XEQT vs XGRO: 100% Equity or 80/20 Growth Portfolio? (2026)

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Quick verdict: Choose XEQT if you want the highest-growth iShares all-in-one ETF and can handle a fully stock-based portfolio. Choose XGRO if you still want strong long-term growth, but prefer a built-in 20% bond cushion to make the ride less violent. For most younger Canadians investing for retirement, XEQT is the cleaner growth pick. For investors who know they will panic during a deep stock-market drop, XGRO is often the more realistic portfolio.

When comparing XEQT vs XGRO, the real decision is not fees, provider, or whether one is more diversified. Both are iShares all-in-one ETFs, both trade on the TSX in Canadian dollars, and both have a 0.20% MER. The difference is asset mix: XEQT is 100% equity, while XGRO targets 80% equity and 20% fixed income.

That one difference changes the whole job of the ETF. XEQT is built for maximum long-term growth. XGRO is built for growth with a modest shock absorber.

XEQT vs XGRO: side-by-side comparison

Source note: fund data above comes from the official iShares XEQT product page, iShares XGRO product page, XEQT fact sheet, and XGRO fact sheet. ETF data changes, so verify current figures before investing.

What XEQT holds

XEQT is the all-equity member of the iShares asset allocation ETF family. It owns five underlying iShares ETFs, which together give Canadian investors exposure to Canada, the U.S., developed international markets, and emerging markets.

As of the April 2026 iShares fact sheet, XEQT’s largest underlying positions were roughly:

• Canadian equities: about 26% through iShares S&P/TSX Capped Composite exposure.
• U.S. equities: about 44% through two U.S. total-market sleeves.
• Developed international equities: about 25% through EAFE exposure.
• Emerging markets: about 5%.

There are no bonds in XEQT. That is the point. If global equities have a great decade, XEQT should capture the full benefit. If stocks fall hard, XEQT takes the hit without help from a bond sleeve.

If you like the one-ticket ETF idea but want to build the Canadian equity slice yourself, our VCN vs XIC comparison covers two common Canadian-market building blocks.

If you want a deeper standalone breakdown, see our XEQT ETF review. If you are comparing all-equity funds specifically, our XEQT vs VEQT guide covers the iShares versus Vanguard version of this decision.

For the Vanguard version of the same equity-vs-growth-portfolio decision, see our VEQT vs VGRO comparison.

What XGRO holds

XGRO is also an iShares all-in-one ETF, but it targets a growth allocation instead of a pure equity allocation. Its strategic asset mix is 80% equities and 20% fixed income.

As of the April 2026 iShares fact sheet, XGRO’s main underlying sleeves were roughly:

• U.S. equities: about 37%.
• Canadian equities: about 20%.
• Developed international equities: about 20%.
• Canadian and global bonds: about 19% to 20%, split across several fixed-income ETFs.
• Emerging markets: about 4%.

That 20% bond sleeve is why XGRO exists. It gives you most of the growth profile of a stock-heavy portfolio, but with a little ballast when equity markets get ugly. It will not make downturns painless. It can make them less severe.

For a comparison inside the same iShares family, see our XGRO vs XBAL guide. XBAL is the more conservative 60/40 version.

The main difference: 100% equity vs 80/20

XEQT and XGRO overlap heavily. They both own broad Canadian, U.S., developed international, and emerging-market equity exposure. The question is whether you want bonds included.

A simple way to think about it:

• XEQT is an equity portfolio. It is for money you can leave invested for a long time and emotionally survive watching it drop.
• XGRO is a growth portfolio. It is still aggressive, but the bond allocation takes a little edge off the ride.

This matters more than the ticker letters. A 100% stock portfolio can fall 30% or more in a bad market. That is not a theoretical risk. It is the entry fee for higher long-run expected returns. If you will sell when that happens, the better spreadsheet answer is not actually better for you.

Fees: XEQT and XGRO are basically tied

Both XEQT and XGRO currently list a management expense ratio of 0.20%. Their management fees are also both listed at 0.17% after iShares reduced the fee on both ETFs in December 2025.

On a $100,000 portfolio, a 0.20% MER is about $200 per year before any trading costs. That is cheap enough that fees should not drive this decision. The bigger cost is behavioural: buying the wrong risk level, panicking, and selling during a downturn.

If you want to see how small MER differences compound over decades, use the Canadian ETF fee drag calculator.

Performance: why XEQT should usually lead in strong markets

Because XEQT owns more stocks, it should usually outperform XGRO during strong equity markets. That does not mean XEQT is always “better.” It means it is taking more equity risk.

Over the five years ending April 30, 2026, the iShares fact sheets showed higher annualized performance for XEQT than XGRO. That is exactly what you would expect after a period when equities did well. XGRO’s bond sleeve helped reduce risk, but it also pulled down returns during a mostly favourable stretch for stocks.

The useful question is not “which one won the last five years?” It is: which one are you more likely to hold for the next fifteen?

TFSA, RRSP, FHSA, and non-registered account considerations

Both XEQT and XGRO are Canadian-listed ETFs and are eligible for registered plans, according to iShares. For most Canadian DIY investors, that means both can fit inside a TFSA, RRSP, FHSA, RESP, or non-registered account.

