Is VEQT or XEQT better?

They are near-substitutes: both are globally diversified all-equity portfolios that rebalance themselves. XEQT carries a slightly lower fee and slightly less Canadian home bias; VEQT slightly more of both. Long-run results have been very close, and either is a coherent choice. Educational, not a recommendation.

Why do these funds hold so much Canada?

Deliberate home bias: Canada is only about 3% of world markets, but the providers weight it at roughly 25% to 30% for currency alignment, tax treatment of Canadian dividends, and investor comfort. Whether that tilt helps or hurts varies by period; you can test both tilts on data.

Are all-in-one ETFs worth the extra fee?

The wrapper costs a few basis points more than holding the underlying funds separately, in exchange for automatic rebalancing and one-trade simplicity. For many investors that is cheap insurance against tinkering; DIY is also perfectly viable. Price both in dollars on your balance.

Should I hold 100% stocks?

All-equity funds fully participate in bear markets (severe historical drawdowns around 50% for global stocks). The answer depends on horizon and temperament; stress test the profile and, if the worst case is unlivable, the same wrappers exist with bond sleeves at 80/20, 60/40 and 40/60.

VEQT vs XEQT: Canada's All-in-One ETFs, Compared

6 min read · Updated 2026-09-07

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VEQT (Vanguard) and XEQT (iShares) are Canada's flagship all-in-one, all-equity ETFs: one ticker that holds thousands of stocks across Canada, the US and the rest of the world, rebalances itself, and asks nothing further of you. They are arguably the simplest complete portfolios money can buy in Canada.

They are also nearly the same product, which has not stopped one of the internet's most durable debates. This guide lays out the real differences, sizes them honestly, and shows how to test the choice on data instead of forum conviction. Educational, not a recommendation.

Backtest an all-equity mix →

Already computed · real data

VEQT vs XEQT on real data

Side by side, same dates

VEQT grew from $10,000 to $23,903 between Sep 2019 and Oct 2026 (12.9% a year). Its worst fall was -24%, from Dec 2019 to Mar 2020, and it took 8 months to get back to that high. XEQT grew from $10,000 to $24,453 between Sep 2019 and Oct 2026 (13.3% a year). Its worst fall was -24%, from Oct 2021 to Sep 2022, and it took 26 months (about 2 years) to get back to that high.

Real 2019-09 to 2026-10 data, dividends reinvested, rebalanced yearly. Past performance doesn't predict future results.

Growth of $10,000, Sep 2019 to Oct 2026

VEQTXEQT

Figures in US dollars, the backtester's default: VEQT.TO and XEQT.TO trade in another currency and are converted. You can switch the currency in the backtester.

Run VEQT with your own numbers →Run XEQT with your own numbers →

Keep watching one of them, free: VEQT or XEQT. A free account saves it as your plan and checks it for you every month.

For educational and informational purposes only, not financial, investment, tax, or legal advice. Backtests are hypothetical; past performance does not guarantee future results.

What an all-in-one equity ETF is

Each fund is a wrapper holding several underlying index ETFs from the same provider, covering the Canadian, US, international developed and emerging markets. The wrapper maintains fixed target weights, so you get global diversification plus automatic rebalancing in a single trade. All-equity means exactly that: no bond cushion, full stock-market volatility, aimed at long horizons.

Where they actually differ

The recipes differ modestly, and the figures below are approximate and drift over time; check current fact sheets for precision:

VEQT vs XEQT at a glance (approximate)
	VEQT (Vanguard)	XEQT (iShares)
Canadian stocks (home bias)	about 30%	about 25%
US stocks	about 40% to 45%	about 45%
International + emerging	about 30%	about 30%
Management fee (MER)	about 0.24%	about 0.20%
Holdings approach	wraps Vanguard index ETFs	wraps iShares index ETFs

Approximate compositions; providers adjust weights and fees over time. Both are broadly diversified global equity portfolios.

How much do the differences matter?

Less than the debate suggests. A few percentage points more Canada and a few basis points of fee produce return differences that are usually small change next to what the OVERALL decision (all-equity, globally diversified, automatic) already settled. In most periods the two funds' returns land within a whisker of each other, and which one leads flips with whether Canadian stocks led or lagged.

The honest framing: picking either and holding it beats deliberating between them for another month. The bigger questions are whether all-equity suits your horizon and stomach (a 100% stock fund will fully participate in bear markets) and whether the convenience premium over building the same mix from three or four index funds yourself is worth it to you (it is small, and many find it clearly worth paying).

All-equity is the real decision

Both providers offer the same wrapper at lower stock weights (80%, 60%, 40%) with bonds filling the rest. History is blunt about what all-equity means: broad global stocks have seen drawdowns around 50% in severe crises. If that number would break you, the VEQT-vs-XEQT question is the wrong question; the stock share is the right one.

Test the choice on data

Rather than adjudicating forum threads, put the underlying idea through the tools: backtest a global equity mix with a 25% versus 30% Canadian tilt and see how small the long-run gap is; stress test the all-equity profile through 2008 and 2020 to preview the ride; and check the fee difference in dollars on your actual balance. Ten minutes of data usually ends a debate that threads have sustained for years.

Try it yourself

Backtest PortfolioTest global equity mixes with different Canadian tilts on decades of data.Open tool →Stress TestPreview what all-equity felt like in 2008, 2020 and 2022 before living it.Open tool →Fee X-RayPut the fee difference in dollars on your actual balance and horizon.Open tool →

FAQ

Is VEQT or XEQT better?: They are near-substitutes: both are globally diversified all-equity portfolios that rebalance themselves. XEQT carries a slightly lower fee and slightly less Canadian home bias; VEQT slightly more of both. Long-run results have been very close, and either is a coherent choice. Educational, not a recommendation.
Why do these funds hold so much Canada?: Deliberate home bias: Canada is only about 3% of world markets, but the providers weight it at roughly 25% to 30% for currency alignment, tax treatment of Canadian dividends, and investor comfort. Whether that tilt helps or hurts varies by period; you can test both tilts on data.
Are all-in-one ETFs worth the extra fee?: The wrapper costs a few basis points more than holding the underlying funds separately, in exchange for automatic rebalancing and one-trade simplicity. For many investors that is cheap insurance against tinkering; DIY is also perfectly viable. Price both in dollars on your balance.
Should I hold 100% stocks?: All-equity funds fully participate in bear markets (severe historical drawdowns around 50% for global stocks). The answer depends on horizon and temperament; stress test the profile and, if the worst case is unlivable, the same wrappers exist with bond sleeves at 80/20, 60/40 and 40/60.

Key terms in this guide

Plain-English definitions in the Learning Hub.

CAGR (Compound Annual Growth Rate) →Volatility (annualized standard deviation) →Maximum drawdown →Total return →

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