XEQT vs HEQT: Side-by-Side Comparison

A couple of years ago, a buddy at work cornered me in the break room. He had just discovered HGRO and was buzzing about it. “It’s like XEQT,” he said, “but it used to pay zero distributions. Zero! No tax drag at all.” He looked at me like he had just found the cheat code to investing. I told him to slow down, because the story behind HGRO is a lot more complicated than that – and a lot has changed since those “zero distribution” glory days.

That conversation stuck with me, because HGRO is genuinely one of the more interesting ETFs in Canada. It took a radically different approach to building an all-equity portfolio, and for a brief period, it really did offer a meaningful tax advantage. But the landscape has shifted. The provider rebranded. The swap structure got dismantled. And today, HEQT is a very different product than the one that originally generated all that hype.

So let’s break it down: XEQT vs HEQT – what is each ETF actually doing, where do they differ, and which one should you buy in 2026?

A note on the name: the ticker HGRO no longer exists. In August 2023, Horizons renamed this fund the All-Equity Asset Allocation ETF and changed its ticker from HGRO to HEQT; in May 2024 the Horizons brand became Global X. It is the same fund lineage, but today’s HEQT is a different product from the old swap-based HGRO – it holds physical ETFs, hedges its foreign-currency exposure to the Canadian dollar, and pays monthly distributions. This page compares XEQT with that fund as it exists today, under its current ticker HEQT (formerly HGRO).

1. What Is XEQT?

If you have been reading this blog, you already know the answer. XEQT (iShares Core Equity ETF Portfolio) is BlackRock Canada’s flagship all-equity ETF. It launched in 2019 and has since become the default recommendation for Canadian investors who want simple, global, 100% equity exposure in a single ticker.

XEQT holds five underlying iShares index ETFs that together give you exposure to about 8,300 stocks across every major market on earth:

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

It tracks market-cap-weighted indexes, charges a 0.19% MER, and does exactly what it says on the tin. No factor tilts, no swaps, no gimmicks. You buy XEQT, you own the global stock market.

With about $24.6 billion in AUM (BlackRock, November 11, 2026), XEQT is one of Canada’s largest all-equity ETFs.

2. What Is HEQT (formerly HGRO)?

HEQT (Global X All-Equity Asset Allocation ETF, formerly HGRO) is the all-equity entry in Global X Canada’s asset allocation ETF lineup. If the name “Global X” doesn’t ring a bell, you probably remember the old name: Horizons ETFs.

HEQT began operations in September 2019 under the Horizons brand (as the Horizons Growth TRI ETF Portfolio, ticker HGRO) and was designed to compete directly with products like XEQT and VEQT. Like those ETFs, HEQT aims to deliver 100% global equity exposure in a single purchase.

HEQT Geographic Allocation

Target allocations as at September 30, 2026 (Global X):

• US Equity: 47%
• Canadian Equity: 20%
• International Developed: 25%
• Emerging Markets: 8%

You will notice the allocation is broadly similar to XEQT, though HEQT tilts slightly more toward the US and emerging markets and slightly less toward Canada. Whether that matters to you depends on how bullish you are on Canadian equities relative to the US and emerging markets.

HEQT’s Underlying ETFs

HEQT uses Global X’s own suite of underlying ETFs to build its portfolio. As at October 30, 2026, these are USSX (S&P 500, 34.31%), EAFX (MSCI EAFE, 24.70%), CNDX (S&P/TSX 60, 21.05%), EMMX (MSCI Emerging Markets, 8.16%), QQQX (Nasdaq-100, 7.22%) and RSSX (Russell 2000, 4.37%). This is an important detail, because the underlying ETFs historically used a swap-based structure rather than physically holding stocks – more on that in a moment.

3. The Big Story: HGRO Becomes HEQT, Horizons Becomes Global X

Before we compare performance and fees, we need to talk about the elephant in the room: the rename and restructure.

On August 25, 2023, Horizons renamed the Horizons Growth TRI ETF Portfolio to the Horizons All-Equity Asset Allocation ETF and changed its ticker from HGRO to HEQT. The same change overhauled the fund’s investment objective, investment strategy, fee structure, currency hedging and distribution policy – the old total-return swap structure was replaced with physical holdings, and the fund started paying distributions.

Then, on May 1, 2024, the entire Horizons lineup was rebranded to Global X. Same ETFs, same tickers – but a different brand name on the door, under parent company Mirae Asset Global Investments.

