All-in-one equity ETF review
XEQT Review (2026): The Best All-In-One Canadian ETF?
Best for
Long-term Canadian investors with 10+ year horizons who want a complete equity portfolio in one ticker. Perfect for TFSAs, FHSAs, and RRSPs. Beginners and experienced investors alike.
Not for
Income-focused investors (yield is too low), pre-retirees needing capital preservation (no bond allocation), or investors who actively want US-overweight (XEQT only holds ~45% US).
Bottom line
XEQT is the best one-ticker equity ETF in Canada for 2026. The combination of low MER (0.20%), broad diversification (~9,000 stocks), auto-rebalancing, and CIPF-insured availability at every major Canadian broker makes it the default choice for long-term Canadian investors. I hold it as the core of my TFSA.
4.8 /5 (Our score)
Pros
- Holds ~9,000 global stocks in one ticker — instant full diversification
- 0.20% MER — among the cheapest one-ticker ETFs in Canada
- Auto-rebalances internally — never need to manage allocation
- 100% equity for long-term growth, no bond drag
- Available commission-free at most major Canadian brokers
- Eligible for TFSA, RRSP, FHSA, RESP, and all other Canadian registered accounts
- Largest AUM in the one-ticker category (~$5B)
Cons
- 100% equity = full market volatility (−27% drawdown in 2020 was real)
- Slightly higher MER than DIY 4-ETF approach (0.20% vs 0.05–0.07% for individual)
- ~25% Canadian weight may feel home-biased to some investors
- Distribution yield is modest (~1.6%) — not for income-focused investors
- Subject to Bank of Canada CRA capping rules during high market concentration periods
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XEQT is the most-recommended Canadian ETF on the r/CanadianInvestor subreddit, and for good reason. It’s a complete equity portfolio in one ticker, costs 0.20% per year, and requires zero ongoing decisions. After holding XEQT as the core of my TFSA since 2020, here’s the honest review.
What XEQT actually holds
XEQT (iShares Core Equity ETF Portfolio) is a fund-of-funds — it holds four underlying iShares ETFs in fixed proportions:
| Underlying ETF | Weight | Coverage | |
|---|---|---|---|
| ITOT (iShares Core S&P Total US Stock Market) | ~45% | Full US market, ~3,500 stocks | |
| XIC (iShares Core S&P/TSX Capped Composite) | ~25% | Canadian large + mid cap, ~250 stocks | |
| IEFA (iShares Core MSCI EAFE IMI) | ~25% | International developed ex-NA, ~3,000 stocks | |
| IEMG (iShares Core MSCI Emerging Markets IMI) | ~5% | Emerging markets, ~3,000 stocks |
Total holdings across underlying ETFs: ~9,000 stocks. Top 10 by weight (May 2026):
- Apple (AAPL) — ~3.5%
- Microsoft (MSFT) — ~3.2%
- Nvidia (NVDA) — ~2.8%
- Amazon (AMZN) — ~1.8%
- Royal Bank of Canada (RY) — ~1.5%
- Toronto-Dominion Bank (TD) — ~1.3%
- Alphabet (GOOG) — ~1.3%
- Meta (META) — ~1.0%
- Berkshire Hathaway (BRK.B) — ~0.9%
- Tesla (TSLA) — ~0.8%
The top 10 stocks make up about 18% of XEQT. The remaining 82% is spread across the other ~8,990 holdings.
Performance: 5-year track record
| Metric | Value | |
|---|---|---|
| 5-year total return (annualized) | ~9.4% | |
| Best calendar year | +22% (2024) | |
| Worst calendar year | −15% (2022) | |
| Volatility (5y std dev) | ~13% | |
| Maximum drawdown | −27% (March 2020) | |
| Recovery time from max drawdown | ~6 months | |
| Distribution yield (TTM) | ~1.6% |
XEQT has produced equity-like returns with full equity volatility. The 27% March 2020 drawdown is real — that’s the cost of 100% equity exposure. Investors uncomfortable with that level of volatility should consider XGRO (80/20) or XBAL (60/40) instead.
