6 XEQT Alternatives for Different Life Stages (20s, 30s, 40s, 50s+)
One of the most common questions Canadian investors ask: “Is XEQT right for my age?”
The honest answer? XEQT works for almost everyone—but it’s not always the optimal choice for every life stage. Your 20s look very different from your 50s, and your investment strategy should reflect that.
This guide breaks down XEQT and its alternatives by decade, so you know exactly what to hold at every stage of life.
Quick Answer: Which ETF for Your Age?
- Ages 20-30: XEQT (100% stocks) — Perfect fit
- Ages 30-40: XEQT — Still ideal for most
- Ages 40-50: XEQT or XGRO (80/20) — Depends on risk tolerance
- Ages 50-60: XGRO or XBAL (60/40) — Start adding bonds
- Ages 60+: XBAL, XCON (40/60), or XINC — Prioritize stability
Spoiler: Most people under 50 should just buy XEQT.
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Claim Your $25 BonusThe ETF Lineup: XEQT and Its Alternatives
Before diving into age-specific recommendations, here’s what you’re choosing from:
Key insight: All these ETFs are from the same iShares family (except VEQT/VGRO from Vanguard). They share similar underlying holdings—the only difference is the stock-to-bond ratio.
Ages 20-30: Why XEQT is Perfect for You
Your 20s: The Golden Decade for Growth
Why XEQT is ideal:
- 35-45 years until retirement — You have decades to recover from any crash
- Maximum compound growth — 100% stocks outperforms over long periods
- Volatility is your friend — Market dips let you buy more shares cheap
- No need for bonds — Bonds drag down returns when you don't need stability
What a 25-year-old investing $500/month in XEQT could have at 65:
- At 7% average return: $1,200,000
- At 8% average return: $1,490,000
The 20-Something XEQT Strategy
- Open a TFSA first — Tax-free growth is incredibly powerful over 40 years
- Set up automatic contributions — $200, $500, whatever you can afford
- Ignore market crashes — Every crash in your 20s is a gift (cheap shares!)
- Don’t overthink it — Just buy XEQT consistently
The Biggest Mistake 20-Somethings Make
Being "too conservative" with their investments. Some 25-year-olds hold 40% bonds because they're scared of volatility. This costs them hundreds of thousands over 40 years. If you're young, embrace the volatility—it's the price of superior long-term returns.
Ages 30-40: Keep the XEQT Momentum Going
Your 30s: Still Plenty of Runway
Why XEQT is still ideal:
- 25-35 years until retirement — Plenty of time for recovery
- Peak earning years ahead — Maximize contributions now
- Compound growth still working hard — Don't dilute it with bonds yet
- Life changes don't change the math — Marriage, kids, mortgage? XEQT still works
Your 30s are about acceleration, not preservation.
Common 30-Something Questions
“I have a mortgage—should I be more conservative?”
No. Your investment timeline (25+ years) hasn’t changed. Keep XEQT in your TFSA/RRSP. Your mortgage is separate from your retirement investments.
“I have kids now—shouldn’t I play it safe?”
Your children actually strengthen the case for aggressive growth. You want maximum wealth when they need help with university or first homes.
“What if the market crashes when I’m 35?”
Then you buy more XEQT at a discount. A crash at 35 is a buying opportunity, not a disaster.
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Get Your $25 BonusAges 40-50: The Decision Point
Your 40s: When It Gets Personal
Your 40s are the first decade where your risk tolerance matters more than your age.
Scenario A: Stick with XEQT (100% stocks)
- You have 20-25 years until retirement
- You didn't panic during COVID or 2022
- You want maximum long-term growth
- You can handle 30-40% drops emotionally
Scenario B: Switch to XGRO (80/20)
- You have 15-20 years until retirement
- Market drops keep you up at night
- You want slightly smoother returns
- You'd rather sacrifice some upside for less downside
XEQT vs XGRO: The 40s Comparison
| Factor | XEQT (100/0) | XGRO (80/20) |
|---|---|---|
| Expected return | ~8% annually | ~6.5% annually |
| Maximum drop | -40% to -50% | -30% to -35% |
| Recovery time | 3-5 years | 2-3 years |
| 20-year projection ($500/mo) | ~$295,000 | ~$250,000 |
The difference over 20 years: ~$45,000
Is the smoother ride worth $45,000 to you? That’s a personal decision, not a mathematical one.
Ages 50-60: Time to Think About Transitions
Your 50s: Protecting What You've Built
Why the shift matters now:
- 10-15 years until retirement — Less time to recover from crashes
- Your portfolio is larger — A 40% drop hurts more when it's $500K vs $50K
- Sequence of returns risk — Bad returns early in retirement can devastate you
- Mental peace matters — You shouldn't be stressed about retirement at 55
Suggested transition path:
- Age 50-55: XGRO (80% stocks / 20% bonds)
- Age 55-60: Gradually shift to XBAL (60/40)
The 50s Glide Path
Here’s a practical transition strategy for your 50s:
| Age | Allocation | ETF Option |
|---|---|---|
| 50 | 80/20 | XGRO |
| 52 | 75/25 | 75% XGRO + 25% XBAL |
| 55 | 70/30 | 50% XGRO + 50% XBAL |
| 57 | 65/35 | 25% XGRO + 75% XBAL |
| 60 | 60/40 | XBAL |
Or keep it simple: Just switch from XGRO to XBAL at age 55-57.
The "Am I Too Old for XEQT?" Question
If you're 55 and asking this question, the answer is probably yes. You can hold XEQT at 55, but the risk-reward tradeoff no longer favors it. A 40% crash at 55 with 10 years to retirement is very different from a 40% crash at 25 with 40 years to retirement.
