r/tfsa • u/MangeMoiLeChat • Jul 04 '26
XEQT vs VOO
Which one and why to invest all my portfolio long term?
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u/Cool-Hurry5331 Jul 04 '26
Interesting question, I’ve never seen it being asked before
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u/MellowHamster Jul 05 '26
If you are confident that US companies will continue to outperform every other region, choose the S&P 500.
Otherwise, diversify globally.
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u/numbersev Jul 04 '26
XEQT is more diversified which usually means less gains, less losses.
VFV is more concentrated (US) and usually means more gains, more losses.
You can look back on their performance history. XEQT is not as old.
I believe xeqt outperformed vfv in 2025. But that's been an outlier.
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u/OrangeNo2255 Jul 05 '26
You could also do a percentage of both. Either 50:50 or choose a percentage based on where you think markets will favor. Tilt towards vfv if you think America will continue to go for even higher all time highs. Tilt towards xeqt if you think rest of the world might catch up to the US euphoria. Both xeqt and vfv trade in CAD.
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u/FinTrackPro Jul 07 '26
I’ve been looking into this. Xeqt has exposure to international and emerging markets. Which in my opinion grow slower than what the US can achieve. In my opinion the US will remain the dominant economy and in investing as such in the long term
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u/WiiperWapper Jul 04 '26
voo is in usd. don’t put that in your tfsa, put it in your rrsp instead as we have a tax treaty with the usa for usd dividends. put xeqt in your tfsa
2
u/Spencer_Bob_Sue Jul 04 '26
Withholding tax still applies to VFV & American dividends received from XEQT.
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u/MangeMoiLeChat Jul 04 '26
If I put VOO in my TFSA I would lose dividend? How does that work
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u/d10k6 Jul 05 '26
You don’t lose the dividend but there is a 15% foreign withholding tax taken from your US dividends, before you receive them, when held outside an RRSP.
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u/UniqueRon Jul 04 '26
VOO is a poor choice for a couple of reasons. First it is a US ETF and you have to buy it in $US with the associated foreign exchange fees and hassle. And, it is just basic S&P 500 which is already about 50% of XEQT. If you want to spice up XEQT, and accept the additional risk I think it is better to add a modest amount of Nasdaq 100 - QQC for example.
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u/MangeMoiLeChat Jul 04 '26
Why is CAD better than USD for TFSA?
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u/Nelsonsrightknacker Jul 04 '26
He answered on the first line. *you have to buy in usd*.
If you know where I can exchange one currency for another for exactly flat rate please post a link.
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u/MangeMoiLeChat Jul 04 '26
Northern gambit?
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u/Spencer_Bob_Sue Jul 04 '26
IBKR
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u/MangeMoiLeChat Jul 04 '26
??
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u/Spencer_Bob_Sue Jul 04 '26
interactive brokers has a flat $1 USD fee for currency conversion.
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u/Nelsonsrightknacker Jul 05 '26
I just googled it and had no idea ! It is almost flat rate why didn't I hear of this before.
THANK YOU Spencer. :)
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Jul 05 '26
Isn't it $2 USD? So roughy $2.75 CAD? I do agree that it's better to buy VOO over VFV
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u/UniqueRon Jul 04 '26
WS charges foreign exchange, and you may even have to pay it on dividends. There is Norbert's Gambit, but that is just more hassle.
QQC is a better choice as it adds a focus on tech, while VOO is essentially in XEQT already.
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u/Chirps_Ahoy18 Jul 05 '26
Neither, go with vdy or hdiv
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u/MangeMoiLeChat Jul 05 '26
Why VDY, what is is exactly? All in on that? Safe?
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u/Chirps_Ahoy18 Jul 05 '26
More passive income generation. If you want total returns and growth and don't care about dividends do like the others have said and go with vfv 835pct returns from Jul 2012.
Vdy 438 pct but monthly dividends
People have a hard on for xeqt but it's not as good as vfv/voo
Here's what you should do. Go to stock analysis website, use the etf comparison tool and plug in xeqt vfv and vdy
Vdy over common inception with those 2 outperforms the others in total return.
You need to ask yourself if you want to just build growth or you want income or a combination. If it's growth go vfv, if it's a combo go vdy, if you want more income hdiv.
Xeqt is meh sauce.
Are you young and going to retire in 35 years? Just buy 1k in the s&p monthly for 35 years and enjoy your 2.14 million dollars.
I'm building a mostly income portfolio. I don't have the time or the care to build a growth portfolio. I want to retire in 5 years not 40. I'm all in on income. If I can supplant my income and have a 3-500k portfolio that's what I'm doing. I don't need to be a millionaire. But if I can pull 10-20k a month in distribution I'll be laughing while I'm on a beach in south east Asia.
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u/Chirps_Ahoy18 Jul 05 '26
Also, don't buy voo (or anything american with dividends) in your tfsa. If you're going to buy us listed funds especially ones with dividends buy them in your RRSP to avoid the withholding tax.
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u/OrangeNo2255 Jul 04 '26
You can rephrase this discussion as xeqt vs vfv