Compare
VEQT × the rest

The verdict

Point by point, who wins.

6 criteria · Reviewed quarterly

VFV has been the better performer recently: the S&P 500 has been on a historic run. But VEQT is the more resilient long-term choice. This comes down to whether you believe US dominance is permanent or cyclical.

  1. Recent performanceVFV has significantly outperformed over the past 5 years, driven by US large-cap tech. This is a fact, not a prediction: past performance doesn't guarantee future results.VFV
  2. Geographic diversificationVEQT holds 13,000+ stocks across 50+ countries. VFV holds 500 US companies. During the US 'lost decade' (2000–2009), international diversification was the difference between flat returns and meaningful growth.VEQT
  3. Cost (MER)VFV charges 0.09%, less than half of VEQT's ~0.20%. On a $100K portfolio, that's a ~$110/year difference. Real, but small relative to the diversification question.VFV
  1. Currency riskVFV is 100% exposed to USD/CAD fluctuations. VEQT's ~31% Canadian allocation provides a natural hedge. When the Canadian dollar strengthens, VFV holders feel it.VEQT
  2. Concentration riskVFV's top 10 holdings make up ~35% of the fund, heavily weighted toward US mega-cap tech. VEQT spreads risk across 13,000+ stocks, sectors, and economies.VEQT
  3. Canadian tax efficiencyVEQT's Canadian equity allocation (~31%) receives eligible dividend treatment in taxable accounts. VFV's distributions are 100% foreign income. In registered accounts, the difference is minimal.VEQT
The recommendation

If you believe the US will continue to outperform the rest of the world indefinitely, VFV is the rational choice and cheaper to hold. If you believe that no country stays on top forever (and 120 years of market history supports this), VEQT is the more prudent bet. We lean VEQT because diversification is the only free lunch in investing, but we respect the VFV argument.

Editorial analysis · Public fund data · Not financial advice · Your situation may differ

Back to all comparisons