XEQT vs VEQT vs ZEQT: Which All-Equity ETF Is Best for Canadian Investors?

I spent an embarrassing amount of time stuck on this decision.

I had done the research. I knew I wanted a 100% equity, all-in-one ETF in my TFSA. I understood what XEQT actually is, I had read half a dozen Reddit threads, and I had three browser tabs open comparing fund facts sheets. XEQT, VEQT, or ZEQT. Three nearly identical ETFs. Three different providers. Three different ticker symbols that all end in “EQT.” And there I was, paralyzed by a decision that – spoiler alert – barely matters.

If that sounds like you right now, take a deep breath. You are in the right place. In this guide, I am going to put XEQT, VEQT, and ZEQT side by side and walk you through every meaningful difference between Canada’s three most popular all-equity ETFs. By the end, you will have a clear answer – and more importantly, you will understand why picking any of these three is far better than sitting on the sidelines waiting for the “perfect” choice.

1. The Quick Comparison: XEQT vs VEQT vs ZEQT at a Glance

Before we dive into the details, here is a high-level snapshot of all three funds.

As you can see, these three ETFs are remarkably similar. They all give you 100% equity exposure to global markets through a single purchase. The differences are real but relatively minor – which is exactly why this decision trips so many people up.

Let me break down each fund individually before we compare them head-to-head.

2. XEQT: The iShares/BlackRock Contender

XEQT is the iShares Core Equity ETF Portfolio, managed by the world’s largest asset manager, BlackRock. It has become arguably the most popular all-equity ETF in Canada, and for good reason.

XEQT holds four underlying iShares ETFs that together give you exposure to roughly 12,000 stocks across the globe. Its geographic allocation leans slightly more toward the US and international markets compared to VEQT, with a lower allocation to Canadian stocks. For investors who believe in maximizing global diversification and reducing home-country bias, this is appealing.

What makes XEQT stand out:

• Lowest tier MER at 0.20% – tied with ZEQT, 4 basis points cheaper than VEQT
• Largest AUM among the three – roughly $12 billion, which means strong liquidity and tight bid-ask spreads
• Longest meaningful track record alongside VEQT – both launched in early 2019, giving us over seven years of performance data
• BlackRock’s scale – as the world’s largest asset manager, BlackRock can often negotiate lower costs on underlying holdings
• Lower Canadian allocation (~24%) – if you already own Canadian real estate or work for a Canadian employer, less home-country concentration might be a good thing

If you want a deeper dive into exactly what XEQT holds, check out our complete XEQT holdings breakdown.

3. VEQT: The Vanguard Favourite

VEQT is the Vanguard All-Equity ETF Portfolio, and it carries the halo of the Vanguard brand – a company literally founded on the principle of low-cost index investing. Jack Bogle, Vanguard’s founder, is practically the patron saint of passive investing, and VEQT loyalists tend to be fiercely loyal for exactly that reason.

Like XEQT, VEQT holds four underlying ETFs that collectively provide exposure to around 13,000 stocks. The extra holdings come primarily from Vanguard’s broader inclusion of smaller companies in some of its underlying indexes.

What makes VEQT stand out:

• Broadest holdings count (~13,000+) – slightly more diversified at the individual stock level than XEQT or ZEQT
• Vanguard brand and philosophy – the company is literally owned by its fund holders, which aligns incentives toward lower costs over time
• Higher Canadian allocation (~30%) – some investors prefer more domestic exposure for currency stability and dividend tax credit eligibility
• Massive AUM (~$10B+) – nearly as liquid as XEQT, so trading costs are minimal

The main downside: VEQT’s MER of 0.24% is the highest of the three. That is a difference of 0.04% – or $4 per year on a $10,000 investment. Not life-changing, but it does add up over decades, especially on larger portfolios.

For a deep head-to-head, see our detailed XEQT vs VEQT comparison.

4. ZEQT: The BMO Newcomer

ZEQT is BMO’s All-Equity ETF, and it is the youngest of the three. BMO launched it in February 2022, arriving three years after XEQT and VEQT and clearly designed to compete directly with both.

ZEQT uses five underlying BMO ETFs (one more than its competitors) to build a global equity portfolio of roughly 12,000 stocks. Its geographic allocation falls between XEQT and VEQT, making it a sensible middle ground for investors who do not have a strong preference either way.

