iShares XEQT Review 2022: BlackRock Core Equity ETF Portfolio

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
IShares XEQT Review 2021
9.6/10Our Score

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.

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

What is BlackRock iShares Core Equity ETF Portfolio?

iShares XEQT is an all-equity ETF portfolio that is managed by BlackRock Canada.

XEQT aims to have 100% exposure to equity securities. However, you can expect it to have a small amount of cash or cash equivalents from time to time.

The ETF portfolio consists of several other iShares ETF portfolios.

XEQT.TO is currently trading at close to $23.16.

XEQT Key Facts

As of June 30, 2022:

  • Ticker Symbol: XEQT.TO
  • Exchange: Toronto Stock Exchange
  • Assets Under Management: $1.08 Billion
  • MER: 0.20%
  • 12-Month Trailing Yield: 3.4%
  • Currency Traded: CAD
  • Number of Underlying Stocks: 9670
  • Registered Accounts Availability: Yes

iShares XEQT MER and Fees

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.

iShares XEQT Performance and Returns

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:

Here is the performance as of June 30, 2022:

 1y3y5y10yIncept.
Total Return (%) -10.666.75
Source: Blackrock.com

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

iShares XEQT Dividend Yield

As is typical of most all-in-one ETFs, the dividend yield is not very high. As of June 30, 2022:

  • 12-month trailing yield: 2.17%
  • Distribution yield: 3.34%
  • Dividend schedule: Quarterly

What does BlackRock iShares XEQT Invest in?

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 July 11, 2022:

TickerNameSectorWeight (%)
ITOTISHARES CORE S&P TOTAL U.S. STOCKFinancials45.78
XICISHARES S&P/TSX CAPPED COMPOSITEFinancials25.53
XEFISHARES MSCI EAFE IMI INDEXFinancials23.74
IEMGISHARES CORE MSCI EMERGING MARKETSFinancials4.70
USDUSD CASHCash and/or Derivatives0.21
CADCAD CASHCash and/or Derivatives0.05
Source: Blackrock.com

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
Equity99.74
Cash and/or Derivatives0.26
Source: Blackrock.com

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 States45.01
Canada24.81
Japan5.60
United Kingdom3.68
Switzerland2.48
France2.28
Australia2.02
China1.79
Germany1.66
Netherlands1.01
Cash and/or Derivatives0.65
Other9.01

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 INC2.65Information Technology
MSFTMICROSOFT CORP2.36Information Technology
RYROYAL BANK OF CANADA1.68Financials
TDTORONTO DOMINION1.39Financials
AMZNAMAZON COM INC1.16Consumer Discretionary
ENBENBRIDGE INC1.03Energy
BNSBANK OF NOVA SCOTIA0.85Financials
GOOGLALPHABET INC CLASS A0.83Communication
CPCANADIAN PACIFIC RAILWAY LTD0.81Industrials
CNRCANADIAN NATIONAL RAILWAY0.80Industrials
Source: Blackrock.com

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 July 12, 2022:

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

iShares XEQT Risk Indicator

XEQT is a low-to-medium risk ETF:

Source: Blackrock.com

iShares XEQT vs. Other ETFs

iShares XEQT vs. iShares XAW

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.

iShares XEQT vs. Vanguard VGRO

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.

Is iShares XEQT a Good Investment For You?

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.

How to Buy BlackRock iShares XEQT ETF in Canada

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

Readers Choice
Qtrade
Qtrade
  • 105 commission-free ETFs to buy and sell
  • Excellent customer service
  • Top-notch market research tools
  • Easy-to-use and stable platform 
Low Fees
Wealthsimple Trade
Wealthsimple Trade
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
Well-Rounded
Questrade
Questrade
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

To learn more, check out my full breakdown of the best 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.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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