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Open Your AccountAges 60+: Stability and Income Focus
Your 60s and Beyond: Preservation Mode
Why XEQT is usually too aggressive:
- You can't afford a 40% crash — Not enough time to recover
- Sequence of returns risk is real — Bad early returns in retirement can devastate your portfolio
- Income matters more than growth — You need reliable withdrawals
- Sleep quality matters — Retirement should be enjoyed, not stressed over
ETF options for your 60s:
- XBAL (60/40): Still some growth, but significant bond cushion
- XCON (40/60): Conservative approach, prioritizes stability
- XINC (20/80): Maximum stability, income-focused
Choosing the Right Conservative ETF
| ETF | Stocks/Bonds | Annual Yield | Best For |
|---|---|---|---|
| XBAL | 60/40 | ~3.0% | Active early retirees (60-70) |
| XCON | 40/60 | ~3.5% | Mid-retirement (70-80) |
| XINC | 20/80 | ~4.0% | Late retirement (80+) or very conservative |
Sample Retirement Allocation by Age
| Age | XEQT | XBAL | XCON/XINC | Overall Stock % |
|---|---|---|---|---|
| 60 | 0% | 100% | 0% | 60% |
| 65 | 0% | 70% | 30% | 54% |
| 70 | 0% | 50% | 50% | 50% |
| 75 | 0% | 30% | 70% | 44% |
| 80+ | 0% | 0% | 100% | 40% or less |
The Real Question: Risk Tolerance vs Age
Here’s what most guides won’t tell you: your personality matters as much as your age.
The Risk Tolerance Test
Imagine your portfolio drops 40% next month. Which describes you?
A) “Great, stocks are on sale. Time to buy more.” → You can handle XEQT at almost any age (except very close to retirement)
B) “That’s concerning, but I won’t sell. I’ll wait it out.” → XGRO or XBAL depending on your timeline
C) “I’d be checking my portfolio daily and losing sleep.” → XBAL or more conservative, regardless of age
D) “I’d probably panic sell to stop the bleeding.” → XBAL, XCON, or consider GICs. Seriously.
The best investment is the one you’ll actually hold through the bad times.
A 30-year-old who panic sells XEQT during a crash is worse off than a 30-year-old who calmly holds XBAL. Knowing yourself matters.
The Most Important Realization
The Bottom Line: Most People Should Just Buy XEQT
After all this analysis, here's the honest truth:
- Under 40? XEQT is almost certainly right for you.
- 40-55? XEQT probably still works, but XGRO is a reasonable alternative.
- 55-65? Time to transition toward XBAL.
- 65+? XBAL or more conservative options make sense.
The "XEQT is too risky for me" crowd dramatically overestimates the risk of 100% stocks over 20+ year periods.
Historical Reality Check
Over any 20-year period in stock market history, a globally diversified portfolio like XEQT has never lost money. Never.
- 1929 crash? Recovered and grew.
- 1970s stagflation? Recovered and grew.
- 2008 financial crisis? Recovered and grew.
- 2020 COVID crash? Recovered in months.
The risk of XEQT isn’t that you’ll lose money over 20 years. It’s that you might panic sell during a temporary drop. That’s a behavior problem, not an investment problem.
Summary: Your Age-Based ETF Cheat Sheet
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Claim Your $25 BonusFrequently Asked Questions
“I’m 35 and nervous about 100% stocks. Should I add bonds?”
If you genuinely can’t handle the volatility, XGRO (80/20) is fine. But ask yourself: will you actually sell during a crash? If not, stick with XEQT. The “nervousness” often fades after your first crash-and-recovery cycle.
“Should I switch from XEQT to XGRO at exactly age 45?”
No. These are guidelines, not rules. A healthy, working 50-year-old who sleeps fine during crashes can absolutely hold XEQT. A nervous 38-year-old might be better in XGRO. Know yourself.
“Can I hold XEQT forever?”
Technically yes, but it’s suboptimal in retirement. The transition to bonds in your 50s-60s is about managing sequence-of-returns risk, not about the long-term performance of stocks.
“What about VEQT, VGRO, VBAL instead?”
They’re virtually identical to their iShares counterparts. VEQT ≈ XEQT, VGRO ≈ XGRO, VBAL ≈ XBAL. Choose based on brand preference. iShares ETFs have slightly lower MERs (0.20% vs 0.24%).
“I’m 60 and 100% in XEQT. Should I sell immediately?”
Don’t make sudden moves. Consider transitioning gradually over 1-2 years to XBAL. Selling everything at once could lock in losses if the market is down.
“What if I have a pension?”
A pension acts like a bond in your portfolio. If you have a solid pension, you can stay more aggressive with your investments since your “bond allocation” is built into your pension income.
Final Thoughts
The obsession with finding the “perfect” ETF for your age often causes more harm than good. Analysis paralysis keeps people from investing at all.
Here’s the real secret: The difference between XEQT and XGRO over 30 years matters far less than simply starting to invest consistently.
A 35-year-old who invests $500/month in “suboptimal” XGRO will retire wealthier than a 35-year-old who spends years researching and never pulls the trigger.
Pick an ETF that matches your decade, set up automatic contributions, and stop overthinking it.
That’s how wealth is built.
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Related Reading
- XEQT for Retirement: Complete Planning Guide
- XEQT vs XBAL: Which is Right for You?
- XGRO vs XEQT: The Complete Comparison
- Best All-in-One ETFs in Canada
- How Much Should You Invest in XEQT Monthly?
Disclosure: This page contains referral links. I may receive compensation if you sign up through these links. This doesn’t affect my recommendations—I genuinely believe these ETFs are excellent for most Canadian investors. Past performance doesn’t guarantee future results. Consider consulting a financial advisor for personalized advice.