Is XEQT the Only ETF You Need? The Complete Case for a One-Fund Portfolio in Canada

The question I get asked more than any other is some variation of: “Can I just buy XEQT and nothing else?”

It shows up in Reddit threads, in my DMs, and in almost every conversation I have with a new investor. And I get it. After spending hours researching ETFs, asset allocation, and portfolio construction, you want someone to tell you the simple truth.

So here it is: for most Canadian investors, XEQT alone is a perfectly complete portfolio.

But “most” is doing a lot of heavy lifting in that sentence. Whether XEQT is truly all you need depends on your time horizon, your account type, and how close you are to actually needing the money.

In this guide, I’ll lay out the full case for and against a one-fund portfolio, so you can make a confident decision instead of second-guessing yourself every time you open your brokerage app.

If you’re still getting familiar with the fund itself, start with my breakdown of what XEQT actually is and come back here when you’re ready.

What You Actually Get with XEQT Alone

Before we talk about whether one fund is “enough,” let’s be clear about what you own when you buy a single share of XEQT. This is not some narrow bet on one market or one sector. It’s a fund of funds managed by BlackRock’s iShares, and it holds four underlying ETFs that together give you:

• 12,000+ individual stocks across every major sector
• 49 countries spanning North America, Europe, Asia-Pacific, and emerging markets
• Automatic rebalancing back to target weights, handled by BlackRock at no extra cost to you
• 0.20% MER – roughly $2 per year on every $1,000 invested
• Exposure to the full global equity market in a single ticker traded on the TSX in Canadian dollars

Here’s how the allocation breaks down:

That is an extraordinary amount of diversification for one purchase. When people say XEQT is a “complete portfolio,” they mean it literally. You own a slice of virtually every publicly traded company on the planet.

For a closer look at exactly what’s inside, I wrote a detailed breakdown of XEQT’s holdings and what you actually own.

5 Scenarios Where XEQT Alone Is Absolutely Enough

Not everyone’s situation is the same, but there are clear profiles where a one-fund XEQT portfolio is not just acceptable – it’s optimal. If you see yourself in any of the following scenarios, you can stop overthinking.

5 Scenarios Where You Might Want Something Alongside XEQT

I genuinely believe XEQT is enough for the majority of Canadian investors. But I also believe in being honest about the situations where adding one more piece makes sense. Here are the five most common.

One-Fund vs Two-Fund vs Multi-Fund: How Do They Compare?

Here’s a straightforward comparison of the three most common approaches Canadian investors take.

The takeaway from this table should be clear: for the vast majority of investors, the one-fund approach wins on every dimension that matters. You give up a small amount of volatility control in exchange for a massive reduction in complexity, decision fatigue, and behavioral risk.

The two-fund approach is a sensible upgrade when you’re within 5-10 years of needing the money. And the multi-fund approach only starts making sense for very large portfolios where tax optimization justifies the added work.

The Simplicity Premium: Why Fewer Holdings = Better Results

This might be the most important section of this entire page, so I want to spend a moment on it.

There’s a well-documented phenomenon in investing research that I think of as the “simplicity premium.” It’s not a factor in the academic sense – it’s a behavioral reality. Investors with simpler portfolios earn better real-world returns than investors with complicated ones.

Here’s why:

People trade less

Every time you look at a multi-fund portfolio, you’re comparing performance between your holdings. “Why is this one lagging? Should I sell it and buy more of the winner?” These questions lead to unnecessary trades, which lead to worse outcomes. With one fund, there’s nothing to compare.

People stick with the plan

Vanguard’s research on the “Advisor’s Alpha” found that behavioral coaching – keeping investors from making emotional decisions – adds roughly 1-2% per year in returns. A simple portfolio is its own behavioral coach. When there’s only one thing to hold, “stay the course” is easy to follow.

People actually start investing

Analysis paralysis is real. I’ve heard from countless people who spent months researching the perfect 5-ETF portfolio and never actually opened an account. The person who buys XEQT on day one and invests consistently will almost always outperform the person who waits six months to build the “optimal” portfolio.

If that sounds like you, my guide on overcoming analysis paralysis might be exactly what you need.

People avoid performance chasing

When you own multiple funds, you inevitably notice that one of them is the “best performer” over the past year. The temptation to sell the underperformers and pile into the winner is strong – and it’s almost always wrong. Last year’s winner is frequently next year’s laggard. With one fund, this temptation doesn’t exist.

The simplicity premium is real, and it’s large. For most investors, the single best thing you can do for your portfolio is make it boring enough that you stop thinking about it.

How to Actually Implement a One-Fund XEQT Portfolio

Knowing that XEQT is enough is one thing. Actually setting it up is another. Here’s the step-by-step process using Wealthsimple, which is what I personally use and recommend for Canadians buying XEQT.

Step 1: Open a Wealthsimple Account

If you don’t already have one, sign up for Wealthsimple Trade. It’s free, there are no commissions on Canadian ETF trades, and you can hold TFSA, RRSP, FHSA, and non-registered accounts all in one place.

Step 2: Choose Your Account Type

For most people, the priority order is:

1. TFSA – max this out first (unless your employer matches RRSP contributions)
2. RRSP – especially valuable if you’re in a higher tax bracket
3. FHSA – if you’re saving for your first home
4. Non-registered – after all tax-sheltered room is used

Step 3: Fund Your Account

Transfer money from your bank. Wealthsimple supports one-time transfers and recurring deposits. I recommend setting up a recurring deposit that aligns with your pay schedule.

