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. Given HGRO’s high exposure to the US market, it is not a surprise it has the lowest exposure to the ex-NAM market. I’m not exactly sure why. VEQT Market price return -0.74% -1.36% 3.21% — — 7.56% VEQT Net asset value (NAV) return -0.70% -1.22% 3.25% — — 7.62% †The management expense ratio (MER) is the MER as of March 31, 2020, including waivers and absorptions and is expressed as an annualized percentage of the daily average net asset value. Vanguard has been managing ETFs for a very long time and they certainly have created a great product with VEQT. 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. I’d be very happy if our RESPs end up greater than $250k by the time our kids start post secondary education. in TFSA vs RRSP as the underlying funds are typically a mix of both of Canadian and US. Between VEQT and XEQT there’s less than a 1% difference. Yup, you read that right, HGRO doesn’t hold any stocks. What do you think about our new RESP strategy? Comparing between VEQT and XEQT, we can see that XEQT performed better. Three Canadian stocks to ride a surge in global profit growth. XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. A showdown between all equity ETFs. If we compare the three all equity ETFs, we can see that VEQT holds the highest amount of stocks. In fact, you might be able to recover some money as you’d get some foreign tax credit. However, since the fund only holds EFTs that obtain synthetic exposure via total return swap, we can infer that the TER is primarily composed of the swap fee associated with those transactions. 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). You are going to withdraw the RESP entirely over 4 years from age 18-22. Vanguard VFV is the S&P500 ETF fund offered with a low 0.08% MER. For stocks, the low volume/liquidity can be a concern as it typically means a high bid-ask spread. Hi Albert, XEQT didn’t exist when I made my decision to switch to VEQT. Or does it make more sense to hold some bonds in RESPs since a decade is relatively “short” when it comes to investment timelines? Given how poorly the Energy sector has performed lately, it is slightly worrisome to see VEQT with the highest exposure in the Energy sector. iShares continues to give a little more weight to the USA exposure over the Canadian side of things, with virtually equal weighting given to the international scene. The five ETFs above were the only ones I found with an expense ratio below 0.10% – along with reasonable strategies and scale. 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). The dividends from the US/international portion gets taken care by the ETF already. 100% equities. Michael James November 9, 2020 at 8:49 AM. So, which all equity ETF should we consider? Since these technology stocks are known for their high betas, I would assume that HGRO may have higher volatility compared to the other two all equity ETFs. 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%. If we hold XEQT only then there’s no exposure to bonds. VEQT vs. XEQT . And, a… Royal Bank, TD, and Bank of Nova Scotia are part of the top 10, which demonstrates the strength of the Canadian banks. VEQT vs. XGRO . VEQT is heavier on Canadian markets. 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. Learn how your comment data is processed. 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. iShares does not disclose the turnover rate for XEQT. VEQT vs VFV. Does holding all equities in RESP make sense? If you’re overwhelmed by the number of holdings above, we may be able to tone it down for you. There has been an 11% chance of a loss after 4 years with the worst loss being 6.8% per year or 25% in total. BMO one fund solutions Another thing is that XEQT has 25% into Canadian equities whereas VEQT has 30 here. The MER would have been 0.25% without any absorptions or waivers. Here is VEQT’s top 10 market allocation. Your kid is 16. “Diversification is protection against ignorance.” – Warren Buffett. This age tiered approach should help stabilize the portfolio value by reducing exposures to market volatility. I also like XEQT holds over 9,000 stocks and the top 10 holdings only make up 14.03% of the fund. I was expecting HGRO to have a much bigger loss on Mar 23, 2020, when the overall market was at 52-week-low. As a result, the exposure to these technology stocks are inflated. My main concern with HGRO is the total return swap structure that Horizons use. It is possible that Canadians simply don’t like the total return swap set up that Horizons utilitize for these TRI index ETFs. 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. Since HGRO does not actually hold any stocks, it is not possible to determine the top 10 holdings. Robb wasn’t sure if the CRA has done anything on this yet, however, this could be a potential threat for investors holding Horizon TRI ETFs or swap structured funds. VEQT vs VFV. The only non-tech stocks are Royal Bank and TD which add up to merely 2.27%. 