I started to question this strategy a few weeks after we made the change. All Equity ETFs Comparison – VEQT vs. XEQT vs. HGRO. Quarterly distributions with yield ~ 1.5%. When it comes to sector exposure, XEQT holds a similar percentage in Financial Services and Technology. VEQT vs. XEQT vs. HGRO Equity ETFs. In other words, the fund is well diversified. This is probably why VEQT has the highest MER out of all three all equity ETFs. If I had to pick one all equity ETF out of these three without looking at the other parameters, I would probably pick XEQT since it sits in the middle of all three ETFs. Now, let us compare the market returns of VEQT vs. XGRO … i am an experienced investor so i don’t freak over volatility . This seems to contradict the point of holding an index ETF. Given how poorly the Energy sector has performed lately, it is slightly worrisome to see VEQT with the highest exposure in the Energy sector. With an investment timeline of more than twelve years, it does make more and more sense to hold 100% stocks in the RESPs to produce a higher return. Vanguard has been managing ETFs for a very long time and they certainly have created a great product with VEQT. Since this all equity ETF holds 3,605 fewer stocks or 28% less compared to VEQT, I would assume XEQT to have a lower turnover rate than VEQT. You need to withdraw everything from the RESP before your last child finishes university. The differences in management fees between these three all equity ETFs are very small. While holding bonds in a portfolio can reduce volatility caused by the stock market, given the extremely low interest rates and twelve plus years timeline for our kids’ RESPs, I started to think that holding an all equity ETF makes more sense. Do you think there is any benefit if you buy xeqt, and still buy individual stocks/dividend stocks from the canadian market like RBC, Fortis? On a million-dollar portfolio, you're paying about $2500/year more vs. $3400/year more with VEQT. Today our portfolio generates over $2,100 dividend per month which covers >50% of our expenses. If you’re overwhelmed by the number of holdings above, we may be able to tone it down for you. Using VEQT and XEQT in TFSA and Taxable Accounts If you’re overwhelmed by the number of holdings above, we may be able to tone it down for you. XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. Having said that, this plan isn’t set in stone and we may revisit and alter this strategy in the future. It is very unlikely, but possible, that you have 25% less after 4 years. One thing to consider is that I have only compared a year worth of data, this comparison isn’t the most scientific and may not be a true reflection of how these three all equity ETFs would perform moving forward. AA 0.00%. So our “new” new RESP strategy is to hold an all equity ETF rather than relying on XGRO for the immediate future. BMO one fund solutions Does holding all equities in RESP make sense? “Diversification is protection against ignorance.” – Warren Buffett. The five ETFs above were the only ones I found with an expense ratio below 0.10% – along with reasonable strategies and scale. For stocks, the low volume/liquidity can be a concern as it typically means a high bid-ask spread. All three ETFs have a high concentration in the North American market. HGRO has a very high exposure to tech stocks in the top 10 at 21.06%. Is VEQT a Good Investment? Here is VEQT’s top 10 market allocation. The MER would have been 0.25% without any absorptions or waivers. *As per Horizons’ site not to exceed this management expense ratio – very comparable to funds above. A 2020 Guide, Why financial independence is more important than ever, Best Canadian Dividend Stocks for 2020 -My top 10, Top Canadian Dividend ETFs (2020) - Why we don't own them, Step-By-Step Guide on How to Make a Dividend Portfolio Spreadsheet, Using Google Finance & Google Spreadsheet for dividend investment, Dividends - A Canadian Dividend Investor's Dream, Does Costco cost more? Looking at these numbers alone, XEQT seems like a better choice. I've been reading that a 80/20 split like VGRO vs 90/10 or 100/0 like VEQT … So, which all equity ETF should we consider? Barrick Gold and Facebook interchanged each other between the two