XEQT Review: 4.5/5
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Gone are the days of buying several EFTs to build up your portfolio and rebalance them yourself.
With the introduction of all-in-one ETFs such as XEQT, you can now put all your eggs in one basket and have them automatically rebalanced by a professional manager.
For me, this is one of the best financial breakthroughs of the 21st century as I can now sleep assuring that my money is working for me through an all-in-one ETF.
To extend my experience with you, I decided to write this comprehensive and unbiased XEQT review; one of the best Canadian ETFs out there.
Against the shortcomings of most XEQT reviews out there, here I provide you with a complete picture of what this ETF is all about.
Hopefully, at the end of this XEQT review, you should be able to take the next step of buying your first ETF – be it XEQT or its alternative.
Let’s get there!
Launched on August 7, 2019, iShares Core Equity Portfolio (XEQT) is one of the all-in-one ETFs of iShares managed by Black Rock.
iShares Core ETF Portfolios are easy to use and one-basket portfolios that assist investors in achieving their long-term investment objectives.
Each ETF portfolio follows a strategic asset allocation strategy to assist investors with varying investment objectives and risk profiles.
Of all the five all-in-one ETFs of iShares, only XEQT has a 100% equity allocation.
|iShare ETF||Equity Allocation|
What is XEQT ETF?
XEQT is an all-in-one-in-one ETF managed by Balco Rock that provides long-term capital growth to investors through investing in 100% stock.
However, from time to time, XEQT invests in a small amount of cash or cash equivalents.
This ETF portfolio also provides investors with diversification across different countries and sectors.
XEQT stock is suitable for both novice and seasoned investors and can be held in registered and unregistered accounts.
As you continue reading, you will learn more about what XEQT entails, such as its objective, pros, cons and more.
XEQT ETF Investment Objective
The investment objective of XEQT stock is simply to provide investors with long-term capital growth.
To this end, XEQT invests 100% in equity securities with limited exposure to cash or cash equivalents.
Once that’s done, the rest is handled by Black Rock professional managers, who are one of the industry’s experts in portfolio management.
Who Can Buy XEQT ETF?
Black Rock has no restriction on who can buy XEQT ETF. Virtually everyone can buy this ETF – be it a novice or experienced investor.
However, based on my experience, XEQT is more suitable for:
- Investors looking for long-term capital growth.
- Those with low-medium risk tolerance.
- Investors that want 100% exposure on equity securities.
- Those looking for global diversification.
Are you one of them? Whether you’re sure about your qualification or not, continue reading to find out how to make an informed decision.
XEQT ETF Key Facts
As of May 21, 2021, here are the key facts about iShares Core Equity Portfolio (XEQT):
- Net Assets: CAD 469,165,114
- Exchange: Toronto Stock Exchange
- MER: 0.20%
- Management Fee: 0.18%
- Price to Earnings (TTM) Ratio: 24.77
- Price to Book Ratio: 2.66
- Number of Holdings: 4
- Number of Underlying Holdings: 9270
- Minimum Investment: 91
These were the major things I considered before buying XEQT. But I later learnt that I should’ve looked beyond these facts.
In what follows, you will learn in detail what you must consider before buying your XEQT.
XEQT ETF: Pros and Cons
Here I explore both the good and ugly sides of XEQT based on my personal experience:
- Global diversification
- Stress-free regular rebalancing
- Professional portfolio management
- Low fee
- Easy to buy and sell
- Zero exposure to fixed-income securities
- High volatility ( with 100% stock holdings)
Nothing more, nothing less! Continue reading to have a better understanding of XEQT’s pros and cons.
XEQT ETF Return/Performance
Despite its limited historical performance, XEQT has had an attractive performance in less than 2 years of existence compared to other ETFs out there.
As of April 30, 2021, the ETF has generated a 7.22 1-year return with a 30.14 cumulative return since inception (August 7, 2019).
Note: The above performance does not guarantee future performance.
XEQT Dividend Yield
Just as its attractive returns, the XEQT dividend yield is also attractive to both beginner and experienced investors.
As of May 21, 2021, XEQT has the following dividend yield profile:
- Distribution Yield: 1.54 %
- 12-Month Trailing Yield: 1.72%
- Dividend schedule: Quarterly
Confession time: XEQT dividend yield was my major call to action to this great ETF. There are not many ETFs that can guarantee the same dividend yield.
XEQT ETF Asset Allocation
As you already know, XEQT aims to provide long-term capital growth to investors by investing in 100% equities.
However, as of the time of writing this review, XEQT has the following asset allocation:
- Stock: 99.76 %
- Cash and/or Derivatives: 0.24%
XEQT ETF Holdings
In order for XEQT to manage its funds effectively, it allocates them into four underlying ETFs and two cash groups.
As of May 21, 2021, XEQT has the following stock holdings:
|4.81||ISHARES CORE MSCI EMERGING MARKETS|
|23.43||ISHARES MSCI EAFE IMI INDEX|
|24.91||ISHARES S&P/TSX CAPPED COMPOSITE|
|46.62||ISHARES CORE S&P TOTAL U.S. STOCK|
Note: The above allocations are subject to change from time to time.
XEQT ETF Geographic Allocation
As a globally diversified portfolio, XEQT has international exposure across different countries.
As of May 21, 2021, XEQT has the following 10 top geographic allocations:
Note: XEQT geographic allocations can change from time to time.
XEQT Top Holdings
As of April 30, 201, XEQT has the following aggregate underlying holdings:
|AMAZON COM INC||1.63|
|ROYAL BANK OF CANADA||1.47|
|SHOPIFY SUBORDINATE VOTING INC CLA||1.43|
|FACEBOOK CLASS A INC||0.86|
|BANK OF NOVA SCOTIA||0.83|
|CANADIAN NATIONAL RAILWAY||0.83|
XEQT ETF Fees
Here is my second confession: XEQT fees lured me to the bank.
