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Quick verdict: Choose XEQT if you want one ticker that does the whole job. It holds Canada, the U.S., international developed, and emerging markets in a single all-equity fund. For most Canadian investors who want set-and-forget diversification, that is the better default. Choose VFV if you specifically want concentrated S&P 500 exposure and are willing to build the rest of your diversification (Canada, international, emerging markets) separately.
Both ETFs are popular, Canadian-listed, and trade on the TSX in CAD. Both can be bought commission-free at Wealthsimple Trade or Questrade. The reason they get compared so often is that they answer two different questions. XEQT answers “what should my whole equity portfolio be?” VFV answers “how do I get U.S. large-cap exposure cheaply?” That is the entire decision.
XEQT overview
iShares Core Equity ETF Portfolio (XEQT) is a fund of funds. iShares packages five underlying TSX-listed iShares ETFs into one ticker that gives Canadians a fully diversified, 100% equity portfolio with automatic rebalancing built in. Buy XEQT and you own a slice of every major equity market without thinking about country weights.
Key details
- Inception date: August 7, 2019
- Net assets: $15.15 billion CAD
- Management fee: 0.17%
- MER: 0.20%
- Distribution yield: 1.65% (12-month trailing)
- Number of holdings (funds): 5 underlying iShares ETFs
- Risk level: Medium
XEQT’s underlying ETFs (current weights)
- U.S. equity sleeve, ~43%: Two underlying iShares Core S&P U.S. equity ETFs combine to cover the full U.S. stock market.
- iShares S&P/TSX Capped Composite (XIC), ~26%: Tracks the Canadian equity market.
- iShares MSCI EAFE IMI Index (XEF), ~25%: Developed international markets outside North America.
- iShares MSCI Emerging Markets (XEC), ~5%: Adds emerging-market stocks (China, India, Brazil, etc.).
Note that 26% Canadian weighting. Canada is roughly 3% of global market cap, so XEQT runs a deliberate Canadian home-country bias to soften CAD/USD currency risk for Canadian investors. Some people like that. Others would prefer closer to market-cap weights, which is one of the actual differences in our XEQT vs VEQT comparison.
VFV overview
Vanguard S&P 500 Index ETF (VFV) tracks the S&P 500: roughly 500 of the largest U.S. companies, weighted by market cap. It is one of the cheapest ways for a Canadian to buy the S&P 500 in Canadian dollars without converting to USD. There is no Canadian, international, or bond exposure.
Key details
- Inception date: November 2, 2012
- Net assets: $27.8 billion CAD
- Management fee: 0.08%
- MER: 0.09%
- Distribution yield: 1.2%
- Number of holdings: 504 (individual U.S. stocks)
- Risk level: Medium
VFV’s top 10 holdings (current weights)
- NVIDIA Corp., 7.6% (now the largest single holding)
- Apple Inc., 6.7%
- Alphabet Inc., 5.4%
- Microsoft Corp., 4.9%
- Amazon.com Inc., 3.7%
- Broadcom Inc., 2.6%
- Meta Platforms Inc., 2.2%
- Tesla Inc., 1.9%
- Berkshire Hathaway Inc., 1.6%
- JPMorgan Chase & Co., 1.3%
Two things stand out from that list. The top 10 alone are about 38% of the fund, with most of the weight concentrated in U.S. mega-cap tech. And every name on the list is American. VFV is well-diversified across 500-ish U.S. companies, but it is not a substitute for a global portfolio.
XEQT vs VFV: side by side
| Feature | XEQT | VFV |
|---|---|---|
| Management Expense Ratio (MER) | 0.20% | 0.09% |
| Net assets | $15.15 billion | $27.8 billion |
| Underlying funds / stocks | 5 iShares ETFs | 504 stocks |
| U.S. market exposure | ~43% | 100% |
| Canadian market exposure | ~26% | None |
| International exposure | ~25% | None |
| Emerging markets exposure | ~5% | None |
Fund data sourced from iShares Canada XEQT and Vanguard Canada VFV fact sheets dated March 31, 2026. ETF metrics change quarterly. Verify current figures before investing.
The two practical differences
1. Fees
VFV’s 0.09% MER is less than half of XEQT’s 0.20%. On a $100,000 portfolio that is about $110 per year. Real money, but not the kind of money that should override the diversification question. XEQT is paying for global coverage, five underlying ETFs, and ongoing rebalancing, not for sloppy management.
