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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 approaches, not one "winner." XEQT offers cap-weighted exposure with less Canada weight. VEQT raises the Canada allocation and pays one annual cash distribution. CAGE adds factor tilts and a higher management fee.

Side-by-side overview

XEQTVEQTCAGE
Fund fee0.20% MER0.17% management fee; updated MER pending0.28% management fee; MER pending
StrategyCap-weightedCap-weighted (home-bias)Factor-tilted
Holdings~8,400~13,743~5,882
US weight~45%~45%~44%
Canada weight~25%~30%~30%
DistributionQuarterlyAnnual (Dec)Quarterly
AUM~$20.3B~$15.7B~$640M
InceptionAug 2019Jan 2019Mar 2026

Net management-fee impact, compounded over 25 years

Management fees pull 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.

0.0% / yr
0%0.5%1.0%1.5%

Every line is measured against a zero-fee baseline, so each fund starts underwater by its own management-fee drag. Drag the slider to test how much factor outperformance CAGE would need to overcome its full 0.28% management fee and lift its line back above zero. CAGE's first MER is not yet available. XEQT and VEQT are cap-weighted index funds, so the premium applies only to CAGE.

At 0.0 percent factor premium for CAGE, 25-year net is -$28,451 for XEQT, -$28,451 for VEQT, and -$46,093 for CAGE. Positive values are net benefit; negative values are net cost.

Cumulative net management-fee impact over 25 years for XEQT, VEQT, and CAGEAt 0.0 percent factor premium for CAGE, 25-year net is -$28,451 for XEQT, -$28,451 for VEQT, and -$46,093 for CAGE. Positive values are net benefit; negative values are net cost.-$50,000-$40,000-$30,000-$20,000-$10,000$00510152025
XEQT-$28,451
VEQT-$28,451
CAGE-$46,093

Assumes $250,000 starting balance, 7% gross annual return, management fee charged on average balance, and factor premium applied only to CAGE. Other fund expenses are excluded because CAGE has not yet published an MER.

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

CAGE: ETF Specifications

Verified Jul 17, 2026Valid through Dec 31, 2026Source
Management fee
0.28% (MER pending)
Holdings
~5,882
Equity / Bond
100% equity
Distribution
Quarterly
Inception
Mar 2026
AUM
~$640M CAD
Exchange
TSX
Currency
CAD

Key differences

Published fees: 0.20% MER → 0.17% management fee → 0.28% management fee

XEQT publishes a 0.20% MER and charges a 0.17% management fee. Vanguard cut VEQT's management fee from 0.22% to 0.17%, but its displayed MER does not yet reflect that cut. CAGE's management fee is 0.28% and, as a first-year fund, it does not yet publish an MER. The directly comparable management-fee gap to CAGE is 11 basis points, or about $275 per year on $250,000, before other fund expenses and any performance differences.

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 published MER is your priority
  • →You prefer less Canada weight
  • →You want the largest asset base of the three

Pick VEQT if:

  • →You prefer more Canada weight
  • →You prefer one annual cash distribution
  • →You want cap-weighted exposure without a factor tilt

Pick CAGE if:

  • →You've read factor literature and find it convincing
  • →You have a 20+ year horizon
  • →You accept the higher management fee as the cost of the methodology

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.

PortfolioAnnual cost20-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 CAGE's higher fee worth it?+
Only if factor premia materialize in your holding period. CAGE's 0.28% management fee is 11 basis points above XEQT's and VEQT's 0.17%; CAGE's first MER is not yet available. 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%, matching XEQT's management fee. VEQT's updated MER is not yet available. Other practical differences include Canada weight and annual versus quarterly cash distributions.
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 →