When I compared the fees of XEQT with the fees of mutual funds, I didn’t think twice.
Here’s a picture of what I’m talking about:
- Management Expense Ratio (MER): 0.20%
- Management Fee: 0.18%
XEQT’s 0.18% management fee and 0.20% MER make it a cost-effective investment platform.
Although XEQT’s fee is higher compared to the MER of individual ETFs. However, it has one of the lowest fees in the industry.
Also, you don’t have to worry about rebalancing your portfolio with XEQT. So the fee is worth it.
My XEQT Review – My 5-Star Rating
When determining whether or not to buy any all-in-one ETF, three factors should come to your mind. These are:
- Ease of buying and selling
- Dividend yield
With the application of the above factors, I give XEQT 4.5 stars out of 5 stars based on my personal experience.
Here’s how I determined that:
|Management Expense Ratio (MER)||*****|
|Dividend Yield||**** (4.5)|
|Ease of Use||**** (4.3)|
XEQT Review: What Only a Few are Talking About
It’s time to let the cat out of the bag by revealing to you the potential of XEQT.
As someone that has used XEQT for about a year, I must be frank to tell you that this ETF is ideal for you compared to other ETFs if you’re looking for 100% exposure on equities.
Based on my experience, the diversification of XEQT and the dividend yield is something that should attract both novice and experienced investors.
Also, due to the composition of XEQT, it has lower fees compared to the fees of Robo-advisors mutual funds. This is a great plus.
However, while you may be excited by XEQT’s lower fee to the bank, that feeling may not last for long. In just a decade, the story may be different.
As a result of compounding results, you may be charged higher fees in the future. However, this is common to all all-in-one ETFs.
Additionally, if you are not disciplined enough, your investment behaviour will have a negative impact on your return, compounding your management fee.
Just like every other investment, XEQT is not risk-free. It is entirely dependent on stock fluctuations.
If this is something you can afford, you can proceed to the following stage and learn about how to buy your XEQT or jump to the next stage to learn about one of the major alternatives to XEQT.
How to Buy XEQT ETF
Buying XEQT stock doesn’t involve a complicated process. It is as simple as identifying the means you want to use and taking the next step of buying your stock.
When looking for cost-effective means to buy your XEQT in Canada, you have two major options: Wealthsimple Trade and Questrade.
- Wealthsimple Trade is a zero-commission online broker that allows you to buy not only stocks but including bonds without a fee. Create a Wealthsimple Trade account to buy your XEQT today.
- Questrade is also a zero-commission online broker that allows you to buy an ETF without a fee except for a small selling fee of $4.95 to $9.95. Create your Questrade account to buy your XEQT today.
XEQT vs VEQT: Which to Choose?
Vanguard All-Equity ETF Portfolio (VEQT) is one of Vanguard Canada’s all-in-one ETFs that share a similar investment objective with iShares Core Equity Portfolio (XEQT).
Both ETF portfolios were established in 2019, resulting in their limited but appealing historical performance.
Just as XEQT has a 100% equity allocation, VEQT has the same.
However, the two ETFs differ in fees. XEQT has a relatively low management fee of 0.18% and a low MER of 0.20%. On the other hand, VEQT has a comparatively higher management fee of 0.22% and a higher MER of 0.25
Additionally, XEQT has a low-to-medium risk indicator carrying both novice and seasoned investors along, while VEQT has a medium risk indicator favouring those with above-average risk tolerance.
Overall, these two ETFs are great and stand by what they offer. You can’t make a wrong choice with any of them.
To learn more about VEQT stock, check out my VEQT comprehensive review here.
Over to You
There you have it! XEQT stock is one of the top ETFs you should consider when making an investment decision.
By now, you should be confident about your stance on whether or not to buy XEQT.
The above is just a picture of my personal experience, hoping that XEQT can also work for you and recommend it to others.
However, don’t be in a rush to invest your money in a portfolio that’s not aligned with your investment objective, risk tolerance and time horizon.
If XEQT really aligns with your needs, take the next step of buying it today. If not, consider VEQT or another all-in-one ETFs out there.
All the best.
Frequently Asked Questions and Answers about XEQT ETF
Is XEQT a good ETF?
Yes, XEQT is a good ETF in the sense that it is a low-cost alternative to mutual funds and Robo-advisors advisors.
Besides having a global diversification and growing dividend yield, XEQT is also easy to buy and sell/.
How Risky is XEQT ETF?
XEQT is not as risky as the other all-in-one ETFs out there.
With a low-to-medium risk indicator, it’s suitable for both novice and seasoned investors that are comfortable with significant swings in the value of their portfolios (due to 100% stock allocation).
Does XEQT Rebalance?
XEQT doesn’t require you to rebalance your portfolio. That is handled automatically by professional portfolio managers.
As a result, you can use your time, efforts and money to focus on other aspects of your life.
Does XEQT Give Dividends?
Yes, XEQT provides dividends to its investors. Even as a new portfolio that was established on August 7, 2019, XEQT provides a competitive dividend yield of 1.74% (as of May 21, 2021).
Have more questions on XGRO stock? Feel free to drop them in the comment section.
XEQT ETF Review
Product Name: XEQT ETF
Product Description: Launched on August 7, 2019, iShares Core Equity Portfolio (XEQT) is one of the all-in-one ETFs of iShares managed by Black Rock. iShares Core ETF Portfolios are easy to use and one-basket portfolios that assist investors in achieving their long-term investment objectives.