iShares XEQT Review: A 100% Equity ETF Portfolio (2024) (2024)

Looking for an easy way to invest in worldwide equities?

Then you should check out all-in-one portfolios. It’s one of the easiest and cheapest ways to invest in a wide array of stocks around the world.

iShares XEQT is Blackrock’s all-in-one equity portfolio that has been gaining rapidly in popularity.

Check out this iShares XEQT review to learn if it’s right for you.

Our Verdict

9.6

BlackRock iShares XEQT

All-In-One ETF Portfolio

XEQT is an100% equity all-in-one ETF portfolio that rebalances itself at an extremely low MER.

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Table of Contents show

iShares XEQT, as a 100% equity ETF portfolio, offers a hands-off approach for investors. As opposed to being active in selecting individual stocks, investing in XEQT means gaining exposure to a broad range of equities from various countries and sectors.

This strategy not only aims for worldwide diversification but also simplifies the investment process for those who want to avoid the complexities and potential pitfalls of stock picking.

The ETF portfolio consists of several other iShares ETF portfolios.

XEQT.TO is currently trading at close to $28.35.

XEQT Key Facts

As of October 05, 2023:

  • Ticker Symbol:XEQT.TO
  • Exchange:Toronto Stock Exchange
  • Assets Under Management:$1.98 Billion
  • MER:0.20%
  • 12-Month Trailing Yield:1.98%
  • Currency Traded:CAD
  • Number of Underlying Stocks: 9670
  • Registered Accounts Availability: Yes

Who Should Invest

iShares XEQT is ideal for:

  1. Long-term Investors: Given its 100% equity nature, this ETF portfolio is best suited for investors with a long-term horizon who can weather potential short-term market volatility.
  2. Diversification Seekers: Those aiming for exposure to global equities without the hassle of selecting individual stocks or countries.
  3. Hands-off Investors: If you’re looking for a ‘set-it-and-forget-it’ type of investment, this self-rebalancing ETF is perfect.
  4. Cost-Conscious Investors: With its low MER, XEQT offers a cheaper alternative to mutual funds and robo-advisors.
  5. Risk Takers: As with all equity portfolios, there’s an inherent risk. Investors should be comfortable with the potential of market downturns, knowing they often rebound over the long run.

XEQT has a management fee of 0.18% and an MER of 0.20%.

While the MER is higher than what you would get if you purchased individual ETFs, the higher MER comes with several benefits:

  • You don’t need to spend time rebalancing the ETFs in the portfolio because it is automatically realigned to match your goals.
  • The MER is much lower than mutual funds and lower than robo-advisors.

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XEQT is among the relatively newer funds issued by BlackRock. The fund’s inception was on August 7, 2019.

Here is a chart showing the growth of a hypothetical $10,000 since inception:

iShares XEQT Review: A 100% Equity ETF Portfolio (2024) (2)

Here is the performance as of September 30, 2023:

1y3y5y10yIncept.
Total Return (%)16.59-8.058.35

Go to the Blackrock website for real-time performance numbers of XEQT.

As is typical of most all-in-one ETFs, the dividend yield is not very high. As of October 06, 2023:

  • 12-month trailing yield: 1.98%
  • Distribution yield: 1.41%
  • Dividend schedule: Quarterly

The ETF portfolio invests in a basket of ETFs that, in turn, invest entirely in stocks. By investing primarily in four underlying ETFs, XEQT provides investors with low-cost exposure to over 9,000 individual stocks trading on several exchanges worldwide.

About 45% – 50% of its entire focus is on US equity securities. With 20% – 25% of it is exposed to Canadian equity securities, and the rest are focused on stocks in emerging markets and international holdings

It has $1.088 Billion in total assets under management as of June 30, 2022, which shows the tremendous growth and popularity of these all-in-one ETF portfolios.

As of October, 2023:

TickerNameSectorWeight (%)
ITOTISHARES CORE S&P TOTAL U.S. STOCKFinancials46.66
XEFISHARES MSCI EAFE IMI INDEXOther24.40
XICISHARES S&P/TSX CAPPED COMPOSITEFinancials23.62
XECISHARES MSCI EMERGING MARKETFinancials4.97
CADCAD CASHCash and/or Derivatives0.25
USDUSD CASHCash and/or Derivatives0.10

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XEQT Asset Allocation

In this section of my iShares XEQT review, I would typically tell you about the breakdown of its total funds between fixed-income and equity securities.

However, iShares XEQT invests primarily in equities and has some exposure to cash or cash equivalents. As you can see, it invests almost in all equity and an insignificant portion to cash:

As of July 11, 2022:

TypeFund
Equity99.64
Cash and/or Derivatives0.36
iShares XEQT Review: A 100% Equity ETF Portfolio (2024) (3)

XEQT Geographical Breakdown

iShares XEQT diversifies across several countries, primarily focusing on the US and Canada. The remaining exposure is divided between Japan, the UK, Switzerland, France, China, Germany, Australia, and the Netherlands.

I will show you its exposure breakdowns to equity securities based on the geography as of July 11, 2022.

CountryPercentage (%)
United States45.72
Canada23.07
Japan5.94
United Kingdom3.69
France2.57
Switzerland2.46
Australia1.95
Germany1.87
China1.53
Netherlands1.10
Cash and/or Derivatives0.70
Other9.38

XEQT Top Holdings

XEQTs top ten holdings consist primarily of companies based in the US and in Canada. XEQT is a fund of funds, meaning it invests in several ETFs. Note that because of the huge number of stocks in this fund, the top ten don’t amount to that much of the total value of the fund.

