XEQT vs VEQT (2026): MER, Regional Mix, Distributions and Returns Compared

XEQT (iShares) and VEQT (Vanguard) are two widely held all-equity portfolio ETFs in Canada. Both hold the global stock market in one fund and rebalance themselves; the differences are in cost, regional weights and how often they pay distributions. This page puts the two side by side. For each fund on its own, see the XEQT review and the VEQT review; the all-in-one ETF comparison adds the portfolios that include bonds, and the ETFs and index funds guide covers the basics.

XEQT vs VEQT: Quick Comparison

Both providers cut their management fees (iShares effective December 18, 2025; Vanguard effective November 18, 2025). Published MERs come from each fund’s financial statements and reflect fee changes with a lag, so the MER gap can narrow as newer statements are published.

Regional Mix

The biggest real difference is where the money goes. Weights of each fund’s underlying ETFs:

XEQT as at August 31, 2026 and VEQT as at August 31, 2026, from each provider. Remaining weight is cash.

VEQT’s Canadian weight is above XEQT’s. Both tilt toward Canada relative to its small share of world markets, which lowers currency exposure and adds dividend-tax-credit-eligible income in a taxable account, but concentrates more in Canadian banks and energy. For more on the non-North American side of a portfolio, see international ETFs for Canadians.

Cost Comparison

The dollar gap is small next to the effect of contribution amounts, asset mix and staying invested. The MER calculator projects it over decades.

Historical Performance

Calendar-year returns (net asset value, CAD):

XEQT: BlackRock fund fact sheet, August 31, 2026. VEQT: Vanguard Canada fund fact sheet, August 31, 2026. Past performance doesn’t predict future returns.

With broadly similar holdings, yearly results have stayed close; which fund comes out ahead in a given year depends mostly on whether Canadian or international stocks did better, since that is where their weights differ.

Distributions

XEQT pays quarterly; VEQT pays annually. The schedule mainly matters for cash flow and for how often a DRIP reinvests. A single annual payment also means VEQT’s unit price drops by the payout once a year on the ex-distribution date.

How to Decide

XEQT tends to suit investors who:

• Want the lower published MER
• Prefer a smaller Canadian weight
• Want distributions several times a year

VEQT tends to suit investors who:

• Want a larger Canadian allocation
• Already hold Vanguard funds and want one family
• Don’t mind a single annual distribution

What both share: thousands of stocks, automatic rebalancing, low costs, and availability at every Canadian brokerage. The larger decision is usually the stock/bond mix. Investors who want about 20% in bonds are comparing VGRO vs XGRO instead; asset allocation by age covers how to choose the mix.

Building the Same Thing Yourself

Buying the underlying index ETFs separately (for example, a Canadian, a US and an international fund) can lower the blended MER below either portfolio fund and lets you place each piece in the most tax-efficient account. The cost is rebalancing by hand and more trades. The Couch Potato portfolio guide shows that approach, and the asset location guide covers where each piece goes.

Where to Buy

Both trade on the TSX and can be held at any Canadian brokerage. Commission policies differ by platform and change over time; the online brokers guide compares them, and how to buy ETFs in Canada covers placing the order.

Related Resources

• XEQT review
• VEQT review
• VGRO vs XGRO
• ETFs for Canadian investors: the core picks