FAQ
What's the point of this site?
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To answer the question you have every time XEQT dips: what happened, and should I care? Spoiler: probably not, but it's a surprisingly good lens for understanding what is happening in the world.
How often are the updates? The data looks stale
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The XEQT Brief is updated three times on every TSX trading day, at approximately 10am, 1pm, and 5pm Eastern Time. These are called the open, midday, and close briefs respectively.
What is XEQT?
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XEQT is a Canadian ETF that gives you instant ownership in about 9,000 companies across the US, Canada, Europe, Asia, and beyond, all for a ~0.20% annual fee. Think of it as a basket that holds the world, designed to take the guessing and indecision out of investing and to serve as a complete one-fund portfolio for many passive investors.
What is an ETF?
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An ETF (Exchange-Traded Fund) is a basket of investments that trades on the stock market like a single stock. Instead of picking individual companies, a single purchase gets you a slice of everything inside it, hundreds or thousands of companies at once. With often low fees, instant diversification, and less guesswork, they can make investing simpler and more accessible.
What is the best ETF to buy in Canada?
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For many Canadians, a single globally diversified equity ETF can be a strong simple choice. XEQT is one good answer to this question: one purchase gives you ownership in roughly 9,000 companies across the world for a low fee, with no rebalancing required. It is not the only good answer, but it is one of the simplest and most well-regarded options for passive, long-term investing in Canada.
How do I buy XEQT?
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XEQT trades on the TSX under the ticker XEQT. You can buy it commission-free through brokers like Wealthsimple Trade or Questrade. Even a small amount gets you started.
Why not just VFV or the S&P 500?
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Because betting everything on one country, even the US, is still a bet. The S&P 500 has had an incredible run, but past performance is not a promise. Entire decades have passed where international markets outperformed the US. Diversification is one of the few free lunches in investing, and XEQT owns far more of the global market. Wherever growth shows up, you're already there.
XEQT vs VEQT vs ZEQT vs HEQT vs TEQT vs FEQT: what is the difference?
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All six are Canadian all-in-one global equity ETFs with very similar goals: own the world, stay diversified, and keep fees low. The differences come down to the provider and slight variations in how they weight regions and which underlying funds they use. XEQT is by iShares (BlackRock), VEQT by Vanguard, ZEQT by BMO, HEQT by Global X, TEQT by TD, and FEQT by Fidelity. All charge similarly low fees. For most investors, the choice between them comes down to preference. Any one of them can work as a sound, complete portfolio.
What is an FHSA?
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The First Home Savings Account is a Canadian registered account that combines the best of a TFSA and an RRSP specifically for first-time home buyers. Contributions are tax-deductible, like an RRSP, and withdrawals for a qualifying home purchase are tax-free, like a TFSA. You can hold investments like XEQT inside it, letting your savings grow while sheltered from tax. The annual contribution limit is $8,000, with a lifetime limit of $40,000.
Should I hold XEQT in my TFSA, RRSP, or FHSA?
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All three can work well. The right choice depends on your goals, income, and whether you're saving for a first home. XEQT inside any of them can shelter you from tax on growth, and each account has different contribution and withdrawal rules.
Why does XEQT move on any given day?
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XEQT is a global fund weighted across North America, Europe, Asia-Pacific, and Emerging Markets. When it moves, something moved somewhere in the world.
Why should I keep holding XEQT when it drops?
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Because a drop is usually not a reason to sell. XEQT's entire thesis is long-term global growth. Short-term volatility is the cost of admission.
How risky is XEQT?
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XEQT is 100% equities, meaning there are no bonds to cushion the fall. In a bad year it can drop 30% or more. The tradeoff is that equities have historically delivered higher long-term returns than lower-risk assets, but with much larger drawdowns. The risk is less that XEQT will go to zero and more that you'll panic sell at the bottom. If your time horizon is 10+ years, short-term volatility is usually noise.
Does XEQT pay dividends?
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XEQT pays quarterly distributions passed through from its roughly 9,000 underlying holdings. In registered accounts like a TFSA, distributions and growth can be sheltered from tax.
