Go to any Canadian investing subreddit, any personal finance forum, any comment section under a video about getting started. Ask “what should I buy?” and within minutes someone will reply: “Just buy XEQT.”

It’s become the default answer. And honestly, it’s not bad advice. For most people, most of the time, buying a single all-in-one ETF and contributing to it regularly is a strategy that’s almost impossible to beat over the long run. But somewhere between useful shorthand and internet gospel, the nuance got lost.

This isn’t a recommendation to buy or sell any specific fund. I’m sharing what I’ve learned from my own experience, and your situation might be completely different. Fund compositions, MERs, and allocations change over time. Always verify the current details before making decisions.

What XEQT actually holds

XEQT is an all-in-one ETF from iShares (BlackRock) that holds 100% equities. When you buy one share of XEQT, you’re buying a slice of four underlying index funds that together cover thousands of companies across the globe.

The approximate breakdown (as of early 2026, though these shift slightly over time):

Region	Approximate weight	What it covers
United States	approx. 46%	Large and mid-cap U.S. stocks (S&P 500 and beyond)
International developed	approx. 25%	Europe, Japan, Australia, and other developed markets
Canada	approx. 24%	Canadian large-cap stocks (roughly mirroring the TSX)
Emerging markets	approx. 5%	China, India, Brazil, and other developing economies

One purchase, and you own a piece of Apple, Shopify, Nestlé, Samsung, Royal Bank, and thousands more. That’s the appeal.

Why it works for most people

The case for a single all-in-one ETF is simple. You get broad global diversification, automatic rebalancing (the fund managers keep the regional weights in line so you don’t have to), and an extremely low MER (around 0.20%). You don’t need to research individual stocks. You don’t need to decide how much to put in Canada versus the U.S. versus international. You just buy and hold.

For someone who’s just getting started with self-directed investing, this removes almost every barrier. Open an account, set up automatic contributions, buy XEQT (or its equivalent), and let time do the work. No spreadsheets, no rebalancing, no second-guessing.

I went through a “VFV-and-chill” phase myself. VFV tracks the S&P 500, so it was all U.S. large-cap stocks. It did great for a while. But eventually I realized I was making an active bet, that the U.S. would keep outperforming the rest of the world, every year, forever. That’s not diversification, it’s a concentrated position dressed up as simplicity. Moving to a globally diversified approach felt like actually matching my strategy to what I believed: that I can’t predict which country will lead next decade.

XEQT vs. VEQT: does it matter?

VEQT is Vanguard’s equivalent, also 100% equities, also globally diversified, also very low cost. People spend a lot of time debating XEQT versus VEQT, and the honest answer is: it barely matters. The regional allocations are slightly different (VEQT typically holds a bit more in international and a bit less in Canada), and the MERs are nearly identical.

Pick whichever one your brokerage makes easier to buy, or whichever provider you prefer. The gap between XEQT and VEQT is far smaller than the gap between either of them and sitting in cash.

What about bonds? XGRO and VGRO

XEQT and VEQT are 100% stocks. If you want some bonds mixed in, the same providers offer XGRO (80% stocks, 20% bonds) and VGRO (same split). The bonds act as a cushion during stock market downturns, though they also lower your expected long-term returns.

The conventional advice is that younger investors (with decades ahead) can handle 100% equities, while investors closer to retirement should mix in bonds to reduce volatility. That’s a reasonable starting point, but it’s not a rule. What matters more is whether you can actually hold through a 30% drop without panic-selling. If the answer is no, some bonds might help you sleep at night, and a slightly lower return you actually stick with beats a higher return you bail on halfway through.

The Canadian overweight

One thing worth noticing: XEQT holds about 24% in Canadian stocks. Canada represents roughly 3% of global stock market capitalization. So XEQT significantly overweights Canada relative to the global market.

This is intentional. There are valid reasons for holding more Canadian equities than pure market-cap weighting would suggest, including favourable tax treatment on Canadian dividends, no currency conversion, and the fact that your living expenses are in Canadian dollars. But it’s worth understanding that even with an “all-in-one global ETF,” you’re making a meaningful tilt toward Canada. If you’re curious about why this matters, the home market bias article goes deeper.

When one ETF might not be enough

The single-ETF approach is powerful, but it’s not the only valid strategy. There are situations where you might outgrow it:

If you’re holding investments across different account types (TFSA, RRSP, non-registered), you might benefit from putting different assets in different accounts for tax efficiency. Canadian dividend stocks in a non-registered account get better tax treatment. U.S. stocks in an RRSP avoid the 15% withholding tax. A single all-in-one ETF in every account doesn’t capture these advantages.

If your portfolio is large enough, you might save money by holding the underlying index funds directly instead of the all-in-one wrapper. The MER savings are small per dollar, but they compound.

And if you have strong views on specific sectors, themes, or regions, you might want to tilt your portfolio intentionally. That’s fine, as long as you understand you’re making an active decision and accept the risk that comes with it.

The danger of oversimplifying

“Just buy XEQT” is good advice the same way “just eat healthy” is good advice. It’s directionally correct and a great starting point. But if it becomes a way to avoid thinking about your financial situation entirely, it can leave gaps.

It doesn’t tell you which account to buy it in. It doesn’t tell you how much to contribute. It doesn’t address whether you have an emergency fund, or whether you have high-interest debt you should pay down first. The ETF is one piece of a larger picture.

The people who benefit most from the one-ETF strategy aren’t the ones who treat it as a magic answer. They’re the ones who understand what they’re buying, why it works, and what it doesn’t cover. Then they buy it consistently and move on with their lives.

My own path

I didn’t start with an all-in-one ETF. I started with low-cost mutual funds at Tangerine, then moved to VFV because the S&P 500 was the thing everyone talked about. Then I added individual stocks because I wanted to be involved in what I owned, not just watch a number go up. I’d walk past a Dollarama or check in at a hotel and think, “I’m a shareholder of that.” That feeling of connection to the businesses you invest in is real, and I don’t think it’s something to grow out of.

It’s also worth stepping back and noticing that “just buy XEQT” is the current era’s version of advice that changes every few years. Before this, it was VFV-and-chill. Before that, the Couch Potato portfolio. Before that, 60/40 balanced funds. Each one was the prevailing wisdom of its moment, and each one eventually got revised or replaced by the next. XEQT is a genuinely great product. But treating any single answer as settled forever misses the pattern: investing advice evolves, and what feels obvious today might look different in ten years.

If you’re starting out, one ETF is a genuinely solid foundation. If you’ve been investing for a while and want to pick some individual stocks alongside your core holdings, that’s a valid approach too. There’s something to be said for the engagement and learning that comes from owning individual companies. The research isn’t a waste of time if it keeps you interested and invested. Just know what role each part of your portfolio plays, and make sure the core is doing the heavy lifting.

Greenline shows you everything in one place, whether you hold a single ETF or fifty positions across multiple accounts. Whatever your strategy, seeing the full picture helps you stick with it.

Just buy XEQT? The one-ETF strategy explained