For HEQT holders, this raised some questions:

• Does the change affect the fund? Yes, in a real way. The August 2023 restructure changed what the fund holds, how it is hedged, what it charges and what it pays out. The May 2024 rebrand, by contrast, changed only the name.
• Is Global X trustworthy? Global X is a large global ETF provider with operations in the US, Korea, Japan, Brazil, and elsewhere. This is not some fly-by-night operation.
• Should I worry? Not really. But it is worth acknowledging that HEQT went from being managed by a well-known Canadian ETF boutique (Horizons) to being a subsidiary of a large South Korean asset manager. Some Canadian investors feel more comfortable with BlackRock, Vanguard, or BMO – names they have known for decades.

The rebrand itself is not a reason to avoid HEQT. But it is context you should have.

4. The Swap Structure: What Made HGRO Different (and What Changed)

This is the part of the HGRO story that gets people excited – and confused.

How Swaps Worked

When Horizons originally launched its index ETFs (including the ones underlying HGRO), many of them used a total return swap structure instead of physically buying stocks. Here is the simplified version:

Instead of HGRO’s underlying ETFs buying and holding thousands of individual stocks, they entered into a contract (a “swap”) with a counterparty (typically a big Canadian bank). The bank agreed to deliver the total return of the index – including dividends – in exchange for a fee. The ETF held collateral (usually government bonds) instead of stocks.

Why did this matter? Because in a swap structure, the ETF does not actually receive dividends. No dividends means no taxable distributions to unitholders. For investors holding these ETFs in taxable (non-registered) accounts, this was a legitimate tax advantage. You got the full return of the index with the taxes deferred until you sold.

Why It Changed

In August 2023, Horizons restructured the fund: the swap-based approach was wound up, the fund was renamed HEQT, and its underlying ETFs were converted to physical replication – meaning they now hold actual stocks, just like XEQT’s underlying ETFs do.

What This Means for HEQT Today

The tax advantage is gone. HEQT’s underlying ETFs now physically hold stocks and distribute income monthly, just like any other index ETF. If you were considering HEQT specifically because of the old swap-based tax benefit, that ship has sailed.

HEQT today is essentially a standard physically-replicated all-equity ETF, similar in structure to XEQT, VEQT, or ZEQT – with one difference: unlike XEQT, HEQT hedges its foreign-currency exposure to the Canadian dollar.

5. Head-to-Head Comparison: XEQT vs HEQT

Let’s put them side by side.

Feature	XEQT (iShares)	HEQT (Global X, formerly HGRO)
Ticker	XEQT.TO	HEQT.TO
Provider	iShares (BlackRock)	Global X (Mirae Asset)
Launch Date	August 2019	September 2019
MER	0.19%	0.20%
AUM	~$24.6B	~$426M
Equity Allocation	100%	100%
US Equity	~45%	47%
Canadian Equity	~25%	20%
International Developed	~25%	25%
Emerging Markets	~5%	8%
Replication Method	Physical	Physical (formerly swap-based)
Currency Hedging	No	Yes (hedged to CAD)
Distribution Frequency	Quarterly	Monthly
Exchange	TSX	TSX

The headline numbers look almost identical. Nearly the same MER. Same broad strategy. Both on the TSX. So what actually separates them?

6. Where XEQT Beats HEQT

Liquidity and AUM

This is the single biggest advantage XEQT has, and it is not close. With about $24.6 billion in AUM against HEQT’s roughly $426 million, XEQT is roughly 58x the size of HEQT. That translates to:

• Tighter bid-ask spreads: You lose less to the spread every time you buy or sell.
• Higher daily trading volume: You can move larger amounts without impacting the price.
• Lower risk of ETF closure: An ETF with $24.6B in assets is not going anywhere. An ETF with $426M is very likely fine too, but the margin of safety is objectively larger with XEQT.

For investors making regular contributions through dollar-cost averaging, the spread difference is small on any individual trade. But over decades of buying and eventually selling, tighter spreads add up.

Track Record

XEQT launched in August 2019, about five weeks before HEQT (September 2019), so the two funds have near-identical track records. XEQT has been through the same market environments, including the COVID crash recovery in 2020.

Provider Reputation

BlackRock is the largest asset manager in the world, with over $15 trillion in global AUM (US$15.3 trillion at June 30, 2026). iShares is the most recognized ETF brand on the planet. When you buy XEQT, you are buying a product from a company whose entire business model depends on running index ETFs well.

Global X (Mirae Asset) is a legitimate global player, but it does not have the same brand recognition or trust with Canadian retail investors. The Horizons-to-Global X rebrand added a layer of unfamiliarity. Some investors care about this; others do not. But if “brand trust” is a factor for you, XEQT wins.