If fees are the single biggest factor in your decision, you are probably already a multi-ETF investor and XEQT is not for you anyway.
2. Diversification
This is where the actual decision lives. XEQT is a complete equity portfolio. VFV is one piece of one. If you buy VFV alone, you have no Canadian equity, no international developed (Europe, Japan, Australia), and no emerging markets. That is a deliberate concentration bet on the U.S. — perfectly valid for some investors, but it is a bet, not a default.
The U.S. has been the best major equity market for most of the last 15 years. Whether that continues for the next 15 is the question VFV asks you to take a side on.
3. Currency risk (both unhedged)
Both ETFs are unhedged. CAD/USD movements affect XEQT’s returns through its ~43% U.S. sleeve and affect VFV’s entire return. Most Canadian investors do not hedge, and the long-run impact has been small relative to the diversification benefit. If currency volatility specifically bothers you, look at VFV vs VSP — VSP is the CAD-hedged version of the S&P 500.
Should you hold both XEQT and VFV?
Holding both is a strategy a lot of Canadians use, and it is not crazy. Adding VFV on top of XEQT tilts your portfolio more toward the U.S. without giving up the rest of XEQT’s global exposure.
The catch is that you are not really diversifying. XEQT already holds U.S. equities through its underlying ETFs (about 43% of the fund). Adding VFV mostly stacks more U.S. on top. If your view is “I want extra U.S. tilt,” that is fine and the combination delivers it. If your view is “two ETFs feels safer than one,” the second ETF is doing nothing useful.
A common compromise is something like 70% XEQT plus 30% VFV, which moves your U.S. allocation from ~43% to roughly 60%. That is a real change. Decide whether it is the bet you want to make.
Final verdict
For most Canadians who want one ETF and never want to think about asset allocation again, XEQT is the answer. For Canadians who already have Canadian and international exposure elsewhere and specifically want to add cheap U.S. large-cap, VFV is the answer. The two ETFs are not really competitors. They fit different jobs.
Both XEQT and VFV trade commission-free at Wealthsimple Trade and Questrade. If Questrade fits your investing style, you can open a Questrade account here. Bonus offers can change, and this is an affiliate link. For a side-by-side broker comparison, see our Wealthsimple vs Questrade review.
For a wider lens on Canadian ETFs across categories, see our Best Canadian ETFs guide. If you are choosing between iShares and Vanguard for the all-equity slot specifically, see our XEQT vs VEQT comparison. If the question is all-equity XEQT versus the 80/20 iShares growth portfolio, see XEQT vs XGRO.
If you already know XEQT is the right kind of ETF but are unsure whether to buy all at once or ease in, use the XEQT lump sum vs DCA simulator to compare a lump sum against 3, 6, and 12-month DCA plans.
XEQT vs VFV FAQ
How does XEQT differ from VFV?
XEQT is a globally diversified all-equity ETF that holds Canada, the U.S., international developed markets, and emerging markets through five underlying iShares ETFs. VFV holds only U.S. large-cap stocks via the S&P 500. XEQT is a portfolio. VFV is one piece of one.
Should I buy both XEQT and VFV?
Only if you specifically want extra U.S. tilt on top of XEQT’s global mix. XEQT already holds ~43% U.S. equities, so adding VFV concentrates more on the U.S. rather than diversifying further.
Can I hold XEQT or VFV in a TFSA or RRSP?
Yes. Both are eligible for TFSAs, RRSPs, FHSAs, RESPs, RRIFs, RDSPs, and non-registered accounts. They are common core holdings in registered accounts for long-term Canadian investors.
Which is better for long-term growth?
VFV has a higher expected return ceiling because it is concentrated in U.S. large-cap. It also has a lower floor when the U.S. underperforms. XEQT’s diversification will rarely lead and rarely lag by the full amount. Over very long horizons, both are reasonable. Which one suits you depends on whether you are willing to take the U.S.-only bet.
Do XEQT and VFV have currency risk?
Yes, both are unhedged. CAD/USD movements affect VFV’s entire return and roughly 43% of XEQT’s. If you want CAD-hedged S&P 500 exposure specifically, see VFV vs VSP.
Are XEQT and VFV good for new investors?
Both are beginner-friendly because they are cheap, liquid, and trade commission-free at major Canadian brokerages. For a new investor who wants one decision and done, XEQT is usually the cleaner pick. VFV makes more sense once you have a clearer view on how you want the rest of your portfolio to look.
Last updated: May 3, 2026