What makes ZEQT stand out:

• Tied for lowest MER at 0.20% – matches XEQT, undercuts VEQT
• Five underlying ETFs – the extra fund gives BMO slightly more flexibility in constructing the portfolio
• BMO banking ecosystem – if you already bank with BMO, holding ZEQT in a BMO InvestorLine account keeps everything under one roof (though I still think Wealthsimple is the better platform for most people)
• Slightly higher emerging markets allocation (~8%) – if you want a touch more exposure to developing economies, ZEQT delivers that

The main downside: ZEQT launched in February 2022, which means it has a much shorter track record than XEQT or VEQT. It also has significantly lower AUM (~$2 billion versus $10-12 billion for the others), which means slightly wider bid-ask spreads in some situations. Neither of these is a dealbreaker, but they are worth noting.

For the full comparison, see our XEQT vs ZEQT deep dive.

5. Deep Comparison: The 6 Dimensions That Actually Matter

Now that you know each fund individually, let me compare them across the dimensions that Canadian investors care about most.

5.1 MER and Total Cost of Ownership

XEQT and ZEQT tie at 0.20%, while VEQT costs 0.04% more at 0.24%. On a $100,000 portfolio, that is an extra $40 per year with VEQT. Over 25 years with compounding, the difference becomes more noticeable – potentially a few thousand dollars on a large portfolio.

But MER is not the whole story. Total cost of ownership also includes trading costs (bid-ask spreads) and tracking error (how closely the fund follows its benchmark). XEQT’s larger AUM generally means tighter spreads and lower trading costs, giving it a slight edge in total cost of ownership.

Winner: XEQT (by a whisker over ZEQT, mainly due to superior liquidity)

5.2 Geographic Allocation

This is where the three ETFs differ most visibly.

The most significant difference is VEQT’s heavier Canadian allocation at ~30%, compared to ~24-25% for XEQT and ZEQT. This matters because:

• Canada represents only about 3% of global market capitalization. All three funds overweight Canada relative to its global weight, but VEQT does so the most. This is called “home-country bias.”
• If you already have significant Canadian exposure through your job, real estate, or other investments, a lower Canadian allocation (like XEQT’s) provides better overall diversification.
• On the other hand, Canadian dividends receive preferential tax treatment in non-registered accounts through the dividend tax credit, so a higher Canadian allocation can be tax-advantageous in some situations.

XEQT and ZEQT give you more US exposure (~46-47% vs ~43%), which means more weight in the world’s largest and most dynamic stock market. Whether that is “better” depends on your existing portfolio and your views on Canadian vs. global markets – but historically, higher US exposure has benefited returns over the past decade.

Winner: Depends on your preference. XEQT for more global tilting, VEQT if you want more Canadian exposure.

5.3 Holdings Count and Diversification

VEQT holds the most individual stocks, primarily because Vanguard’s underlying total-market ETFs tend to include more small-cap companies. In theory, more holdings means broader diversification. In practice, once you are past a few thousand stocks, adding more makes virtually no measurable difference to your risk or return profile. The 1,000-stock difference between VEQT and the other two is statistically negligible.

All three funds give you exposure to companies across 40+ countries and virtually every sector of the global economy. You own a slice of Apple, a slice of the Royal Bank of Canada, a slice of Toyota, and a slice of Tata Consultancy Services. Whether that slice is spread across 12,000 or 13,000 companies is a distinction without a meaningful difference.

Winner: Tie. All three are exceptionally well-diversified.

5.4 Historical Performance

Here is where things get tricky. XEQT and VEQT both launched in early 2019, giving us over seven years of data. ZEQT launched in February 2022, so we have about four years of performance history – and those four years happened to include a sharp drawdown in 2022 followed by a strong recovery.

Since inception (through early 2026), approximate annualized returns:

XEQT has had a slight performance edge over VEQT, largely attributable to two factors: its lower MER (0.04% adds up) and its higher US allocation during a period when US markets outperformed. ZEQT’s returns look similar to XEQT’s, but the shorter time frame makes direct comparisons less reliable.

Important caveat: Past performance does not predict future results. The US market’s outperformance over the past decade is not guaranteed to continue. If international or Canadian markets take the lead in the next decade, VEQT’s allocation could prove advantageous. Nobody knows.

Winner: XEQT (slight edge, but the margin is narrow and time-period dependent)

5.5 Tax Efficiency

For investments held in registered accounts (TFSA, RRSP, FHSA, RESP), tax efficiency differences between these three ETFs are essentially zero. The ETF structure, withholding tax treatment, and distribution patterns are all very similar.