all equity ETFs. cmackie wrote: ↑ XEQT is 100% equities while XGRO is about 80% equities. I am particularly interested in VEQT vs XEQT. Afterall, people usually hold ETFs over a very long term rather than trading in and out ETFs regularly. high enough to cover the cost of the underlying ETFs, whose costs are rebated to avoid double charging the investor). And, a… Below is the HGRO market allocation. A lower management fee than VEQT of 0.18%. That means the average dollar will be invested for 4 years. VEQT vs. XEQT vs. HGRO – Market Allocation Comparison, VEQT vs. XEQT vs. HGRO – Top 10 Holding Comparison, VEQT vs. XEQT vs. HGRO – Returns Comparison. The portfolio targets a long term asset allocation of at least 99% equity securities at the time of any rebalance, and the portfolio will be rebalanced semi-annually in order to seek a consistent level of risk from developed countries around the world. A 0.00%. I’d also guess HGRO to have slightly higher returns due to the higher exposures to these technology stocks. Learn more about dividends & financial independence. iShares does not disclose the turnover rate for XEQT. The dividends from the US/international portion gets taken care by the ETF already. Much like the comparisons above, there are more similarities than differences when it comes to the all-equity all-in-one options from iShares and Vanguard. Tawcan is a personal finance, financial independence retire early, and dividend & index ETF investing community, © 2014-2020 Tawcan | All Rights Reserved|. How To Purchase XEQT in Canada If you are looking for long-term capital growth and are okay with significant market swings, XEQT may work for you. It is reasonably diversified, and provides a middle of the pack return. For this comparison we will take a look at the returns between Sep 19, 2019 to Sep 25, 2020 between all three ETFs (Yahoo Finance only has HGRO closing price from Sep 19, 2019). I like to do my own analysis but I suppose sometimes I can overanalyze things. This is what Ed replied with: RESP withdrawals have an additional issue because it’s harder to delay withdrawal until your investments recover. The top five holdings are dominated by tech stocks. Subscribe to learn how you can become financially independent and live a joyful life. I like XEQT for its higher exposure to the US and international markets and no one particular sector is over-weighted. Name Symbol % Assets; Vanguard US Total Market ETF: VUN.TO: 41.57%: Vanguard FTSE Canada All Cap ETF: VCN.TO: 29.67%: Vanguard FTSE Dev AC ex Nrth Amer ETF : VIU.TO: 20.53%: … Financial Independence Retire Early Canada Interviews, Redefine Financial Independence Retire Early, how to easily outperform investment advisor & robo-advisor, Dan at Canadian Couch Potato, the low trading volume for ETFs shouldn’t be a concern, TFSA Over contribution…What to do. VEQT vs XEQT. Between VEQT and XEQT, the top 10 holdings are very similar. Therefore, it makes sense VEQT has the highest MER at 0.25% with XEQT in the middle at 0.20%, and HGRO with the lowest MER at 0.17%. For Canadians, Vanguard, iShares, and Horizons offer all equity ETFs that are very similar. From what I know XEQT has a 0.18 MER and VEQT has 0.22. Hi there, I’m Bob from Vancouver Canada. However, Dan at Canadian Couch Potato, the low trading volume for ETFs shouldn’t be a concern. This seems to defeat the purpose of holding an index ETF – holding a large amount of stocks. Facebook made it to the top 10 list. If you don’t want any Canadian stocks in your portfolio, consider XAW instead. Reply Delete. I believe the higher exposure to tech stocks can lead to higher volatility. Subscribe to get more great content like this. Or do you think that is too much overlap. Sharp eyed readers will notice that while XEQT holds 47.15% in the iShares S&P US Total Market ETF (ITOT), the US exposure is only 46.23%. However, since our kids are still quite young, it means we won’t be making withdrawals for at least 12 years. XEQT holds over 9,000 stocks but about 28% less compared to VEQT. Below is HRO’s sector exposure according to Morningstar. Given there are a number of all equity ETFs available for Canadians, which one should we pick if we go with the all equity ETF strategy? Given HGRO’s high exposure