Investing · ETF showdown
VEQT vs XEQT vs ZEQT: the honest three-way
Canada's three big 100%-equity portfolios are so close that dithering costs more than any difference between them. But the differences that exist are knowable facts — the Canada tilt, the post-fee-war costs, the distribution rhythm — so here they are, verified at the providers, with a straight answer at the end.
Head to head, 8 factors
| Factor | VEQT Vanguard | XEQT iShares | ZEQT BMO |
|---|---|---|---|
| Management fee (current) | 0.17% (cut Nov 2025) | 0.17% (cut Dec 2025) | 0.15% — the cheapest |
| Published MER | 0.24% — stale, predates the fee cut | 0.20% | 0.18% |
| Fund size | $13.4B | $18.6B — the category giant | $789M — newest, smallest of the three |
| Canada weight | 30.6% — the heaviest home tilt | 25.3% | ~24% (top holdings: 45.9% US, 23.8% Canada) |
| International / EM mix | 17.7% developed ex-NA, 7.2% EM — more emerging markets | 24.4% developed ex-NA, 4.9% EM — more EAFE | 16.9% developed ex-NA, 9.7% EM |
| Distributions | Once a year | Quarterly (0.83% dist. yield) | Quarterly (1.26% dist. yield) |
| Rebalancing | “From time to time,” sub-advisor discretion | “As needed” to targets | Explicit quarterly schedule |
| Structure | 4 underlying Vanguard funds | 5 underlying iShares funds | 7 underlying BMO ETFs |
Verified at each provider's fact sheets and product pages, June 10, 2026. Geographic weights are current actuals and drift between rebalances. We deliberately exclude return comparisons — they mostly measure whose tilt recently won.
The one decision hiding in here: how much Canada?
Strip away the branding and this comparison is mostly a single question: do you want ~31% of your equities in Canada (VEQT) or ~25% (XEQT), against Canada's ~3% of world markets? More home weight means more dividend-tax-credit-friendly income in taxable accounts, less currency movement, and more concentration in financials and energy; less home weight means the reverse. ZEQT sits near XEQT's camp (~24%) with more US. There's no proven right answer — academics argue both sides — which is precisely why we won't pretend one fund "wins." Decide your comfort with home bias and the choice makes itself.
Costs after the fee war: stop optimizing
ZEQT's 0.15% fee and 0.18% MER take the line — and on $100,000 the whole three-way spread is roughly $20–$60 a year. VEQT looks expensive at a published 0.24% MER, but that figure predates Vanguard's November 2025 cut to 0.17%; expect it to fall at the next reporting cycle. This is the rare page where we'll say it plainly: the cost difference should not drive this decision. The MER calculator is there if you want proof.
Small print that occasionally matters
Distributions: VEQT pays once a year; XEQT and ZEQT pay quarterly — relevant only in taxable accounts or if you spend distributions. Rebalancing: BMO commits to an explicit quarterly schedule; Vanguard and iShares reserve discretion — in practice all three stay near target. Scale: XEQT's $18.6B brings the tightest spreads; ZEQT's $789M is plenty liquid for retail buys. Buy any of them at the $0-commission brokers, ideally inside a TFSA or RRSP, and see the full risk ladder — 80/20, 60/40 and below — in our all-in-one ETF comparison.
Frequently asked questions
VEQT, XEQT or ZEQT — which should I buy?
Any of them, sincerely — all three are excellent 100%-equity global portfolios within hundredths of a percent of each other, and the worst choice is dithering between them. The real differences: ZEQT is cheapest (0.15% fee, 0.18% MER) with an explicit quarterly rebalance; XEQT is the $18.6B category giant with the lighter Canada weight; VEQT carries the strongest brand, the heaviest home tilt (~31% Canada) and more emerging markets. Pick the tilt you prefer — or the cheapest — and automate your contributions.
Why does VEQT hold more Canada than XEQT?
Different design philosophies about home bias. Vanguard weights Canada at ~31% (vs ~3% of world markets) arguing currency, tax and familiarity benefits; iShares runs ~25% with more developed-international instead. Neither is wrong — heavier Canada means more dividend-tax-credit-eligible income and less currency swing, lighter Canada means less concentration in banks-and-energy. It is the single most legitimate reason to prefer one fund over the other.
Does VEQT’s once-a-year distribution matter?
Less than people think, but it’s real. VEQT distributes annually while XEQT and ZEQT pay quarterly. In a TFSA or RRSP: irrelevant — set DRIP and forget. In a taxable account, the tax owing is similar either way (and each provider publishes the income character annually); the practical difference is cash-flow rhythm, which matters if you spend distributions. Anyone investing primarily for income should look past all three 100%-equity funds anyway — toward a balanced version, VRIF, or the cash tiers in our retiree cash strategy.
Is the MER difference real money?
Honestly: barely, anymore. After the 2025 fee war all three charge 0.15–0.17% in management fees — on $100,000 the spread between the cheapest and priciest is about $20–$60 a year, and VEQT's published 0.24% MER overstates its cost because it predates Vanguard's November 2025 cut. Run any pair through the MER calculator if you want the long-run number, but this is the rare comparison where we'll tell you the fee difference shouldn't decide it.
Where do I buy them, and what about the 80/20 and 60/40 versions?
All three trade on the TSX and cost $0 at the commission-free brokers. Each family runs the full risk ladder — VGRO/XGRO/ZGRO at 80/20, VBAL/XBAL/ZBAL at 60/40, and conservative versions below that — compared family-by-family in our all-in-one ETF guide. Same logic applies at every rung: pick the risk level first, then the family.
This page is for educational purposes only and is not investment advice. Fund facts verified at provider fact sheets and product pages on June 10, 2026; published MERs lag the 2025 fee cuts and geographic weights drift between rebalances. We deliberately exclude performance comparisons. Read each fund's documents before buying. See our methodology.