Geographic Allocation

On the regional split, the two funds are now very close: both hold 25% in international developed markets. The differences are that HEQT holds less Canada (20% vs XEQT’s ~25%) and more US (47% vs ~45%) and emerging markets (8% vs ~5%). So HEQT actually has slightly less home bias than XEQT – the allocation split is not a reason to pick XEQT over HEQT. XEQT’s edge is size, liquidity and provider, not the map.

Underlying ETF Quality

XEQT’s underlying holdings are massive, well-established iShares ETFs that track MSCI indexes with extremely tight tracking error. The underlying funds in HEQT are Global X’s own products, which are solid but generally smaller and less liquid than the iShares equivalents.

7. Where HEQT Might Have an Edge

In the spirit of fairness, HEQT is not without its merits.

Nearly Identical MER

HEQT charges a 0.20% MER, just 0.01% above XEQT’s 0.19% – about $1 a year on every $10,000 invested. That is still an excellent MER for an all-in-one ETF.

A Bigger US and Emerging-Markets Tilt

If you are bullish on the US market, or on emerging markets – perhaps you believe US large caps or emerging economies will outperform over the coming decade – HEQT’s 47% US and 8% emerging-markets allocations might appeal to you more than XEQT’s ~45% and ~5%. This is a preference, not an objective advantage, but it is a difference worth noting.

Currency Hedging

Unlike XEQT, HEQT hedges its foreign-currency exposure to the Canadian dollar. If you would rather not have your returns pushed around by the loonie’s moves against the US dollar and other currencies, that hedging is a genuine structural difference in HEQT’s favour. The trade-off is that hedging also removes the cushion a falling loonie gives unhedged funds when foreign markets drop.

Tax-Loss Harvesting Partner

Here is a practical advantage that does not get enough attention. If you own XEQT and your position is sitting at a loss, you cannot sell XEQT and immediately buy it back (that would be a superficial loss). But you can sell XEQT and buy HEQT (or vice versa), since they are not considered “substantially identical” for CRA purposes, despite being very similar products.

Having HEQT as a tax-loss harvesting partner for XEQT is genuinely useful in taxable accounts. This is the same dynamic we discussed in XEQT vs ZEQT – having multiple similar-but-not-identical ETFs gives you flexibility.

A Different Provider for Diversification

Some investors like to spread their assets across multiple providers. If your entire portfolio is in iShares products, adding HEQT gives you exposure to a different ETF issuer. This is more of a psychological comfort than a real risk reduction (your assets are held by a custodian regardless), but some people sleep better knowing they are not all-in on one brand.

8. Performance: How Do They Actually Compare?

HEQT’s own calendar-year returns, as published by Global X, are: +22.31% in 2021, -19.20% in 2022, +22.64% in 2023, +24.09% in 2024 and +19.62% in 2025. That is a wide range of yearly outcomes – a 19.20% loss in 2022 followed by gains above 22% in both 2021 and 2023 – which fits a fund carrying Nasdaq-100 and small-cap sleeves on top of its core holdings and hedging its currency exposure, rather than a fund that hugs a plain market-cap global index.

A year-by-year XEQT comparison table used to sit here, but its figures could not be verified against BlackRock’s published performance, so it has been removed rather than left standing with wrong numbers. The old conclusion that the two funds are “essentially a wash” on performance is withdrawn: the verified HEQT figures alone show multi-point yearly swings, and no like-for-like comparison should be drawn until XEQT’s calendar-year returns are confirmed from iShares’ own documents.

Bottom line on performance: Do not choose between these two based on past returns. HEQT’s record shows its yearly results can diverge sharply from a plain global-equity portfolio, and past returns do not predict future ones.

9. Tax Efficiency in 2026: No Longer a Differentiator

This deserves its own section because it was historically the main reason people considered HGRO.

In the swap era (pre-2023): HGRO’s underlying ETFs did not distribute dividends, making them extremely tax-efficient in non-registered accounts. You could hold HGRO in a taxable account and defer essentially all of the tax until you sold. This was a legitimate, meaningful advantage.

After the conversion to physical replication: HEQT now distributes income monthly, just like any other index ETF. The tax treatment is effectively identical to XEQT’s. Both ETFs will generate:

• Canadian dividend income (eligible for the dividend tax credit)
• Foreign dividend income (taxed at your marginal rate)
• Capital gains (when you eventually sell)

If you currently hold HEQT in a taxable account specifically for the old tax benefit, you should be aware that the benefit no longer exists. That said, there is no reason to sell HEQT just because of this change – it is still a perfectly fine ETF. Selling would trigger a taxable event, which is counterproductive.

