XEQT vs VFV Calculator: Project Growth and Compare Fees

How this XEQT vs VFV calculator works

Enter your starting amount, monthly contribution, and timeline once, then set the annual return you expect from each fund. The calculator compounds both monthly, adds your contributions at the start of each month, and deducts each fund's MER every month, so the fee figures are the true cumulative cost of fees with compounding included, not a simple percentage times years.

The defaults use 8% for both funds, deliberately. VFV and XEQT have posted similar long-run returns, and the honest comparison is what your assumptions produce, not a prediction dressed up as one. Change either return and watch which side the fee gap and the return gap each move. If you want the single-fund version, the XEQT calculator runs the same math on one holding, and the MER calculator isolates what fees alone do to any fund.

XEQT vs VFV at a glance

	XEQT	VFV
Full name	iShares Core Equity ETF Portfolio	Vanguard S&P 500 Index ETF
What it holds	100% global equities, via four underlying ETFs	The S&P 500 index
Stocks held	Roughly 12,000	About 500 large US companies
US exposure	About 45%	100%
Canadian exposure	About 25%	None
MER	0.20%, all-in	0.09%
Distributions	Quarterly	Quarterly

The real tradeoff: concentration vs diversification

VFV is the S&P 500: roughly 500 of the largest US companies, weighted by market cap, so the giants dominate. The ten largest holdings sit near 40% of the fund, and the whole thing is 100% American and unhedged, which means the loonie's moves against the US dollar flow straight into your returns. When US mega-caps lead, as they have for much of the last decade, VFV is hard to beat.

XEQT is an ETF of ETFs: about 45% US total market, 25% Canadian equities, 25% developed markets outside North America, and 5% emerging markets. The Canadian slice gives you a home bias that softens currency swings and is friendlier on dividend taxes. Its pitch is that you stop guessing which region leads next and own all of them, rebalanced for you.

If you enjoy this kind of head-to-head, the ETF comparison hub collects every matchup on the site, and the XEQT vs VEQT vs ZEQT comparison is the closest sibling to this page, the same all-in-one idea from three issuers.

The fee gap, in dollars

0.20% versus 0.09% looks like a rounding error until you compound it. On the default scenario above, $10,000 to start and $500 a month for 20 years at 8%, XEQT's cumulative fee drag comes out near $9,200 while VFV's lands near $4,200. Same assumed return, and fees alone open a $5,000 gap. Fees are the one part of your return you control completely, which is why the calculator shows them as dollars rather than percentages.

So which one should you buy?

If you believe US large caps keep leading and you want the cheapest possible ride, VFV is the cleaner pick. If you want one holding that covers the world, rebalances itself, and keeps you from tinkering, XEQT is the simpler one to live with. Neither choice is wrong. The expensive mistake is switching back and forth chasing last year's winner.

Holding both is fine as long as the US tilt is deliberate. And one practical note: switching between them inside a TFSA or RRSP costs nothing but the trade itself, while selling in a non-registered account triggers capital gains tax that can dwarf years of MER savings. If you are still choosing where to buy, our Wealthsimple review walks through fees and account types, and we separately answer whether Wealthsimple is safe.

Common questions

Is VFV better than XEQT?

Neither is objectively better. VFV gives you 500 large US companies at a 0.09% MER, while XEQT holds roughly 12,000 stocks across the US, Canada, developed markets, and emerging markets at 0.20%. Choose VFV for concentrated US exposure, XEQT for one-ticket global diversification. The calculator above shows how the fee gap compounds over your timeline.

Can I hold both XEQT and VFV?

Yes, and many investors do, but know what you are buying. About 45% of XEQT is already US equities, so adding VFV on top tilts your portfolio further toward large US companies and partly undoes the global balance XEQT was built for. If that tilt is intentional, the combination is fine.

What is the MER of VFV?

VFV charges a 0.09% management expense ratio, with a 0.08% management fee before taxes and operating costs, according to Vanguard's fund factsheet. On a $100,000 portfolio that is about $90 a year, deducted gradually from the fund's returns rather than billed to you directly.

What is the MER of XEQT?

XEQT charges a 0.20% management expense ratio, which includes the fees of the four underlying iShares ETFs it holds. On a $100,000 portfolio that is about $200 a year. The figure is all-in, so there is no extra layer of fees hiding beneath the headline number.

Which is better in a TFSA, XEQT or VFV?

Both work in a TFSA. The wrinkle is US withholding tax: dividends paid by US companies face a 15% tax that is not recoverable inside a TFSA. VFV is 100% US equities, so all of its dividends are exposed, while only about 45% of XEQT's dividends face it. In an RRSP, the US treaty exempts the tax for both.

Has VFV outperformed XEQT?

Over most of the period both funds have existed, yes. VFV benefited from a long run of US large-cap dominance, while XEQT's Canadian and international holdings dragged on relative returns. That is a statement about the past decade's markets, not a forecast. Leadership rotates, which is the entire argument for XEQT's diversification.

Is XEQT more diversified than VFV?

Meaningfully. VFV holds about 500 large US companies in one country and one currency. XEQT holds roughly 12,000 stocks across the US, Canada, developed international markets, and emerging markets. If your worry is a long stretch where US mega-caps underperform, XEQT spreads that risk across the rest of the world.

Should I switch from VFV to XEQT?

In a TFSA or RRSP, switching costs nothing but the trading commission, and at Wealthsimple there is not even that, so the decision is purely about strategy. In a non-registered account, selling VFV triggers capital gains tax on your profits, which can easily cost more than years of the MER difference.