to the US market, it is not a surprise it has the lowest exposure to the ex-NAM market. Performance charts for Vanguard All-Equity ETF Portfolio (VEQT - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. I also like XEQT holds over 9,000 stocks and the top 10 holdings only make up 14.03% of the fund. There is built-in global equity diversification. In most cases, the wrapper cost will be all inclusive (i.e. Therefore, I began to wonder, is XGRO the right approach? Quarterly distributions with yield ~ 1.5%. Not to mention that none of the HGRO’s underlying index ETFs actually hold any stocks. Costco vs. Superstore vs. Walmart showdown, Alphabet: 2.69% (Class A: 1.36%, Class B: 1.33%), Vanguard US Total Market Index ETF (VUN) – 41.60%, Vanguard FTSE Canada All Cap Index ETF (VCN) – 30.30%, Vanguard FTSE Developed All Cap ex North America Index ETF (VIU) – 20.50%, Vanguard FTSE Emerging Marketing All Cap Index ETF (VEE) – 7.60%, iShares Core S&P Total US Stock (ITOT) – 47.15%, iShares MSCI EAFE IMI Index (XEF) – 23.76%, iShares S&P/TSX Capped Composite (XIC) – 23.62%, iShares Core MSCI Emerging Markets (IMEG) – 5.16%, Horizons US Large Cap Index ETF (HULC) – 32.92%, Horizons NASDAQ-100 Index ETF (HXQ) –  22.83%, Horizons INTL Developed MKTS (HXDM) – 20.83%, Horizons S&P/TSX 60 Index ETF(HXT)  – 16.28%, Horizons Euro Stoxx 50 index ETF (HXX) – 6.71%, Feb 20, 2020 – 52-week-high for most market indices, March 23, 2020 – 52-week-low for most market indices, Aug 28, 2020 –  52-week-high for the S&P 500, Financial Independence Retire Early != Success. If you don’t want any Canadian stocks in your portfolio, consider XAW instead. The fund only invests in American stocks, so it is less diversified than VEQT. Here is the sector exposure comparison between the three all equity ETFs. As you can see from the above chart, for the maximum time frame selected, the returns of VEQT and XEQT are almost similar in terms of market returns. iShares XAW is Blackrock’s all-equity portfolio, excluding Canadian investments. Meanwhile, VEQT has a higher exposure to Canadian non-tech stocks at 7.86% compared to XEQT’s 5.15%. If this is not feasible at this time do you know where I could get this information? What do you think about our new RESP strategy? XEQT. Most of these Horizons Total Return Index (TRI) ETFs utilize a synthetic structure, known as a total return swap. Therefore, it is more important to pick an all equity ETF that would fit our investment strategy. I decided to do a mix of XGRO and XBAL so we’d hold around 26% in bonds when the kids are between 10 and 15 years old. XEQT sits in the middle when it comes to these three all equity ETFs. Comparing between VEQT and XEQT, we can see that XEQT performed better. This shouldn’t come as a surprise considering VEQT’s holds 30.30% in VCN and has a higher exposure to the Canadian market. I had no idea such a structure was possible! Bonds made zero after inflation for 80 years from 1900-1982. Which one should we consider using for … Oct 12. This makes sense since HGRO holds both the US Large Cap Index and NASDAQ-100 Index and there are some overlaps in these ETFs. Since I can’t find any info on HXDM’s top 10 holdings, it is possible that some international stocks may constitute one of HGRO’s top 10 holdings. Hi, I'm looking to start index investing, and have more or less narrowed down to VFV or VEQT - looking to go 100% equities. Since publishing my analysis of all-in-one ETFs in Canada and mentioning that we are going from multi-ETFs to all-in-one ETFs for our kids’ RESPs, we have gone ahead and made isharethe changes. This is why we’re holding VCN/XAW and individual dividend stocks. A fund of 4 iShares funds with some cash. Or does it make more sense to hold some bonds in RESPs since a decade is relatively “short” when it comes to investment timelines? Before answering that question, let’s take a quick look at MER fees. BBB 0.00%. What about exposure to the ex-North American market? Unlike the other “GRO” all-in-one ETFs, HGRO is an all equity ETF and does not hold any bonds. When their investments are down, they sometimes withdraw less that year. How does XGRO compare to the all equity ETFs? VFV has done very well since inception - is it worth it to go to VEQT (or XAW for that matter) instead for the geographical diversification outside of US? XEQT or VEQT – XEQT currently yields a dividend of 3.20% quarterly. Performance charts for iShares Core Equity ETF Portfolio (XEQT - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. Why Not List More Than the Top Five? Thank you. None of the Horizons TRI ETFs that provide exposure to Canadian equities and preferred shares currently have a swap fee associated with their total return swap.”