ZEQT vs XEQT: BMO's all-equity versus iShares'

Short answer: ZEQT (BMO) and XEQT (iShares) are both 100% equity, globally diversified, cap-weighted all-in-one ETFs. They do the same job the same way. ZEQT’s MER is 0.21%; XEQT’s is around 0.20% after BlackRock’s December 2025 fee cut. The difference is about one basis point and minor geographic-weighting choices. For a first-time buyer it’s close to a coin flip. For an existing holder there’s no reason to switch.

XEQT and VEQT get all the airtime. ZEQT is the quiet third option in the cap-weighted all-equity bucket, and it has the lowest MER of the three. So “ZEQT vs XEQT” is a fair question, it just has a smaller answer than most comparison threads imply.

This is not financial advice. I’m sharing what I’ve learned from my own research, and your situation might differ. Fund details change, so always check the latest disclosures before deciding.

What each one is

Both are fund-of-funds: one ticker that holds underlying index ETFs across U.S., international developed, emerging, and Canadian stocks, rebalanced back to target weights.

• ZEQT is BMO’s all-equity all-in-one, listed in January 2022, built from BMO index ETFs. MER 0.21%.
• XEQT is iShares’ (BlackRock) all-equity all-in-one, the most popular of the category, built from iShares index ETFs. MER around 0.20% after the December 2025 fee cut.

The differences that actually exist

Cost. About one basis point apart after XEQT’s fee cut. On a $100,000 portfolio that’s roughly $10 a year. This should not be the deciding factor.

Geographic weights. Both own the global market by size, but each provider makes slightly different home-bias and regional choices. The gaps are a few percentage points, not a different strategy. Neither is “more diversified” in any way that matters over a lifetime.

Track record and size. XEQT has been around since 2019 and is much larger by assets, which means tighter bid-ask spreads and deeper liquidity. ZEQT has a credible record since 2022 but is smaller. For a buy-and-hold investor making monthly contributions, the liquidity difference is negligible. For very large lump-sum trades it’s worth a glance at the spread.

Cost in context

Before the December 2025 fee cut, ZEQT was often cited as the cheapest of the major all-equity all-in-ones. After the cut, XEQT edged slightly below it. Both numbers can move again. Treat them as effectively tied rather than chasing the gap.

How to actually pick

If you’re choosing for the first time:

• If you bank with BMO and value seeing everything in one ecosystem, ZEQT is a perfectly good choice.
• If you want the largest, most liquid, slightly cheaper option, XEQT is the default for a reason.
• If you have no preference, pick XEQT for liquidity and move on. The decision does not deserve more than a few minutes.

If you already hold one: there is no compelling reason to switch. Triggering capital gains in a non-registered account to chase one basis point is a clear net loss. Even in a TFSA or RRSP, the trading friction outweighs the saving.

The genuinely different option in this category isn’t ZEQT versus XEQT. It’s whether you want cap-weighting at all, versus a factor tilt. That’s the CAGE vs ZEQT and CAGE vs XEQT question. And if you want a bond cushion rather than 100% equity, that’s the XGRO vs VEQT and XEQT vs VEQT vs XGRO decision.

Frequently asked questions

Is ZEQT or XEQT cheaper?

After BlackRock’s December 2025 fee cut, XEQT’s MER is around 0.20% and ZEQT’s is around 0.21%, so XEQT is marginally cheaper. Before that cut, ZEQT was often the cheapest. The difference is about one basis point, roughly $10 a year per $100,000. Not a deciding factor.

Is ZEQT as good as XEQT?

Functionally yes. Both are 100% equity, globally diversified, cap-weighted, one-ticker funds rebalanced to target weights. XEQT is larger and more liquid; ZEQT is smaller with a slightly different provider mix. Neither is meaningfully better for a long-term holder.

Should I switch from XEQT to ZEQT (or the other way)?

No. The cost and weighting differences are too small to justify switching, especially if it triggers capital gains in a non-registered account. Pick one for new money and leave existing holdings alone.

What’s the difference between ZEQT and CAGE?

ZEQT is cap-weighted (owns the market by size). CAGE applies a factor tilt toward value, smaller, and profitable companies, at a higher fee. That’s a real philosophical difference, unlike ZEQT vs XEQT. See the CAGE vs ZEQT guide.

Bottom line

ZEQT versus XEQT is one of the smallest decisions in Canadian DIY investing. Same job, same method, about a basis point apart. Pick the one that fits your banking setup or just take XEQT for liquidity, then spend your energy on the decisions that actually move the needle: how much you contribute, and whether you hold through downturns.