Tax treatment
XEQT distributions consist of:
- Eligible Canadian dividends (~25% of distributions, from Canadian holdings) — qualify for the Dividend Tax Credit
- Foreign dividends (~70% of distributions, from US, international, emerging) — fully taxable at marginal rate in non-registered; subject to 15% US withholding tax in TFSAs
- Minor capital gains distributions (~5%)
Tax efficiency by account:
- TFSA: all distributions tax-free except the unrecoverable 15% US withholding tax inside the underlying ITOT (this is built into the MER, not a separate cost). Best account for XEQT.
- RRSP: US withholding tax exempt under the Canada-US tax treaty (a small but real edge for US holdings vs TFSA). Distributions are tax-deferred until withdrawal.
- FHSA: same as TFSA — distributions tax-free.
- Non-registered: distributions taxed at marginal rate; capital gains realized on sale (50% inclusion rate).
For most investors, XEQT in a TFSA is the highest-leverage allocation.
Where XEQT fits in a Canadian portfolio
As 100% of equity exposure (the simplest case):
- One ticker, monthly auto-deposit, never rebalance
- Best for beginners and anyone wanting maximum simplicity
- Total cost: 0.20% MER
As core + tilt (intermediate):
- 70–80% XEQT + 20–30% specific tilt (VFV for US overweight, VDY for Canadian dividend, etc.)
- Adds slight complexity but lets you express specific views
- Total cost: ~0.18–0.22% MER
As part of a 4-ETF DIY portfolio (advanced):
- Replace XEQT with XIC + VFV + XEF + VEE in custom weights
- Saves ~0.13% MER
- Requires annual rebalancing
- Worth it for portfolios $200K+ where the MER savings exceed the time cost
For most readers: just hold XEQT as 100% of your equity exposure. The 0.20% MER is genuinely low cost for global diversification.
Where to buy XEQT
XEQT trades on the TSX. Available commission-free at:
- Wealthsimple Trade — $0 buy AND sell, $1 minimum, fractional shares (Canadian)
- Questrade — $0 buy, $4.95–$9.95 sell
- National Bank Direct Brokerage — $0 both sides
For DRIP (dividend reinvestment), all major brokers support it on XEQT. At Wealthsimple Trade, fractional shares mean DRIP works on partial-share amounts.
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My personal experience with XEQT
I started buying XEQT in mid-2020 after the COVID crash recovery began. Approximately $50,000 of my TFSA is now in XEQT, with monthly auto-deposits of $500 continuing.
What I like:
- Set and forget. I check it once a quarter at most. Never rebalance.
- DRIP works. Quarterly distributions reinvest into more XEQT shares automatically.
- No decision fatigue. No “should I overweight US?” or “should I add international?” — XEQT has it all.
- Low cost. 0.20% MER is genuinely cheap for what you get.
What I’m cautious about:
- Concentration risk. Top 10 holdings (mostly US tech) are ~18% of the fund. A US tech crash would hit XEQT meaningfully.
- No bonds. I’m 100% equity by choice but if I were 5+ years from retirement I’d consider XGRO (80/20) instead.
- Home bias. 25% Canadian weight is more than market-cap weighting would dictate (Canada is ~3% of global market cap). Defensible for currency reasons but worth understanding.
XEQT vs the alternatives
For long-term equity exposure in a Canadian registered account:
| Choice | Best for | |
|---|---|---|
| XEQT (this fund) | Most Canadians, simplicity-first, beginners | |
| VEQT | Vanguard preference, more Canadian tilt (30% vs 25%) | |
| XGRO | Want some bonds (80/20 equity/bond) | |
| XBAL | Conservative (60/40) | |
| DIY 4-ETF (XIC+VFV+XEF+VEE) | Advanced, save ~0.13% MER, want custom weights | |
| VFV alone | 100% US S&P 500 — concentrated US bet |
For deeper comparisons:
- XEQT vs VEQT — the closest competitor
- VFV vs XEQT — US-only vs global
My final verdict
XEQT is the best one-ticker equity ETF for Canadian investors in 2026. The combination of low MER, broad diversification, internal rebalancing, and broad availability makes it the obvious default for long-term retirement money in TFSAs, RRSPs, and FHSAs.