. Let’s take a look at these all equity ETFs and compare them. This would allow us to stay in mostly stocks. Which approach suits you best depends on portfolio size, relative sizes of different account types, and how much you're willing to pay for simplicity. Please note, I used the sector exposure breakdown from Morningstar so we can have a fair comparison between the three ETFs. XEQT is heavier on USA than Canadian. If we compare the three all equity ETFs, we can see that VEQT holds the highest amount of stocks. The All-in-one ETFs from iShares also follow Vanguard’s tickers, with XEQT (100% equities), XGRO (80% stocks/20% bonds), XBAL (60% stocks/40% bonds), and XCNS (40% stocks/60% bonds). The Horizons TRI ETFs that utilize total return swaps achieve tax-efficiency primarily by receiving the total return of the underlying index (before fees) – the value of the underlying index constituent distributions get reflected in the ETF’s share price and are not distributed to shareholders. “Unlike a traditional physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Horizons TRI ETFs use a synthetic structure that never buys the securities of an index directly. XAW vs VEQT is not a true apples to apples comparison, plus it’s not really fair to say VEQT is superior based on just one year’s performance. When we hold XGRO for 3 years we’d have 10% bond exposure. While doing research for writing this article, I was messaging back and forth with Robb Engen from Boomer and Echo. thanks for the breakdown. Would it be possible for you to update your Model ETF Portfolios to include returns to June 30, 2020 on after tax basis for a taxable account. Then when they are older than 15, we’d hold XBAL only and have about 40% exposure to bonds. HGRO’s net assets are also a lot lower than XEQT even though the two ETFs started only a month apart. Since the Energy sector has performed poorly in 2020, and that the Canadian market consists of a high percentage of Energy stocks, VEQT’s lower performance makes sense. Top 4 Holdings (100.00% of Total Assets) Get Quotes for Top Holdings. Between VEQT and XEQT there’s less than a 1% difference. Managing a portfolio of asset allocation ETFs will probably take up less than 20 minutes weekly of your precious time and mental energy, leaving you with more quality time to spend with family and friends. It is usually shown as a percentage of between .05% and 3%. These types of situations have to be looked at uniquely for every client. Based on the above, I believe XEQT … VEQT is an all-around all equity ETF that provides the best diversification. T1 pro scrims codm vs Xeqt. ChilliPepper. In terms of sector exposure, VEQT has somewhat a balanced exposure with Financial Services and Technology taking the lead. This age tiered approach should help stabilize the portfolio value by reducing exposures to market volatility. It is a well known fact that the Canadian market consists of a large percentage of companies in the Energy sector. The annual fees would be the following for different portfolio sizes: The MER fee differences are in the few hundred dollar range, so it’s not that significant given the size of the portfolio. In my opinion, therefore, because the total return swap forms a core part of the structure of the ETF, these fees are not likely to materially decrease in future years. Let’s compare VEQT vs. XEQT vs. HGRO and see which one is most suitable. As we can see, the fund has a large exposure to the North American market. With so many equity ETFs to choose from it might be hard to figure out the top ones to own. Depending on what interest rates look like in the next ten years or so, we may decide to allocate a bigger portion of the RESPs to bonds, or even holding in mostly cash the last few years before making withdrawals. Bonds lost nearly 50% after inflation for 40 years from 1940-1980.”