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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Pros

  • Easy to use and purchase
  • Provides worldwide diversification
  • Much lower fees than mutual funds
  • Highly liquid
  • No need for rebalancing

Cons

  • Some might think it is too heavily American weighted

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

What are the best ETFs for 2024? ›

Best ETFs as of April 2024
TickerFund name5-year return
SMHVanEck Semiconductor ETF35.02%
SOXXiShares Semiconductor ETF30.70%
XLKTechnology Select Sector SPDR Fund24.57%
IYWiShares U.S. Technology ETF24.09%
1 more row
Mar 29, 2024

What is the average return of XEQT? ›

Fund Returns
Row HeadingReturn
1 MthYTD
Fund3.25%9.58%
Benchmark2.94%10.27%
Category Average2.78%9.49%
2 more rows

Is XEQT 100% equity? ›

The ETF will be managed in accordance with a long-term strategic asset allocation strategy of approximately 100% equity exposure.

Is heqt ETF a good investment? ›

HEQT uses a ladder of put-spread collars to hedge downside exposure and has outperformed the S&P 500 in 2022. The fund may be suitable for investors who want protection from 5-20% drawdowns and are willing to trade away some upside potential.

What is the best ETF for beginners in 2024? ›

An ETF focused on the broader market is best for beginners. Top options include the S&P 500-focused Vanguard 500 ETF or the even broader Vanguard Total Stock Market ETF. They both own hundreds of stocks and have low expense ratios.

What is the best-performing asset in 2024? ›

Barron's Ben Levisohn, Andrew Bary and Elizabeth O'Brien discuss the faltering stock market on 'Barron's Roundtable. '

Does XEQT pay dividends? ›

Last dividend for ISHARES CORE EQUITY ETF (XEQT.TO) as of April 27, 2024 is 0.09 CAD. The forward dividend yield for XEQT.TO as of April 27, 2024 is 1.24%. Average dividend growth rate for stock ISHARES CORE EQUITY ETF (XEQT.TO) for past three years is 9.90%.

Is XEQT a growth stock? ›

Instrument Name Ishares Core Equity ETF (XEQT-T)

The iShares Core Equity ETF Portfolio seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by BlackRock Canada or an affiliate that provide exposure to equity securities.

Why do people like XEQT so much? ›

Why XEQT? 3. A low cost fee structure that allows investors to keep more of what they earn. Management fee of 0.18% includes all underlying ETF management fees.

Why is everyone buying XEQT? ›

Overall, with its portfolio of more than 9,000 stocks, XEQT provides extensive diversification, making it an excellent option for investors looking to spread their risks.

Is 100% equity too risky? ›

An internationally diversified portfolio of stocks turned out to be the least risky strategy, both before and after retirement, even though a 100% stock portfolio did expose couples to the greatest risk of a drop in wealth that may be temporary or last several years.

What is the ETF with the highest return? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
QQQInvesco QQQ Trust Series I18.12%
UPROProShares UltraPro S&P50017.93%
SSOProShares Ultra S&P 50017.86%
IGMiShares Expanded Tech Sector ETF17.77%
93 more rows

What is the most profitable ETF to invest in? ›

7 Best ETFs to Buy Now
ETFAssets Under ManagementExpense Ratio
Vanguard Information Technology ETF (VGT)$70 billion0.10%
VanEck Semiconductor ETF (SMH)$16.3 billion0.35%
Invesco S&P MidCap Momentum ETF (XMMO)$1.6 billion0.34%
SPDR S&P Homebuilders ETF (XHB)$1.8 billion0.35%
3 more rows
Apr 3, 2024

What is the highest paying ETF? ›

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
AAPBGraniteShares 2x Long AAPL Daily ETF24.26%
TSDDGraniteShares 2x Short TSLA Daily ETF22.56%
RYSEVest 10 Year Interest Rate Hedge ETF22.10%
FLJHFranklin FTSE Japan Hedged ETF Franklin FTSE Japan Hedged Fund21.84%
93 more rows

What are the best stocks to invest in 2024? ›

*Based on current CFRA 12-month target prices.
  • Nvidia Corp. (NVDA) ...
  • Alphabet Inc. (GOOG, GOOGL) ...
  • Meta Platforms Inc. (META) ...
  • JPMorgan Chase & Co. (JPM) ...
  • Tesla Inc. (TSLA) ...
  • Mastercard Inc. (MA) ...
  • Salesforce Inc. (CRM) ...
  • Advanced Micro Devices Inc. (AMD)
5 days ago

What is the best ETF to invest in right now? ›

7 Best Long-Term ETFs to Buy and Hold
ETFAssets Under Management10-Year Annualized Return
iShares Core S&P Mid-Cap ETF (IJH)$85 billion9.9%
Invesco QQQ Trust (QQQ)$259 billion18.6%
Vanguard High Dividend Yield ETF (VYM)$55 billion10.1%
Vanguard Total International Stock ETF (VXUS)$69 billion4.5%
3 more rows
Apr 24, 2024

What is the best mutual fund to invest in in 2024? ›

Best-performing U.S. equity mutual funds
TickerName5-year return (%)
SSAQXState Street US Core Equity Fund16.88%
PBFDXPayson Total Return16.73%
FGRTXFidelity Mega Cap Stock16.52%
STSEXBlackRock Exchange BlackRock16.27%
3 more rows
Mar 29, 2024

What is the best performing ETF in last 5 years? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
IWLiShares Russell Top 200 ETF14.44%
RSPTInvesco S&P 500 Equal Weight Technology ETF14.42%
CALFPacer US Small Cap Cash Cows 100 ETF14.38%
SPYGSPDR Portfolio S&P 500 Growth ETF14.36%
93 more rows

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