In a non-registered (taxable) account, there are a few nuances:

• All three ETFs are structured as Canadian-domiciled funds-of-funds, meaning they experience one layer of foreign withholding tax on US dividends that cannot be recovered
• VEQT’s higher Canadian allocation means a slightly larger portion of its distributions qualifies for the Canadian dividend tax credit, which can be advantageous in a non-registered account
• Distribution yields are roughly comparable across all three, typically in the 1.5-2.5% range annually

For the vast majority of Canadian investors – especially those investing primarily in TFSAs and RRSPs – tax efficiency should not be a deciding factor between these three ETFs. If you are investing significant amounts in a non-registered account and want to optimize for tax efficiency, VEQT’s higher Canadian allocation offers a marginal advantage, but the difference is small.

Winner: Roughly a tie. VEQT has a marginal edge in taxable accounts, but it is negligible for most investors.

5.6 Liquidity and Trading Volume

Liquidity matters because it affects the bid-ask spread – the difference between the price buyers are willing to pay and the price sellers are asking. Wider spreads mean higher trading costs for you.

XEQT and VEQT are among the most heavily traded ETFs on the Toronto Stock Exchange. Their bid-ask spreads are typically just one cent, meaning you lose essentially nothing when buying or selling. ZEQT is also quite liquid, but its lower AUM means spreads can occasionally widen to two cents, especially in volatile markets or during off-hours trading.

For most retail investors buying a few hundred or few thousand dollars at a time, this difference is meaningless. If you are making large purchases ($50,000+) or trading frequently, XEQT’s superior liquidity becomes more relevant.

Winner: XEQT (by a small margin due to highest AUM and tightest spreads)

6. So Which One Should YOU Choose?

After all that analysis, you might be hoping for a definitive, punch-you-in-the-face answer. The truth is that the “best” choice depends on what matters most to you. Here is a simple decision framework:

Choose XEQT if:

• You want the lowest total cost of ownership (low MER + excellent liquidity)
• You prefer slightly more US and international exposure and less Canadian home bias
• You want the largest, most liquid fund with the tightest bid-ask spreads
• You like the security of BlackRock, the world’s biggest asset manager, behind your ETF
• You are a beginner looking for the simplest starting point

Choose VEQT if:

• You are a Vanguard loyalist and the brand matters to you
• You prefer more Canadian exposure (~30% vs ~24%)
• You want the broadest possible holdings count for maximum diversification
• You are investing primarily in a non-registered account and value the slightly higher Canadian dividend tax credit eligibility
• The 0.04% MER premium does not bother you

Choose ZEQT if:

• You already bank with BMO and want to keep everything in one ecosystem
• You want a low MER (tied with XEQT at 0.20%) with a slightly different geographic mix
• You prefer a slightly higher emerging markets allocation
• You are comfortable with a shorter track record
• You are already holding other BMO ETFs and want consistency across providers

Or just pick one and start investing

Honestly? If you have been going back and forth between these three for more than a day or two, you are overthinking it. The cost of waiting to invest while you agonize over a 0.04% MER difference or a 3% allocation variation dwarfs whatever marginal advantage one ETF has over another. I have seen this analysis paralysis prevent people from investing for months, and every week on the sidelines costs them more than any difference between these funds ever could.

7. Why the Differences Barely Matter

I want to be very direct about something: the performance difference between XEQT, VEQT, and ZEQT over a 25-year investing horizon will almost certainly be tiny. We are talking about three ETFs that:

• Hold 12,000-13,000 stocks across 40+ countries
• Charge between 0.20% and 0.24% in fees
• Have nearly identical geographic allocations (within a few percentage points)
• All automatically rebalance for you
• All trade commission-free on platforms like Wealthsimple

Think about it this way. If you invest $500 per month for 25 years and earn an average annual return of 8%, you will end up with roughly $475,000. Whether that number is $473,000 or $477,000 because you picked VEQT instead of XEQT is completely irrelevant in the context of your financial life.

What actually matters is:

1. Your savings rate. Investing $600 per month instead of $500 will do infinitely more for your future wealth than choosing the “optimal” ETF.
2. Staying invested. The single biggest risk is not choosing the wrong ETF – it is selling during a market crash. If XEQT drops 35% in a bear market, VEQT and ZEQT will also drop roughly 35%. Your choice of fund will not protect you from that. Your behaviour will.
3. Time in the market. Starting today with any of these three beats waiting six months for the “perfect” entry point with the “perfect” ETF.
4. Tax-advantaged accounts. Whether you are using a TFSA, RRSP, or FHSA, making sure you are maximizing your registered account room matters far more than which ticker you buy inside those accounts.