• TFSA: Either ETF can work for long-term growth. XEQT makes more sense if you can handle all-equity volatility.
• RRSP: Either ETF can work as a simple retirement portfolio. XGRO may suit investors who want a built-in glide path toward lower risk.
• FHSA: Be careful. If you plan to use the money for a home purchase soon, even XGRO may be too risky. A cash ETF or high-interest savings product may fit better for short timelines.
• Non-registered account: Both produce taxable distributions and may have foreign withholding tax inside the structure. Keep records and expect T3 slips.

If your main decision is account type rather than ETF choice, start with our TFSA vs RRSP comparison.

Who should choose XEQT?

XEQT is the better fit if:

• You have at least a 10-year time horizon, and preferably longer.
• You want a one-ticket stock portfolio with no bond allocation.
• You are still adding money regularly and can treat downturns as normal.
• You are comfortable seeing your portfolio fall hard without changing the plan.
• You do not want to manage separate Canadian, U.S., international, and emerging-market ETFs.

For a young investor building a retirement portfolio inside a TFSA or RRSP, XEQT is hard to beat for simplicity. It is not magic. It is just a cheap, globally diversified stock portfolio that rebalances itself.

If you have already picked XEQT but are nervous about buying all at once, try the XEQT lump sum vs DCA simulator. It is built for the separate timing question, not the XEQT versus XGRO asset-allocation decision.

Who should choose XGRO?

XGRO is the better fit if:

• You want mostly stocks, but not 100% stocks.
• You know that a full-equity portfolio would make you nervous.
• You are closer to needing the money, but still want long-term growth.
• You want one ETF that automatically maintains an 80/20 mix.
• You value staying invested more than maximizing every last bit of expected return.

XGRO can be the better real-world ETF for someone who thinks XEQT is “mathematically better” but will not actually hold it through a rough market. The right ETF is not just the one with the highest expected return. It is the one you can keep owning.

Should you hold both XEQT and XGRO?

You can hold both, but most investors do not need to. XEQT and XGRO own many of the same equity markets. Holding both is mainly a way to create a custom bond allocation.

For example, a 50/50 mix of XEQT and XGRO gives you roughly 90% stocks and 10% bonds. That is not wrong. It is just a more complicated way to say you wanted something between all-equity and 80/20.

If you like custom allocations, that is fine. If your goal is simplicity, pick the one that matches your risk level and stop layering funds for the sake of layering funds.

Where to buy XEQT or XGRO in Canada

XEQT and XGRO both trade on the Toronto Stock Exchange, so you can buy them through most Canadian discount brokerages. The bigger issue is trading cost and account fit.

If you are buying ETFs regularly, a low-cost brokerage matters. Questrade can make sense for Canadian DIY investors who want broad account support, ETF investing, and CAD/USD flexibility. You can open a Questrade account here. Bonus terms and platform pricing can change, so compare current details before signing up.

For a fuller brokerage breakdown, see our Wealthsimple vs Questrade comparison. If you are new to placing ETF trades, start with how to buy stocks in Canada.

Final verdict: XEQT vs XGRO

XEQT is better if you want maximum long-term growth in one iShares ETF and can handle 100% stock volatility. It is the cleaner choice for long-term Canadian investors who want a simple global equity portfolio.

XGRO is better if you want a little more stability without giving up the growth profile entirely. The 20% bond sleeve will drag in strong markets, but it can help you stay invested when stocks are falling and your instincts are getting loud.

If you are young, disciplined, and investing for retirement, XEQT is probably the better default. If you are less certain about your stomach for volatility, XGRO may be the smarter portfolio even if XEQT has the higher expected return. The boring answer is the useful one: pick the ETF you can actually hold.

For the broader ETF landscape, see our best Canadian ETFs guide.

XEQT vs XGRO FAQ

Is XEQT better than XGRO?

XEQT is better if you want a 100% equity portfolio and can handle larger drawdowns. XGRO is better if you want most of the growth potential but prefer a built-in 20% bond allocation.

What is the main difference between XEQT and XGRO?

The main difference is asset allocation. XEQT targets 100% equities. XGRO targets 80% equities and 20% fixed income.

Do XEQT and XGRO have the same MER?

Yes. Both XEQT and XGRO currently list a 0.20% management expense ratio and a 0.17% management fee. Always verify current fees on the iShares product pages before investing.

Can I hold XEQT and XGRO together?

Yes, but it is usually unnecessary. Holding both mainly creates a custom equity/bond mix. A 50/50 split of XEQT and XGRO is roughly a 90/10 stock/bond portfolio.

Is XGRO safer than XEQT?

XGRO is usually less volatile because it includes about 20% fixed income. It can still lose money, but its bond sleeve can reduce the size of stock-market swings compared with XEQT.

Is XEQT or XGRO better for a TFSA?

Both can work in a TFSA. XEQT is a strong fit for long-term, high-risk TFSA investors. XGRO may fit better if you want a smoother ride or are less comfortable with 100% equity exposure.

Should I switch from XGRO to XEQT?

Only if your risk tolerance and time horizon genuinely support a 100% equity portfolio. Do not switch just because XEQT has performed better in a strong stock market. The extra return comes with extra volatility.

Disclaimer: This article is general information, not personalized financial advice. ETF fees, holdings, yields, and tax details can change. Check the latest fund documents and consider speaking with a qualified advisor before making investment decisions.

Last updated: May 14, 2026