For 80% of Canadian investors, XEQT alone is a complete equity allocation. For the other 20%, it’s still a great core to build on with specific tilts.
I have held it as the core of my TFSA since 2020 and have no plans to switch.
Read next
- XEQT vs VEQT — the head-to-head
- Best Canadian ETFs — full ETF landscape
- VFV vs XEQT — for US-only investors
- Wealthsimple vs Questrade — where to buy
Frequently asked questions
What does XEQT stand for?
XEQT is the ticker symbol for the iShares Core Equity ETF Portfolio. Listed on the Toronto Stock Exchange (TSX:XEQT). It's a fund-of-funds that holds four underlying iShares ETFs covering Canadian, US, international, and emerging-market equities.
What is XEQT's MER?
XEQT's Management Expense Ratio (MER) is 0.20% per year. The MER is automatically deducted from the fund's NAV — you never see a separate fee on your account. Over 30 years on a $100,000 holding growing at 7%, the cumulative MER cost is about $25,000 — modest given the diversification you receive.
How much does XEQT pay in dividends?
XEQT pays distributions quarterly. The trailing 12-month yield is typically around 1.6% — modest because XEQT holds growth-oriented global equity, not high-yield dividend stocks. Distributions consist of dividends from underlying holdings plus minor capital gains. Reinvest via DRIP for compounding.
Is XEQT good for a TFSA?
Yes — XEQT is one of the most-recommended TFSA holdings in Canada. The dividends and growth are completely tax-free in a TFSA. The 1.6% distribution yield works out to about $160/year on a $10,000 TFSA position, all tax-free. For long-term retirement money in a TFSA, XEQT is hard to beat.
What does XEQT hold?
XEQT holds about 9,000 global stocks via four underlying iShares ETFs: ITOT (US total market) ~45%, XIC (S&P/TSX Capped Composite) ~25%, IEFA (international developed ex-North America) ~25%, IEMG (emerging markets) ~5%. The largest single stock is typically Apple, followed by Microsoft, Nvidia, Royal Bank of Canada, and Toronto-Dominion Bank.
Is XEQT the best Canadian ETF?
For most beginner and intermediate Canadian investors wanting one-ticker simplicity: yes. XEQT's combination of low MER (0.20%), global diversification (~9,000 holdings), and auto-rebalancing makes it the default best choice. The closest alternative is VEQT (Vanguard) at 0.24% MER and ~13,500 holdings — functionally similar.
How is XEQT different from VEQT?
Both are 100% equity all-in-one Canadian ETFs. XEQT (iShares) has 0.20% MER vs VEQT (Vanguard) at 0.24%. XEQT holds ~9,000 stocks; VEQT holds ~13,500. VEQT has slightly more Canadian (30% vs XEQT's 25%) and slightly less US (42% vs 45%). Performance has been within 0.1–0.2% of each other historically — they're functionally interchangeable.
Should I buy XEQT or build my own portfolio?
For most investors: just buy XEQT. The DIY 4-ETF approach (XIC + VFV + XEF + VEE) costs about 0.05–0.07% MER vs XEQT's 0.20% — saving ~$13 per year per $10,000. But it requires you to rebalance annually. For investors with $200K+ who actively want to manage allocation, DIY can save modest fees. For everyone else, XEQT's auto-rebalancing is worth the 0.13% premium.
Where can I buy XEQT?
XEQT is available commission-free to buy at Wealthsimple Trade ($0 buy and sell) and Questrade ($0 buy, $4.95–$9.95 sell). National Bank Direct Brokerage is $0 both sides. Big 5 bank brokers (TD Direct, RBC Direct, BMO InvestorLine, CIBC Investor's Edge) charge $9.95 per trade typically.
Has XEQT outperformed XIC + VFV combined?
Over the last 5 years, the comparison is close. XEQT (0.20% MER) has roughly tracked a hypothetical 70% VFV + 30% XIC portfolio (effective ~0.07% MER), with the MER difference being the main drag on XEQT. The home-bias question matters: XEQT is fixed at ~25% Canadian; a DIY portfolio lets you choose 0–50%. Both perform similarly.
Reader offer
XEQT
Affiliate link — we may earn a commission, at no extra cost to you. Disclosure.
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