Here is a breakdown of its underlying holdings for the top ten securities. Tech is heavily represented, as are financials:

TickerNameWeight (%)Sector
AAPLAPPLE INC2.94Information Technology
MSFTMICROSOFT CORP2.58Information Technology
RYROYAL BANK OF CANADA1.39Financials
AMZNAMAZON COM INC1.30Consumer Discretionary
NVDANVIDIA CORP1.29Information Technology
TDTORONTO DOMINION1.24Financials
SHOPSHOPIFY SUBORDINATE VOTING INC CLA0.89Ecommerce
GOOGLALPHABET INC CLASS A0.86Communication
CPCANADIAN PACIFIC RAILWAY LTD0.82Industrials
ENBENBRIDGE INC0.79Energy

XEQT Sector Weighting

iShares XEQT is diversified across various sectors of the economy, with a heavy emphasis on tech and financial services.

Here is a breakdown of iShares XEQT sector weightings as of October 06, 2023:

SectorsInvestment%
Basic Materials6.07
Consumer Cyclical9.31
Financial Services19.08
Real Estate3.59
Communication Services6.87
Energy7.76
Industrials11.27
Technology15.34
Consumer Defensive6.68
Healthcare10.38
Utilities3.62

XEQT is a low-to-medium-risk ETF:

iShares XEQT Review: A 100% Equity ETF Portfolio (2024) (4)

iShares XAW is another all-in-one ETF portfolio offered by BlackRock iShares. It consists of several BlackRock ETFs that focus on equities. The difference is that it does not include any Canadian stocks in its holdings. You can choose iShares XAW if you do not want any Canadian stocks in your portfolio.

VGRO is Vanguard’s Growth ETF portfolio. It consists of several ETFs offered by Vanguard. The primary difference between XEQT and VGRO is that VGRO offers you a more conservative option. It has an 80/20 split between equity and fixed-income securities.

Read my full VGRO review here.

How do All-In-One Portfolio’s Work

All-in-one ETFs are essentially a portfolio of several ETFs designed to make diversified and passive investing easier for investors.

Before all-in-one ETFs came around, it was much more difficult to make an ETF portfolio. You would have to purchase several ETFs yourself and rebalance them to align with your investment goals and risk tolerance based on each ETF’s performance.

You can find out more details about all-in-one ETFs in my list of the best all-in-one ETFs in Canada.

XEQT is an excellent investment, but a lot of people aren’t using it correctly as they are choosing to invest their entire account using just this ETF.

Most people can’t handle the risk of their entire portfolio being 100% equities, as this can expose you to potential heavy losses in one year during a crisis.

A lot of investors combine XEQT with a fixed-income ETF to get their proper asset allocation. Here’s a full breakdown of fixed-income ETFs in Canada.

If you aren’t sure about what your proper asset breakdown should be between fixed-income and equities, read this article on how to start investing.

The cheapest way to buy ETFs is from discount brokers. My top choices in Canada are:

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Questrade

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To learn more, check out my full breakdown of thebest trading platforms in Canada.

Conclusion

It’s never been easier to invest in ETFs, and iShares XEQT shows us that you can invest in thousands of stocks at a very reasonable price.

It’s an excellent ETF and will be a mainstay in the Canadian region for quite some time, but learn how to use it correctly by combining it with fixed-income ETFs.

Check out the other iShares all-in-one ETF portfolios here.

iShares XEQT Review: A 100% Equity ETF Portfolio (2024) (2024)

FAQs

Is XEQT a good stock to buy? ›

Bottom line. All in all, the XEQT ETF is a great way to make a low-cost investment for instant global diversification. You'll have a team of professionals providing you with a highly liquid option that trades in real time. It's automatically rebalanced, and you can invest at any time.

Is XEQT 100% equity? ›

Why XEQT ? 1. A simple and efficient way to gain exposure to a portfolio of ETFs that is broadly diversified across regions, in one convenient package. The portfolio targets a strategic asset allocation of 100% equity.

What is the most safe stock to invest in? ›

Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.

Is 4% return a good investment? ›

General ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%. Return on Stocks: On average, a ROI of 7% after inflation is often considered good, based on the historical returns of the market.

Is XEQT diversified? ›

In summary, the XEQT provides diversified exposure to a variety of equity-based assets within an accessible ETF structure.

Do dividend ETFs actually pay dividends? ›

ETFs pay dividends earned from the underlying stocks held in the ETF. An ETF that receives dividends must pay them to investors in cash or additional shares of the ETF. Dividends may be taxed at the long-term capital gains rate or the investor's ordinary income tax rate.

How often do dividend ETFs pay? ›

Dividend-paying exchange-traded funds (ETFs) have been growing in popularity, especially among investors looking for high yields and more stability from their portfolios. As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months.

How much dividend payout is good? ›

So, what counts as a “good” dividend payout ratio? Generally speaking, a dividend payout ratio of 30-50% is considered healthy, while anything over 50% could be unsustainable.

Is XEQT safe long term? ›

By investing in XEQT, you're essentially placing a long-term bet on the global stock market's upward trajectory. Considering the historical growth of global markets, this is one of the safest bets you can make in investing.

Is XEQT high risk? ›

Risk Rating

BlackRock has rated the volatility of this ETF as “ Medium ”. This rating is based on how much the ETF's returns have changed from year to year.

Is XEQT better than VEQT? ›

iShares Core Equity ETF Portfolio (XEQT.TO) has a higher volatility of 3.44% compared to Vanguard All-Equity ETF Portfolio (VEQT.TO) at 3.22%. This indicates that XEQT. TO's price experiences larger fluctuations and is considered to be riskier than VEQT.TO based on this measure.

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