Step 4: Buy XEQT

Search for “XEQT” in the app, enter the amount you want to invest, and confirm the purchase. That’s it. Your entire portfolio is now globally diversified across 12,000+ stocks.

Step 5: Set Up Recurring Buys

This is the key to making a one-fund portfolio truly hands-off. Wealthsimple lets you set up automatic recurring purchases. Pick your amount, pick your frequency, and let it run.

For the full walkthrough with screenshots, check out my guide on how to automate XEQT purchases on Wealthsimple.

Step 6: Review Quarterly (Not Daily)

Set a calendar reminder to check your portfolio once per quarter. During each review, ask yourself two questions:

1. Has my time horizon changed?
2. Has my risk tolerance changed?

If the answer to both is no, change nothing. Close the app and go live your life.

My Personal Take: I’m 90%+ XEQT and Here’s Why

I want to be transparent about my own approach, because I think it’s useful context.

My portfolio is over 90% XEQT. I hold it in my TFSA and RRSP, and I buy more every month through automatic recurring purchases on Wealthsimple. I don’t try to time the market. I don’t check my portfolio daily. I’ve set up a system and I let it run.

Why not 100%? I keep a small cash reserve in a HISA ETF for short-term flexibility, and I have a modest allocation to a bond ETF in my RRSP as I start thinking about the longer arc of my investing life. But XEQT is the overwhelming core of everything I do.

Here’s what I’ve learned from this approach:

• I spend almost no time managing my investments. Maybe 30 minutes per quarter. The rest of my financial energy goes toward earning more, spending less, and enjoying life.
• I’ve never panic-sold. When markets dropped in 2022 and again during various 2024-2025 volatility events, I just kept buying. A one-fund portfolio makes this psychologically easy because there’s no “losing” fund to fixate on.
• I sleep well. I know that I own a piece of every major company in the world. I know the fees are low. I know the strategy is backed by decades of evidence. There’s nothing to worry about.

Am I leaving money on the table by not optimizing my tax strategy across accounts? Maybe a few hundred dollars a year. Am I leaving peace of mind on the table by keeping things complicated? Absolutely not.

For beginners just starting out with XEQT, this is the approach I recommend. Start simple. Build the habit. You can always add complexity later if your situation genuinely calls for it – but most people never need to.

Frequently Asked Questions

Is XEQT really enough for a complete portfolio?

Yes, for most Canadian investors with a long time horizon. XEQT holds 12,000+ stocks across 49 countries, covering every major sector and geography. It’s automatically rebalanced by BlackRock and charges just 0.20% per year. The only thing it doesn’t include is bonds, which long-term investors don’t necessarily need. If you want more detail, read my full breakdown of what is XEQT.

What about bonds? Shouldn’t I own some?

It depends on your time horizon and risk tolerance. If you’re more than 10 years from needing the money, 100% equities (XEQT alone) has historically delivered the best returns. If you’re within 5-10 years of retirement or you know you’d panic-sell during a 30% drop, adding bonds makes sense. I cover this in depth in my XEQT vs bond ETFs comparison and my guide to building a two-ETF portfolio.

Won’t I miss out on returns by not picking individual stocks?

Almost certainly not. The data is overwhelming: over any 15-year period, roughly 85-90% of professional fund managers fail to beat a simple index fund after fees. Individual stock pickers do even worse on average. XEQT gives you the market return, which beats most active strategies over time. The few people who do beat the market consistently are almost impossible to identify in advance.

Should I hold XEQT in my TFSA or RRSP?

Either works well. If you’re choosing one account to start, the TFSA is usually the best first choice for most Canadians because of its flexibility – you can withdraw anytime without tax consequences and you get the contribution room back the following year. For the full comparison, read my guide on XEQT in your TFSA vs RRSP.

How much money do I need to start investing in XEQT?

You can buy fractional shares on Wealthsimple, which means you can start with as little as $1. There’s no minimum portfolio size where XEQT “makes sense.” Whether you’re investing $50 per month or $5,000 per month, the same one-fund strategy applies. Starting early and investing consistently matters far more than starting with a large amount.

What if I already own VEQT, XGRO, or other ETFs? Should I switch to XEQT?

Not necessarily. VEQT is extremely similar to XEQT – they’re both 100% global equity all-in-one ETFs with nearly identical holdings and costs. Switching from VEQT to XEQT would gain you almost nothing. XGRO includes 20% bonds, so it’s a slightly different risk profile. If you’re happy with your current fund and it aligns with your goals, there’s no urgency to switch. The one-fund principle applies to any well-diversified all-in-one ETF, not just XEQT specifically.

The Bottom Line

The investing industry makes money by convincing you that things are complicated. That you need more products, more accounts, more strategies, more optimization. And for a small number of investors with very large portfolios and complex tax situations, some of that complexity is justified.

But for the typical Canadian investor – someone in their 20s, 30s, or 40s, contributing regularly to a TFSA or RRSP, with a decade or more before they need the money – XEQT alone is genuinely all you need.

One fund. One account. Automatic contributions. Quarterly check-ins. That’s the whole plan.

It’s not sexy. It won’t make for exciting conversation at dinner parties. But it works, and the evidence says it works better than almost anything more complicated.

The best portfolio isn’t the one with the most holdings. It’s the one you’ll actually stick with for 20 years. For most people, that’s XEQT.