VEQT vs XEQT vs ZEQT: which all-equity ETF is right for you?
A side-by-side breakdown of Canada's most popular one-ticket ETFs by fee, exposure, and overlap.
What are one-ticket ETFs?
One-ticket ETFs are all-in-one funds that hold a globally diversified portfolio of equities in a single product. Instead of buying and managing five or six separate ETFs yourself, you buy one fund and get instant exposure to thousands of companies across North America, international developed markets, and emerging markets.
VEQT (Vanguard), XEQT (iShares), and ZEQT (BMO) are the three most popular all-equity versions available on Canadian exchanges. They're designed for investors who want 100% equity exposure and are comfortable with higher short-term volatility in exchange for long-term growth potential.
Side-by-side comparison
| Fund | MER | US Equity | Canadian Equity | International | Emerging |
|---|---|---|---|---|---|
| VEQT | 0.24% | ~44% | ~30% | ~18% | ~8% |
| XEQT | 0.20% | ~45% | ~25% | ~22% | ~8% |
| ZEQT | 0.20% | ~45% | ~25% | ~22% | ~8% |
Approximate allocations — check fund providers for current weights as these shift over time.
The fee difference
VEQT charges 0.24% annually, while XEQT and ZEQT both sit at 0.20%. On a $100,000 portfolio, that's a $40/year difference. Not life-changing, but over 20–30 years of compounding it adds up. If cost is your primary decision factor, XEQT or ZEQT have a slight edge.
Canada home bias
The most meaningful difference between these three funds is the Canadian equity allocation. VEQT tilts more heavily toward Canada (~30%) compared to XEQT and ZEQT (~25%). Canada represents only about 3% of global market cap, so both allocations are a deliberate home-country bias — the question is how much you want.
More Canadian exposure means more concentration in financials and energy, which dominate the TSX. If you already have a pension or real estate tied to the Canadian economy, you may actually prefer the lower Canada weight in XEQT or ZEQT.
Overlap between the three
Because all three funds hold the same underlying global equity universe, their overlap is extremely high — estimated above 95% by holdings. The practical difference in performance over a 10-year period is likely to be negligible. Pick one, stick with it, and don't switch.
Which one should you pick?
If you want the lowest fee and slightly less Canada bias: XEQT or ZEQT. If you're already with Vanguard or prefer a slightly higher Canadian tilt: VEQT. All three are excellent choices for long-term investors. The decision matters far less than the consistency of your contributions and your ability to hold through market downturns.