XEQT vs FEQT (Fidelity): Which All-Equity ETF is Right for You in 2026?

XEQT and FEQT both promise all-equity global exposure in a single ETF, but they take fundamentally different approaches to get there. XEQT is pure passive indexing. FEQT is Fidelity’s factor-based, actively tilted take — with a side of Bitcoin.

Let’s break down exactly how they compare and which one deserves your money.

Quick Overview: XEQT vs FEQT

The first thing you’ll notice: these two ETFs look similar on the surface but are very different under the hood.

What is FEQT?

FEQT (Fidelity All-in-One Equity ETF) launched in 2022 as Fidelity Canada’s entry into the all-in-one ETF space. But unlike XEQT, ZEQT, or VEQT, FEQT doesn’t just buy the whole market.

FEQT’s Factor-Based Approach

Instead of tracking broad market-cap-weighted indexes, FEQT targets four specific factors:

• Low Volatility — stocks that move less than the market
• Value — underpriced companies relative to fundamentals
• Quality — companies with strong balance sheets and consistent earnings
• Momentum — stocks with recent upward price trends

FEQT applies these factor tilts across U.S., Canadian, and international equity sleeves using 15 underlying Fidelity ETFs.

FEQT’s Bitcoin Allocation

The most controversial feature: FEQT allocates roughly 2.4% to Fidelity’s spot Bitcoin ETF. No other all-in-one ETF in Canada includes crypto exposure.

This means buying FEQT gives you automatic Bitcoin exposure — whether you want it or not.

FEQT Geographic Allocation

• US Equity: ~48%
• Canadian Equity: ~24%
• International Developed: ~23%
• Crypto (Bitcoin): ~2.4%
• Other: ~2.6%

What is XEQT?

XEQT (iShares Core Equity ETF Portfolio) is the original all-equity ETF in Canada. It takes the opposite approach to FEQT: pure, passive, market-cap-weighted indexing with zero active bets.

XEQT Holdings Breakdown

• US Equity: ~45%
• Canadian Equity: ~25%
• International Developed: ~25%
• Emerging Markets: ~5%

XEQT holds just 4 underlying iShares index ETFs that together give you exposure to over 12,000 stocks worldwide.

The 3 Big Differences

1. Passive vs Factor-Based (The Core Debate)

XEQT buys the entire market, weighted by company size. You get exactly what the market gives you. No bets, no tilts, no opinions.

FEQT makes active bets on specific factors. Fidelity believes that targeting low volatility, value, quality, and momentum will outperform pure market-cap indexing over time.

The research is mixed. Factor investing has academic backing, but factors can underperform for long stretches. If value stocks lag for a decade (as they did from 2010-2020), FEQT’s tilt will hurt relative to XEQT.

2. Cost: 0.20% vs 0.43%

This is a significant difference. Over a long investing horizon, the gap adds up:

FEQT needs to outperform XEQT by at least 0.23% annually just to break even on fees. That’s not guaranteed.

3. Bitcoin: Innovation or Unnecessary Risk?

FEQT’s ~2.4% Bitcoin allocation is unique among Canadian all-in-one ETFs. This is a polarizing feature:

The case for it: Bitcoin has been the best-performing asset class over the past decade. A small allocation adds diversification to an asset uncorrelated with traditional markets.

The case against it: Bitcoin is extremely volatile. A 2.4% allocation can swing your portfolio more than you’d expect. If you want Bitcoin, you should choose that allocation deliberately — not have it baked into your equity ETF.

Which ETF Should You Choose?

Choose XEQT if:

• You want the lowest-cost all-equity ETF
• You believe in pure passive indexing (let the market decide)
• You don’t want crypto exposure in your core portfolio
• You prefer the simplicity of market-cap-weighted indexing
• You want the longest track record and highest liquidity
• You value the “set it and forget it” approach

Choose FEQT if:

• You believe factor investing will outperform over the long term
• You want Bitcoin exposure included automatically
• You’re comfortable paying a higher MER for an active approach
• You want Fidelity’s research team making allocation decisions
• You understand that factor tilts may underperform for years before paying off

My Recommendation: XEQT Wins

XEQT is the better choice for most Canadian investors, and here’s why:

1. Lower cost: 0.20% vs 0.43% — you keep more of your returns
2. Simplicity: You get the whole market, no factor bets to second-guess
3. No surprise crypto: If you want Bitcoin, buy it separately on your own terms
4. Proven approach: Market-cap indexing has decades of evidence behind it
5. Better liquidity: Higher trading volume on the TSX vs FEQT on NEO

FEQT is an interesting product, and Fidelity deserves credit for trying something different. But the higher MER and active tilts add complexity and cost without guaranteed benefit. Factor investing is a valid strategy — but paying more than double the MER for factor exposure you could add yourself doesn’t make sense for most investors.

Keep it simple. Just buy XEQT.

How to Buy XEQT

Step 1: Open Your Account

Wealthsimple offers commission-free trading on XEQT.

Step 2: Fund Your Account

• Link your bank account
• Transfer funds (1-2 business days)
• Start with as little as $1

Step 3: Search and Buy

• Type “XEQT” in the search bar
• Enter the amount you want to invest
• Click “Buy” — that’s it!

Common Questions

“Is FEQT better because it has outperformed XEQT?”

FEQT’s factor tilts and Bitcoin allocation have contributed to strong short-term performance. But past performance doesn’t predict future results. Factor premiums are cyclical, and Bitcoin can crash 50%+ in a single year. Don’t chase recent returns.

“Can I own both XEQT and FEQT?”

You can, but it adds unnecessary complexity. You’d be partially overlapping on equity exposure while paying a blended MER higher than XEQT alone. Pick one approach and stick with it.

“What about FEQT’s zero management fee?”

FEQT’s direct management fee is technically $0, but that’s misleading. The underlying Fidelity ETFs charge fees that result in an effective MER of 0.43%. You’re still paying — it’s just structured differently.

“Should I switch from XEQT to FEQT?”

No. Switching triggers a taxable event (in non-registered accounts) and adds friction. Unless you have a strong conviction in factor investing AND want Bitcoin exposure, stay with XEQT.

Want to See How Your XEQT Investment Could Grow?

Use our XEQT Compound Interest Calculator to model different scenarios — including bearish, neutral, and bullish market outlooks.

Related Reading

• What is XEQT? A Comprehensive Guide
• XEQT vs ZEQT (BMO): Which All-Equity ETF Wins?
• VEQT vs XEQT: Which All-In-One ETF is Better?
• XEQT vs VGRO: Which ETF is Right for You?
• XEQT Holdings: What You Actually Own
• Get started with Wealthsimple and earn a $25 bonus

Disclosure: This post contains referral links. I may receive compensation if you sign up through these links, but this doesn’t affect my honest assessment. I genuinely believe XEQT is the better choice for most Canadian investors.