I genuinely believe that most of the blog posts, Reddit threads, and YouTube videos (including this very article) comparing these three ETFs are solving a problem that does not exist. The real problem is not “which all-equity ETF should I buy.” The real problem is “why have I not started investing yet.”

8. My Personal Recommendation

After all the analysis, I lean toward XEQT as the best choice for most Canadian investors. Here is my reasoning:

1. Lowest total cost of ownership. XEQT ties ZEQT on MER (0.20%) but has significantly better liquidity, which means lower trading costs.
2. Optimal geographic allocation. XEQT’s lower Canadian allocation reduces home-country bias without eliminating domestic exposure entirely. Given that most Canadians already have heavy Canadian exposure through their employment, pensions, and real estate, less is more when it comes to Canadian stocks in your portfolio.
3. Longest track record with best liquidity. Over seven years of data plus the largest AUM of any all-equity ETF in Canada gives me confidence in the fund’s stability and efficiency.
4. BlackRock’s scale. As the world’s largest asset manager, BlackRock has the resources to continuously optimize XEQT’s structure and costs.

That said, I want to be crystal clear: VEQT and ZEQT are both excellent funds. If you are already holding VEQT or ZEQT, there is absolutely no reason to sell and switch. The transaction costs and potential tax implications of switching would likely exceed any savings from the lower MER. And if you have a genuine preference for Vanguard or BMO, go with what you are comfortable with. Investor comfort leads to investor consistency, and consistency is what builds wealth.

If you are starting from scratch and want the most objectively efficient option, buy XEQT. If you already own one of the other two, keep it and keep buying. Either way, the most important thing is that you are investing in a globally diversified, low-cost, all-equity portfolio – and all three of these ETFs deliver exactly that.

Need a step-by-step walkthrough? Here is our guide on how to buy XEQT on Wealthsimple. And if you want to see how XEQT stacks up against other types of investments beyond just all-equity ETFs, check out our roundup of the best all-in-one ETFs in Canada.

9. Frequently Asked Questions

Can I hold more than one of these ETFs?

You can, but there is really no point. XEQT, VEQT, and ZEQT hold almost the same stocks in almost the same proportions. Owning two of them does not meaningfully improve your diversification – it just adds complexity to your portfolio. Pick one and stick with it.

Should I switch from VEQT to XEQT to save on the MER?

If you are holding VEQT in a TFSA or RRSP, you could sell and rebuy XEQT without tax consequences. The 0.04% MER savings would add up over time. But personally, I would not bother unless your portfolio is above $100,000 – below that, the annual savings are less than $40, and the hassle is not worth it. If you are in a non-registered account, selling triggers a capital gain, which could cost you far more in taxes than you would ever save on fees.

Is ZEQT too new to trust?

No. ZEQT is managed by BMO Global Asset Management, one of Canada’s largest and most established financial institutions. The fund’s structure – holding a handful of broad-market BMO ETFs – is proven and straightforward. A shorter track record means less historical data, but it does not mean the fund is risky or unreliable. The underlying indexes that ZEQT tracks have decades of data behind them.

Which ETF is best for a TFSA?

All three are excellent TFSA investments. Since there are no tax implications within a TFSA, you can focus purely on MER and allocation preferences. That slight MER advantage makes XEQT or ZEQT marginally better than VEQT in a TFSA, but the difference is genuinely small.

What about FEQT from Fidelity?

Fidelity launched FEQT as their all-equity offering. It is a fine fund, but it has the smallest AUM and shortest track record of the bunch. For most investors, XEQT, VEQT, or ZEQT remain the stronger choices due to liquidity and established track records. We are keeping an eye on FEQT and may add it to future comparisons as it matures.

Do any of these ETFs pay dividends?

Yes, all three pay quarterly distributions (dividends). The yields are modest – typically 1.5-2.5% annually – since these are equity growth funds, not income funds. If you are investing in a registered account, the distributions are automatically sheltered from tax. In a non-registered account, they are taxable. You can reinvest distributions manually or use DRIP to buy additional units automatically.

The Bottom Line

XEQT, VEQT, and ZEQT are three of the best investment products ever created for Canadian retail investors. For a cost of 0.20-0.24% per year, you get instant exposure to over 12,000 stocks across the globe, automatic rebalancing, and the simplicity of a one-fund portfolio. Our grandparents could not have dreamed of this level of access and efficiency.

My pick is XEQT for its combination of lowest cost, best liquidity, and optimal geographic allocation. But if you choose VEQT or ZEQT instead, you are not making a mistake – you are making a slightly different version of the same excellent decision.

The only real mistake is not investing at all. So stop comparing, pick one, and buy your first shares today.