10. Which Account Should You Hold Them In?

Both XEQT and HEQT work well in any registered account:

• TFSA: Tax-free growth. No difference between XEQT and HEQT.
• RRSP: Tax-deferred growth. Both are treated identically.
• FHSA: Same as TFSA – fully sheltered.
• Non-registered (taxable): Now that HEQT uses physical replication, both ETFs have similar tax characteristics. Neither has a meaningful tax advantage over the other.

For a deeper dive on the TFSA vs RRSP question specifically, check out our guide on XEQT in TFSA vs RRSP.

11. Common Questions About XEQT vs HEQT

“Is HEQT still tax-efficient?”

No more than any other physically-replicated equity ETF. The swap-based tax advantage ended when Global X converted to physical replication. HEQT is now taxed the same way as XEQT.

“Should I switch from HEQT to XEQT?”

If you are in a registered account (TFSA, RRSP, FHSA), switching costs you nothing but the bid-ask spread. It is a reasonable move if you want the liquidity and AUM advantages of XEQT.

If you are in a taxable account, selling HEQT triggers capital gains tax. Unless your HEQT position is at a loss (in which case you could harvest the loss and buy XEQT), it is usually better to just hold HEQT and direct new contributions toward XEQT.

“Can I own both XEQT and HEQT?”

You can, but there is significant overlap. You would essentially be doubling up on global equity exposure with slightly different allocations. The only practical reason to own both is for tax-loss harvesting purposes.

“What happened to the Horizons brand?”

Horizons ETFs was rebranded to Global X on May 1, 2024. The fund itself had already been renamed from HGRO to HEQT on August 25, 2023, when its structure was overhauled. The ETFs themselves (tickers, strategies, holdings) remained the same through the rebrand itself. It was a corporate ownership change, not a product change.

“Is Global X going to shut down HEQT?”

Very unlikely. HEQT has approximately $426M in AUM, which is more than enough to be profitable for the provider.

12. My Verdict: XEQT Is the Better Pick for Most Canadians

Look, I will give HEQT credit where it is due. It was a genuinely innovative product when it launched. The swap-based structure was clever, the MER is competitive, and it has delivered returns in line with XEQT. If you already own HEQT and are happy with it, there is no urgent need to change.

But if you are choosing between these two today – putting fresh money to work in 2026 – XEQT is the better choice, and here is why:

1. Massively more liquid: ~$24.6B in AUM vs ~$426M. Tighter spreads, higher volume, more confidence the ETF will be around for decades.
2. BlackRock’s track record: The world’s largest asset manager, running the world’s largest ETF brand. They know how to do this.
3. Slightly cheaper: XEQT charges 0.19% vs HEQT’s 0.20% – about $1 a year less per $10,000 invested.
4. Simpler history: XEQT has always been a straightforward, physically-replicated index ETF. No swap conversions, no rebrands, no structural changes to explain.
5. Ecosystem: If you are already reading analysis on XEQT, comparing it to alternatives like FEQT or ZEQT, there is simply more community knowledge and resources around XEQT.

The old argument for HGRO – “but the tax efficiency!” – no longer applies. Without that differentiator, HEQT is a slightly smaller, slightly less liquid version of essentially the same product. There is nothing wrong with it. But when the costs are nearly identical, you go with the bigger, more established option.

Keep it simple. Buy XEQT.

How to Get Started with XEQT

The easiest way to start building your XEQT portfolio is through Wealthsimple, which lets you buy and sell XEQT with zero commissions.

Step 1: Open Your Account

Sign up for a Wealthsimple account. You can open a TFSA, RRSP, FHSA, or non-registered account in minutes.

Step 2: Fund Your Account

Link your bank account and transfer funds. It typically takes 1-2 business days for the money to arrive.

Step 3: Buy XEQT

Search for “XEQT,” enter the amount you want to invest, and hit Buy. Set up automatic deposits and you are on your way to building long-term wealth.

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Related Reading

• What is XEQT? A Comprehensive Guide
• XEQT vs FEQT (Fidelity): Which All-Equity ETF is Right for You?
• XEQT vs ZEQT (BMO): Which All-Equity ETF Wins?
• VEQT vs XEQT: Which All-In-One ETF is Better?
• Best Platform to Buy XEQT in Canada
• Get started with Wealthsimple and earn a $25 bonus

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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.