XEQT vs VFV vs VEQT (2026): Fees, Holdings & Overlap

Published May 11, 2026 · 8 min read · By the WealthWise team · Updated September 8, 2026

XEQT and VEQT are globally diversified all-equity portfolios, while VFV tracks large US companies in the S&P 500. This comparison explains their fees, holdings, concentration, historical returns and Canadian account considerations without treating any fund as a universal choice.

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30-second summary

Open the public WealthWise profiles for XEQT, VEQT or VFV, or see the current VEQT fee, holdings, allocation and distribution summary.

XEQT fee update: iShares currently publishes a 0.19% MER and a 0.17% management fee for XEQT following the management-fee reduction effective December 18, 2025.

VEQT fee update: Vanguard reduced VEQT's management fee to 0.17% effective November 18, 2025. Its currently published 0.22% MER is calculated at the fund's fiscal year-end and does not yet fully reflect that reduction.

TL;DR: XEQT and VEQT are both global all-equity portfolios with different target weights. VFV is structurally different because it tracks only the S&P 500. Fees, diversification and concentration therefore need to be compared together.

1. Real geographic allocation

This is where the difference shows up. XEQT and VEQT both aim for global diversification, but with different weightings:

VEQT has a stronger Canadian home country bias (about 30% vs 26%). Their US weights are currently similar, while XEQT has more international-developed exposure and VEQT has more emerging-market exposure. Allocations change as markets move and the funds rebalance.

2. Fees (MER) — a detail that matters over 30 years

The MER (Management Expense Ratio) is charged annually on your assets. On $1,000 invested over 30 years with a 7% annualized return:

In this simplified constant-return illustration, the fee difference produces about $266 more ending value for VFV than VEQT per $1,000 invested. It does not account for different market exposures, taxes, tracking difference or changing fees, so it is not a forecast.

3. Taxation in RRSP vs TFSA vs non-registered

RRSP (Registered Retirement Savings Plan)

A common myth worth clearing up: the Canada-US tax treaty only exempts the 15% withholding on US dividends if the US-listed security is held directly in an RRSP (for example, VOO or VTI). VFV, XEQT and VEQT are Canadian-listed ETFs (.TO): the 15% is withheld at the fund level before the dividend reaches the account, so the treaty exemption does not apply to them. A US-listed ETF changes that treatment but also introduces USD conversion and operational differences (see Norbert's Gambit).

TFSA (Tax-Free Savings Account)

No treaty exemption applies — the 15% withholding on US dividends is not recoverable in a TFSA. The amount depends on the fund's US exposure and dividend yield, so it is one input in the comparison rather than a complete measure of expected return.

Non-registered (taxable account)

Dividend taxation varies by source. Eligible Canadian dividends and foreign dividends receive different Canadian tax treatment, so the funds' different geographic weights can produce different after-tax outcomes. Personal circumstances and provincial rules also matter.

4. How the exposures differ in common comparisons

One-fund equity portfolio

XEQT and VEQT both combine several regional equity markets in one fund. VFV is a single-market building block focused on large US companies, so it does not provide the same geographic coverage on its own.

Long-term TFSA comparison

The funds differ in US exposure, dividend yield and diversification. US-dividend withholding is not recoverable in a TFSA, but it should be assessed together with fees, concentration and the role of the fund in the overall portfolio.

RRSP and fee comparison

VFV has a lower published MER than XEQT and VEQT, but it covers only the S&P 500. Recreating a global allocation with several funds adds allocation and rebalancing decisions that do not exist in the same way with a one-ticket portfolio.

Higher US large-cap exposure

VFV provides direct S&P 500 exposure. That also produces greater geographic and company concentration than the globally diversified funds.

Higher Canadian equity exposure

VEQT has a higher Canadian target weight than XEQT. This changes the portfolio's exposure to Canadian financials, energy and materials, among other sectors.

5. How to compare historical performance

Compare all three funds over the same start and end dates, in Canadian dollars, using the same treatment of reinvested distributions and fees. A price chart alone is not a total-return comparison. The issuers publish dated performance histories in the official product pages linked below.

Different US, Canadian and international weights can produce different results in any period. A past lead does not establish which fund will outperform next; these funds do not have identical market exposure.

6. What about ZEQT, XGRO/VGRO or VOO?

Three other tickers come up constantly in the same debate. Here is where they fit:

• ZEQT (BMO All-Equity ETF) — BMO's all-equity portfolio has a structure similar to XEQT and VEQT, with its own target weights, published fees and rebalancing methodology.
• XGRO / VGRO (80/20 growth) — the same all-in-one family but with 20% bonds instead of 100% equity, which changes both expected volatility and return characteristics. See our VGRO & XGRO guide.
• VOO (US-listed S&P 500) — the US-listed cousin of VFV. "VOO vs XEQT" is really "single US market vs global." VOO's edge: held directly in an RRSP, the 15% US-dividend withholding is exempt under the Canada-US treaty (VFV is not). The catch: you need USD, so factor in conversion via Norbert's Gambit.

XEQT in a TFSA or an RRSP?

Quick answer for the most common account questions:

• XEQT in a TFSA — gains are sheltered from Canadian tax, while US-dividend withholding can still occur inside the fund.
• XEQT in an RRSP — the Canadian-listed structure remains relevant because treaty treatment differs from holding a US-listed security directly.
• XEQT versus VEQT in a TFSA — their different regional target weights affect both exposure and the amount of foreign dividends inside the fund.

Conclusion: three funds with different portfolio roles

XEQT and VEQT package global equity markets into one rebalanced fund, with different regional targets. VFV tracks the S&P 500 at a lower published fee but carries much greater US large-cap concentration. The relevant comparison depends on the exposure being measured, not on a universal ranking.

Something to consider: track your portfolio with WealthWise to see the geographic and sector allocation, and the performance of each of your ETFs. You can also open the sample portfolio demo before creating an account.