VEQT Fee Breakdown
How much does VEQT's MER actually cost?
VEQT is Vanguard's all-equity one-ticker portfolio and XEQT's closest rival. Its MER is now essentially matched to XEQT's, so the real question is what that fee costs you and whether holding the parts yourself is worth it.
Calculate your VEQT cost
VEQT is already selected. Enter your RRSP, TFSA, and non-registered balances to see what its MER and foreign withholding tax cost you per year, and where splitting starts to pay.
Your Portfolio
Enter what you have in each account. Leave 0 for any you don't use.
Your Savings
What VEQT's 0.20% MER costs per year
VEQT's MER is roughly 0.20% (estimated from its current management fee). On a $100,000 position that is about $200 a year, and around $1,000 on $500,000. The fee is taken from fund returns, so you never see a bill, but it compounds against you all the same.
Like every all-in-one, VEQT holds US equity through a Canadian-dollar wrapper (VUN), so it pays the 15% US foreign withholding tax (FWT) on US dividends even in an RRSP. Replace VUN with VTI held directly in an RRSP and the Canada-US treaty removes that tax. The calculator combines the MER gap and the FWT recovery for your specific account mix.
VEQT specifications
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
What does VEQT hold?
VEQT owns roughly 13,500 stocks across Canada, the US, developed international, and emerging markets, weighted toward each region's global share with Vanguard's traditional Canadian home-country tilt. It is 100% equity and rebalances inside the fund. Its single annual December distribution makes adjusted-cost-base tracking simpler in a non-registered account than XEQT's quarterly payouts.
The do-it-yourself version swaps in VTI for the US sleeve (held directly for the RRSP tax benefit), plus VCN for Canada, VIU for developed international, and VEE for emerging markets. Same exposure, lower blended fee, more maintenance.
The convenience cost at common portfolio sizes
The convenience cost: VEQT vs splitting
Assumes 50% RRSP allocation. See the calculator for your own numbers.
| Portfolio | Annual cost | 20-year cost (compounded) |
|---|---|---|
| $250K | $429/yr | $15,790 |
| $500K | $859/yr | $31,580 |
| $1M | $1,717/yr | $63,161 |
Annual cost combines MER drag and foreign withholding tax savings foregone, against a split into VTI, VCN, VIU, VEE. Assumes a 50% RRSP allocation. The 20-year figure compounds annual savings at 6% growth. Use the calculator above for your own account mix.
Is VEQT's fee worth it versus DIY?
If your portfolio is modest, VEQT's fee is small enough that the simplicity wins. As the balance grows, the combined MER and withholding-tax savings from splitting become harder to ignore, especially if a large share sits in an RRSP where the FWT recovery is biggest.
Because VEQT and XEQT are so close on cost, the split decision usually matters more than the choice between the two funds. Preselect VEQT below and enter your balances to find your breakeven.