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. 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. In practice for our clients, they don’t really know exactly what education will cost. I think there are still benefits. Before answering that question, let’s take a quick look at MER fees. . You can do it on your own, without an advisor, by managing your own brokerage account. iShares continues to give a little more weight to the USA exposure over the Canadian side of things, with virtually equal weighting given to the international scene. A wide variety of high quality photos including abstract, city and architecture, fashion, food, landscapes and more Investing. XEQT has less holdings at 9000, while VEQT has 12,500. XEQT also pays a distribution of 1.5% compared to VEQT which does not pay a distribution. B 0.00%. More on that in a bit. If we lump Consumer Defensive, Healthcare, and Utilities together as part of the Defensive sectors, XEQT takes the lead at 21.69%, VEQT in second at 20.46%, and HGRO in third at 20.37%. VEQT is an all-around all equity ETF that provides the best diversification. HGRO has the lowest MER and has a high concentration on the Tech sector. 1. This is quite a high figure were it just dealing with equity trading costs! Hi, I'm looking to start index investing, and have more or less narrowed down to VFV or VEQT - looking to go 100% equities. Tawcan is a personal finance, financial independence retire early, and dividend & index ETF investing community, © 2014-2020 Tawcan | All Rights Reserved|. But does holding this much bonds make sense given today’s super low interest rate environment? Also, XEQT holds multiple ETFs, while VEQT holds the stocks directly. 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. Quarterly distributions with yield ~ 1.5%. Due to the higher concentration of tech stocks, it is not a surprise to see HGRO having a higher overall return compared to VEQT and XEQT in the same time period. However, Dan at Canadian Couch Potato, the low trading volume for ETFs shouldn’t be a concern. This is what Ed replied with: RESP withdrawals have an additional issue because it’s harder to delay withdrawal until your investments recover. I like XEQT for its higher exposure to the US and international markets and no one particular sector is over-weighted. HGRO has a very high exposure to tech stocks in the top 10 at 21.06%. For Canadians, Vanguard, iShares, and Horizons offer all equity ETFs that are very similar. Therefore, it is more important to pick an all equity ETF that would fit our investment strategy. Subscribe to learn how you can become financially independent and live a joyful life. xeqt vs. veqt VEQT refers to the Vanguard All-Equity ETF Portfolio, which also “seeks to provide long-term security by investing primarily in equity securities”. 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? Here is an example. 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? BMO one fund solutions 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. VEQT vs XAW. 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. I've been reading that a 80/20 split like VGRO vs 90/10 or 100/0 like VEQT … 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. HGRO certainly has enticing fees but the idea of not actually owning anything doesn’t sound ideal to me. If investments are down a lot, we would look for methods to stay invested until there is a recovery. A high level comparison between VEQT, XEQT, and HGRO. XEQT iShares Core Equity ETF Portfolio NAV as of Dec 4, 2020 CAD 23.41 52 WK: 15.77 - 23.41 1 Day NAV Change as of Dec 4, 2020 0.11 (0.45%) Overview; Performance; Key Facts; Holdings; Exposure Breakdowns; Listings; Literature; Overview. Now, let us compare the market returns of VEQT vs. XGRO … These types of situations have to be looked at uniquely for every client. A word of caution, since HGRO does not have details on the top 10 holdings, I did some calculation myself to determine the list. how did the asset allocation etfs handle the market crash and recovery this year? Why XEQT? With this RESP all-in-one ETF strategy, from 0-10 years, we’d hold around 80% in equities and 20% in bonds. Being a DIY ETF investor is not particularly hard, but up until recently, it was not particularly easy, either. For us we’d always DRIP whenever we’re eligible. For this analysis, I looked at the top 10 holdings for HULC, HXQ, HXT, then calculated the corresponding percentages accordingly. Reply. 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. For most, all equities is the best, but not for everybody. XEQT sits in the middle when it comes to these three all equity ETFs. Diversification is the only free lunch when it comes to investing. 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