ZEQT, VEQT, and XEQT are Canada’s most popular all-equity asset allocation ETFs. But while VEQT and XEQT have attracted tens of billions of dollars from investors, ZEQT receives far less attention. So why is that? Is there something materially different about ZEQT that explains the gap in assets — or are these ETFs far more similar than most investors assume? In this video, I compare ZEQT vs VEQT vs XEQT, looking at performance, portfolio structure, diversification, foreign withholding taxes, and fees to see whether there’s a clear reason investors tend to favour the Vanguard and iShares ETFs.

Topics covered include:

  • Performance since ZEQT launched in 2022
  • Canadian vs foreign equity exposure
  • How each ETF constructs its global portfolio
  • Diversification across U.S., international, and emerging markets
  • Foreign withholding tax structure
  • Management fees

Once you put everything together, these ETFs turn out to be far more similar than they are different. The large popularity gap may say more about investor behaviour than about meaningful differences in the portfolios.

If you’re currently investing in one of these all-equity ETFs, I’d be curious what drove your decision — feel free to share in the comments.

In my next video, I’ll look at the long-term backtested performance of BMO, Vanguard, and iShares asset allocation ETFs.

Chapters

  • 00:00 Introduction
  • 00:32 Performance Comparison
  • 01:18 Strategic Asset Mix (Canada vs Foreign)
  • 01:59 Foreign Equity Construction
  • 02:56 Diversification Differences
  • 04:31 Foreign Withholding Taxes
  • 05:01 Fees Comparison
  • 05:15 Final Thoughts