. Find the latest ISHARES CORE EQUITY ETF (XEQT.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. Our current RESP plan is as below. I'm wondering if XEQT's dividend paid quarterly reinvested leads to greater return than VEQT's annual dividend reinvested? I hope they know how lucky they are. More on that in a bit. Others 0.00%. HGRO invests primarily in Horizon Total Return Index (TRI) ETFs. There’s no debate that stocks will provide higher returns over the long term compared to bonds and other safe investment vehicles like GCI’s. One of my favourite funds because it has a lower Canadian exposure than VEQT. A high level comparison between VEQT, XEQT, and HGRO. Pura end tak dekhna bohat he sahi match tha ye wala. Replies. XEQT Vs. HGRO - Tawcan tawcan.com - Tawcan. We would increase the exposure to 20% once the kids turn 18 years old. Michael James November 9, 2020 at 8:49 AM. XEQT holds over 9,000 stocks but about 28% less compared to VEQT. XEQT has a 0.18 MER and VEQT has 0.22. It also means that it is harder to buy and sell the low volume traded stocks. VEQT vs. XGRO . This is quite a high figure were it just dealing with equity trading costs! Find the latest ISHARES CORE EQUITY ETF (XEQT.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. Vanguard All-Equity ETF Portfolio seeks to provide long-term capital growth by investing primarily in equity securities. I am not sure why HGRO’s net assets are so much lower. It makes sense to consider HGRO’s fees in light of both MER + ongoing swap fee costs, resulting in total costs of 0.45% annually. This site uses Akismet to reduce spam. They are nearly always rewarded for this. XEQT also has 25% CAN equities whereas VEQT has 30. With young kids and a withdrawal timeline of more than a decade, wouldn’t it make sense to hold 100% stocks in their RESPs? Post was not sent - check your email addresses! They can do this with a part-time job and a student loan. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. During this time period there were a few interesting dates: Here are the three ETFs’ prices for the five dates we picked and the respective returns in percentage compared to the starting date. This is expected given that XEQT has a higher US exposure and VEQT has a higher Canadian exposure. Most also expect their kids to pay part of the cost in order to learn some money skills. If VEQT, XEQT, and HGRO continue to be popular, I would expect the likes of BMO and TD to create similar all equity ETFs to compete against Vanguard, iShares, and Horizons. how did the asset allocation etfs handle the market crash and recovery this year? VEQT has a 0.22% management fee (compared to 0.18% for XEQT), and a MER of 0.25% (compared to 0.20% for XEQT). in TFSA vs RRSP as the underlying funds are typically a mix of both of Canadian and US. XEQT also pays a distribution of 1.5% compared to VEQT which does not pay a distribution. I am in the exact same boat right now and trying to figure out where to invest for my kid’s RESP and was thinking of an all-equity asset allocation etf afer listening to Ed Rempel at the Canadian Financial Summit, so thank you for this analysis! If we are looking for an all equity ETF with the best diversification, VEQT is a great fit. Also, does it matter if XEQT is priced at $23 compared to VEQT's $31? In fact, you might be able to recover some money as you’d get some foreign tax credit. Based on history, the stock market has been up 89% of the time in 4-year periods with the typical total gain of 40-50%. Therefore, I would pick XEQT as the all equity ETF to hold in our kids’ RESP. There is some room to delay withdrawals. In the article, he mentioned that it makes sense to have a portfolio consisting of all equities, as stocks outperform bonds and cash over the long term. iShares XAW is Blackrock’s all-equity portfolio, excluding Canadian investments. When we look at comparing the costs of all-in-one ETFs vs robo advisors vs DIY couch potato portfolios vs mutual funds we must first understand what the acronym MER means. As you can see from the above chart, for the maximum time frame selected, the returns of VEQT and XEQT are almost similar in terms of market returns. This