published VEQT MER was 0.24%; we'll update once Vanguard publishes the new official figure.

Investment philosophy

XEQT and VEQT are cap-weighted index portfolios with different implementation details, especially Canada weight and distribution cadence. CAGE layers a factor methodology on top of global equity exposure, aiming to capture expected premia tied to value, size, and profitability characteristics.

Behavioural risk: the most important difference

The key risk with factor portfolios is not just whether the thesis is right. It is whether you can stay invested when the thesis is out of favour. If you buy CAGE without conviction and later switch after underperformance, you can lock in worse personal returns than simply owning a cap-weighted fund from day one.

How to decide

Pick XEQT if:

→Lowest MER is your priority
→You have no strong factor view
→You want maximum liquidity

Pick VEQT if:

→You prefer Canada overweight
→You hold non-registered and want annual distributions
→December-only payouts fit your ACB workflow

Pick CAGE if:

→You've read factor literature and find it convincing
→You have a 20+ year horizon
→You accept higher MER as methodology cost

The convenience trade-off

The table below shows what just-buying XEQT costs relative to splitting into underlying components. The structure of the trade-off is similar: convenience today versus basis-point savings over long horizons.

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 in plain language.Read the XEQT guide →Just buy VEQT?The case for VEQT, including annual distribution implications.Read the VEQT guide →Just buy CAGE?The case for CAGE and factor conviction.Read the CAGE guide →

Frequently asked questions

Which is best for a beginner?+

If you're just starting and don't have a strong investment philosophy yet, XEQT is usually the cleanest default: broad global exposure, low MER, and no factor thesis you need to defend through long underperformance cycles.

Is the higher CAGE MER worth it?+

Only if factor premia materialize in your holding period. CAGE charges 0.32% versus XEQT's 0.20%, so you're paying 12 bps extra every year. If factor tilts deliver enough excess return net of costs, that can be worthwhile. If they don't, you pay more for lower returns.

Should I split between XEQT, VEQT, and CAGE?+

Usually no. The portfolios overlap heavily and represent competing philosophies rather than complementary sleeves. Most investors are better served by choosing one worldview and staying consistent instead of blending three versions of global equity.

What's the difference between cap-weighted and factor-tilted?+

Cap-weighted portfolios own more of the largest companies because size determines weight. Factor-tilted portfolios deliberately overweight stocks with characteristics like value, size, and profitability that research associates with higher long-run expected returns.

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

Roughly no. Vanguard recently cut VEQT's management fee from 0.22% to 0.17%, which drops the estimated MER to about 0.20% — essentially matching XEQT. The bigger practical difference between them is now VEQT's annual December distribution, which can simplify non-registered bookkeeping.

When would CAGE be the wrong choice?+

CAGE is usually the wrong choice when you don't have conviction in factor investing. Without conviction, a long stretch of growth-led underperformance can push you to switch at the worst time, turning a theoretical edge into poor realized returns.

Run the split for your portfolio: see exact savings for any of the three.

Open the ETF Split Calculator →