XEQT ETF is a multi-asset ETF that invests in one or more ETFs managed by BlackRock Canada or its affiliates, providing exposure to equity securities.

The ETF offers long-term capital growth to investors. With XEQT you get exposure to over 9,000 individual stocks traded worldwide.

The ETF is part of group of 5 ETFS that can be used to manage a portfolio based on your desired fixed income and equity exposure.

Pros of iShares XEQT ETF

XEQT provides exposure to ETFs that are diversified across regions.
It is continuously monitored and also rebalanced.
Less expensive with an MER of 0.20%.

Cons of iShares XEQT ETF

Provides exposure to equity ETFs managed only by BlackRock Canada.
XEQT’s management fee is higher compared to the MER of individual ETFs.

iShares XEQT ETF Facts

Inception Date: August 7, 2019
Benchmark: None – 100% Equity ETF from iShares Core ETF Portfolios
Net Assets: $495M
MER: 0.20%
Distribution Yield: 1.55%
Dividend Schedule: Quarterly

iShares XEQT ETF MER – Management Expense Ratio

XEQT’s management fee stands at 0.18% and MER is 0.20%. Its contemporary Vanguard’s VEQT ETF has an MER of 0.25%.

The MER is what Blackrock takes to manage the fund for you. It’s much cheaper than mutual funds and in some cases cheaper than investing on your own.

Mutual funds can charge over 2% and it robs you of your returns. It’s time to ditch your mutual funds and switch to ETF ASAP. Many brokers such as Questrade offer free ETFs.

iShares XEQT ETF Performance

The annual rate of return for iShares XEQT ETF since inception is 15.99%. While it looks great, it’s not actualy great for the time span it comes. The ETF is only 2 years old and the SP500 has had twice that return.

When it comes to investing 100% in equity, there are many options. A simple SP500 index can do the trick. You know the saying, keep it stupid simple (KISS).

XEQT ETF performance vs TSX and SP500 — Dividend Adjusted Chart by Stock Rover - **Try it out.**

Take your TFSA account as an example. The rules are the same for everyone and I mean everyone. The growth is ultimately a factor of your investment performance provided you make your TFSA contribution limit every year. The annual performance of an ETF matters as you can see below the growth over 20+ years.

wdt_ID	Year	Yearly Limit	Cumulative	5% Growth	10% Growth	Dividend Earner	Spousal
1	2009	5,000	5,000	5,250	5,500	Not Tracked	Not Started
2	2010	5,000	10,000	10,762	11,550	Not Tracked	Not Started
3	2011	5,000	15,000	16,550	18,205	Not Tracked	Not Started
4	2012	5,000	20,000	22,628	25,525	Not Tracked	Not Started
5	2013	5,500	25,500	29,534	34,128	$41,742	Not Started
6	2014	5,500	31,000	36,786	43,590	$52,820	Not Started
7	2015	10,000	41,000	49,125	58,949	$56,307	Not Started
8	2016	5,500	46,500	57,356	70,984	$70,200	Not Started
9	2017	5,500	52,000	65,999	84,034	$78,900	$13,308
10	2018	5,500	57,500	75,074	98,487	$96,937	$58,818
11	2019	6,000	63,500	85,128	114,986	$129,467	$82,596
12	2020	6,000	69,500	95,684	133,030	$153,993	$95,906
13	2021	6,000	75,500	106,769	152,933	$181,601	$113,194
14	2022	6,000	81,500	118,407	174,827	$183,031	$144,633
15	2023	6,500	88,000	131,152	199,459	$223,557	$166,695
16	2024	7,000	95,000	145,061	227,105	$247,285 YTD	$195,000 YTD
17	2025	7,000	102,000	159,664	257,516
18	2026	7,000	109,000	174,997	290,967
19	2027	7,000	116,000	191,097	327,764
20	2028	7,500	123,500	208,526	368,791
21	2029	7,500	131,000	226,828	413,920
22	2030	7,500	138,500	246,044	463,562
23	2031	7,500	146,000	266,221	518,168
24	2032	7,500	153,500	287,407	578,235
25	2033	7,500	161,000	309,653	644,308
26	2034	7,500	168,500	333,011	716,989
27	2035	7,500	176,000	357,536	796,938
28	2036	7,500	183,500	383,288	884,881
29	2037	7,500	191,000	410,327	981,620
30	2038	7,500	198,500	438,719	1,088,032

iShares XEQT ETF Holdings

Unlike an S&P500 ETF where your exposure is from US companies, XEQT is diversified across countries and continents.

It holds over 1,200 companies. It’s not worth listing them all here and instead it’s much better to look into the country exposure you are getting from it.

iShares XEQT ETF Geography Exposure

The iShares XEQT Core Equity ETF Portoflio invests in 4 different ETFs to bring the outlined geographical diversification.

ITOT – (46.80%) ISHARES CORE S&P TOTAL U.S. STOCK
XIC – (24.70%) ISHARES S&P/TSX CAPPED COMPOSITE
XEF – (23.25%) ISHARES MSCI EAFE IMI INDEX
IEMG – (4.90%) ISHARES CORE MSCI EMERGING MARKETS

Why hold iShares XEQT ETF

As a pure play 100% equity, I am not sure why you should not just buy the best 500 companies in the US. All of them operate around the world bringing you exposure to those regions by proxy.

I vote to stick with an S&P500 ETF such as VFV.

If you want the dividends, it’s not clear you will get the same growth but the the best banks and the best utility stocks will give you more income.

XEQT ETF Review: One Equity Portfolio ETF