is my best educated guess. I think you’ll agree, it’s hard to put a price on that convenience. But this wasn’t the case. My best guess is that the entire market was down about the same amount on March 23, 2020, and not just the tech stocks. Please note, I took the sector exposure data from Morningstar so allow for an apples to apples comparison between the three all equity ETFs. In 2011 my wife and I started dividend investing with the dream of living off dividends in our 40’s. In my search for the top US dividend ETFs, I struggled to find ultra-low cost funds. Being a DIY ETF investor is not particularly hard, but up until recently, it was not particularly easy, either. Justin October 13, 2020 at 9:28 pm - Reply @John – You’re very welcome! Yup, you read that right, HGRO doesn’t hold any stocks. US Government 0.00%. The Globe and Mail. We picked iShares Core Growth ETF Portfolio (XGRO) which has an 80% equities and 20% bonds mix. A word of caution, since HGRO does not have details on the top 10 holdings, I did some calculation myself to determine the list. Reply. Afterall, Apple, Amazon, Facebook, Shopify, Nvidia and other tech stocks have done very well during the last year. I've recently come across XEQT, which has lower MER fees than VEQT (0.18 vs 0.22), and I prefer the allocations (25% Canada in XEQT vs 30% Canada in VEQT). Using VEQT and XEQT in TFSA and Taxable Accounts. The fund only invests in American stocks, so it is less diversified than VEQT. I’d be very happy if our RESPs end up greater than $250k by the time our kids start post secondary education. A showdown between all equity ETFs. Did you consider the impact on overall fees of the underlying holdings? XEQT’s top 10 holdings are slightly different compared to VEQT. There are very low ongoing money management fees to own the fund with time. Perhaps HGRO may not be for the faint of hearts? It makes sense given the large number of stocks that VEQT holds and all four indices track a large amount of stocks. VEQT is designed for investors who have an above-average risk tolerance and who are okay with a portfolio that is entirely invested in stocks. I know you did the comparison for your registered account but do you know what the tax implications would be if I held them in my non-registered account since they are made up of foreign, dividend paying and non dividend paying stocks? A fund of 4 iShares funds with some cash. A couple of questions, what do you mean your kids RESP will have 10% bond exposure for 3 years if you invest in XEQT, as it is all equity correct? For example, Apple, Microsoft, Amazon, Facebook, Alphabet, and Tesla are all in the top 10 holdings of these two indices. I would be a little hesitant picking HGRO because it is so highly concentrated in the US. Also, what will the tax look like on dividends from the US/International portion? If we compare the three all equity ETFs, we can see that VEQT holds the highest amount of stocks. Three Canadian stocks to ride a surge in global profit growth. Same discussion as VEQT vs VGRO, but with a tiny bit less home bias and less emerging markets, more USA. Just for fun, let’s compare XGRO with these three all equity ETFs. I am wondering what the difference is between the two products? For HGRO, however, a large percentage of the cost of the underlying ETF providing synthetic exposure via total return swap is the fee paid to the swap counterparty, which does NOT show up in the MER of the underlying funds and presumably will not be rebated by Horizons. It is, however, interesting to see that XGRO has performed just as well compared to VEQT during the same time period (+3.17% vs. +3.16%). Vanguard VFV is the S&P500 ETF fund offered with a low 0.08% MER. Nice article! The withholding tax on the dividends would be 15% correct? veqt vs. xeqt In this section, I will compare the market returns of VEQT and XEQT and compare the percentage gain between the two for the maximum time frame. But does holding this much bonds make sense given today’s super low interest rate environment? To gain exposure to certain indices through a total return swap, counterparties may charge the Horizons TRI ETF a swap fee (depending on the underlying asset). AAA 0.00%. It has a higher exposure to the US than VEQT and has the highest exposure to the ex-NAM market out of all three all equity ETFs that we compared. Reply. We’d pick XEQT if we want to pick an all equity ETF that is diversified outside of Canada. Because VEQT holds the largest amount of stocks and tracks large indices, it is safe to assume it has the highest amount of turnover rate (i.e. Due to the high North American exposure and high exposure in Financial Services and Technology, I was curious to find out about VEQT’s top 10 holdings. Instead, the Horizons TRI ETFs receive the total return of the relevant index by entering into Total Return Swap agreements with one or more counterparties, typically large Canadian financial institutions, which provide the ETFs with the total return of the relevant index. With that in mind, we plan to hold the following: So for three years, our RESP’s bonds exposure would be 10%. VEQT vs. XEQT vs. HGRO Equity ETFs With so many equity ETFs to choose from it might be hard to figure out the top ones to own. The top 10 holdings of HGRO consists of a lot of tech stocks. With around 1% difference between the three ETFs, I would conclude that all three of these all equity ETFs are well exposed to the Defensive Sector. Notify me of follow-up comments by email. Ed Rempel, a Canadian financial blogger, fee-for-service financial planner and tax accountant, recently examined how to easily outperform investment advisor & robo-advisor. XEQT. Will they live at home or in residence? One thing I noted is VEQT has a turnover rate of 15.9% as of June 30, 2020. In global profit growth will typically be charged a swap fee said that, this plan isn t... And XEQT in TFSA vs RRSP as the underlying ETFs, while holds... Afterall, Apple, Amazon, Facebook, Shopify, Nvidia and other tech stocks lead... A turnover rate for XEQT this information end tak dekhna bohat he sahi match tha ye xeqt vs veqt but ’. Down for you or cash right approach get some foreign tax credit subscribe learn... Per month which covers > 50 % after inflation for 40 years from age 18-22 % mix... Highly concentrated in Technology have slightly higher exposure to tech stocks in the middle when it comes to the equity! Each other between the two products not provide the HGRO ’ s compare VEQT vs. XEQT HGRO. Withdraw everything from the RESP entirely over 4 years from age 18-22 back and forth Robb..., Rosenberg on how the Pfizer vaccine has reshaped the need to everything! Xgro with these three all equity ETFs, HGRO had a higher exposure to tech stocks done! And asked him about his thoughts on doing an all equity ETF that is too overlap... The other two all equity ETF and does not technically own any stocks along with strategies. 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Below 0.10 % – along with reasonable strategies and scale this strategy a few weeks we... Markets and no one particular sector is over-weighted MER stands for management expense ratio very. As part of the underlying holdings one of these ETFs dates, it ’ sector. Own, without an advisor, by managing your own, without an advisor, by more. 2020, when the kids are still quite young, it is reasonably diversified, and provides a middle the! Wrapper cost will be invested for 4 years from 1900-1982 invested for 4 years from ”., iShares, and HGRO that the Canadian market compared to the all-equity options! Etf and does not provide xeqt vs veqt HGRO ’ s top 10 holdings only make up 14.03 % our! Morningstar so we can have a fair comparison xeqt vs veqt the two all equity ETF in your,! Fees to own shift the amount of stocks that VEQT holds the highest exposure to tech.! No re-balancing work between Canadian and U.S. and international stocks or ETFs XEQT didn ’ set... Your portfolio, you might be able to recover some money skills dekhna!, HGRO is the s & P500 ETF fund offered with a low 0.08 % MER top five holdings very. No one particular sector is over-weighted there are more similarities than differences when it comes to sector exposure and. Actually hold any stocks be making withdrawals for at least 12 years and no one particular sector is.! Tesla are not part of the ETF already an all-in-one “ all-equity ” solution the. With Financial Services and Technology taking the xeqt vs veqt on Mar 23, 2020 has here! Refresher: MER stands for management expense ratio below 0.10 % – along with reasonable strategies scale... Anything doesn ’ t go wrong with either of these Horizons total return (! Time and they certainly have created a great product with VEQT believe the higher exposure to the market! Zero after inflation for 40 years from age 18-22 into this for your kids RESP free! Rebated to avoid double charging the investor ) I ’ m missing out on I had no idea a... Seeks to provide long-term capital growth by investing primarily in Horizon total swap. Etf rather than trading in and out ETFs regularly holding an all equity ETFs, may. Doing research for writing this article, I struggled to find ultra-low cost funds a product. Secondary education we compare the three all equity ETF in your portfolio, excluding Canadian investments problem then. Comparisons above, we can see that VEQT holds the stocks directly there ’ s hard figure... So highly concentrated in the middle when it comes to these Technology are! Crash and recovery this year overall fees of the cost of the HGRO s. Compare XGRO with these three all equity ETFs have a high bid-ask spread pura end dekhna! Mostly stocks stocks directly amount of bonds we hold XEQT only then there ’ s no to... In fact, you read that right, HGRO had a higher compared. About our new RESP strategy is to hold an all equities is the only free lunch when comes. Xeqt has a higher Canadian exposure 2020 at 9:28 pm - Reply @ –! And comparing Vanguard ’ s underlying index ETFs the sector exposure, and provides a middle of all! All-Equity ” solution on their website, I would pick XEQT if we compare the three all equity ETFs choose! From age 18-22 refresher: MER stands for management expense ratio – very comparable to funds above usually as! Etf for simplicity, for my TFSA ETF investor is not particularly hard, but possible, that you 25! Canadian personal finance and dividend investing blog that chronicle my quest for independence! At $ 23 compared to XEQT ’ s super low interest rate environment $ 31 means give. On a million-dollar portfolio, excluding Canadian investments won ’ t go with! Our RESPs end up greater than $ 250k by the time of post..., we may revisit and alter this strategy a few weeks after we made the change wrapper cost be... Amazon, Facebook, Shopify, Nvidia and other tech stocks in the Energy sector along with reasonable strategies scale! From 1900-1982 term rather than relying on XGRO for the immediate future purposes... I think you ’ d be interesting to compare their returns ETF to hold an all equity.! Number of holdings above, there are very small go with one of these ETFs if hold... To Ed on Twitter and asked him about his thoughts on doing an all approach! With Financial Services and Technology given that XEQT has the lowest stocks, it... Of 4 iShares funds with some cash 1 % difference still quite young, it means won. Not provide the HGRO ’ s all-equity portfolio, you read that right, HGRO is the best, not... These all equity ETFs comparison – VEQT vs. XEQT vs. HGRO, which all equity ETFs with many. Bonds mix your kids RESP stocks doesn ’ t want any Canadian stocks in the US rather than in. This much bonds make sense given today ’ s to pay part of XEQT ’ s take look! On overall fees of the MER/management fee years old hold it in a Taxable account ( foreign... Picking HGRO because it has a higher exposure to the Energy sector nearly 50 % of total assets ) Quotes. Average dollar will be all inclusive ( i.e leads to greater return than VEQT of 0.18 % fit our strategy! Their website, I would pick XEQT as the underlying ETF cost is already being take care as of... Concentration in the time period that we examined, HGRO does not the. Quest for Financial independence and joyful life ” new RESP strategy is to hold in our kids post. Think you ’ ve already talked/written about it somewhere else, please feel free to me. I looked at uniquely for every client and recovery this year Potato, the fund time. Funds above may revisit and alter this strategy in the US go with one of my funds! Distribution of 1.5 % compared to VEQT ’ s top 10 at 21.06 % dealing. Resps end up greater than $ 250k by the ETF distribution should I with...

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