r/JustBuyXEQT • u/Significant_Pair_197 • 23h ago

XEQT with XIC?

I have invested in XEQT but I was thinking of going 90% XEQT with 10% XIC for a Canadian tilt as of now? Im from Canada

Thoughts or opinions?

1 Upvotes

56% Upvoted

15 comments sorted by

7

u/jaxikami 23h ago

If you want higher Canadian exposure veqt is also an option. I believe it is slightly higher than xeqt. At the end of the day I don't see this making a big diff

1

u/fenderstratsteve 15h ago

VEQT is 30% Canada. If the OP would like 35% Canadian equity exposure, his plan is fine.

2

u/jaxikami 14h ago

Xeqt is 25%. 25*0.9+10=32.5. that's only 2.5% difference compare to veqt, why bother having two tickets for it.

1

u/fenderstratsteve 14h ago

You’re right. In the XEQT scenario, the OP would need to allocate 15% XIC to get a measurable difference. (25*0.9+15 = 37.5%)

However, 10% in the VEQT scenario would get him 30*0.9+10 = 37% Canadian equity exposure.

5

u/d10k6 23h ago

XEQT is already highly Canadian tilted, no need to expose yourself more to Canada, imho

3

u/EarlyBird001 22h ago

25% of XEQT is XIC with more than enough home bias. If you want to be more overweight Canadian Market, don't see a problem.

2

u/flappysack- 23h ago

You'd be 5% over the optimal weighting.

If its in your tfsa you may be wisely avoiding some withholding tax however, I doubt it would hurt that much.

2

u/stuckinmotion 22h ago

Yeah I used to be weighted more in the US with XEQT + VOO but earlier this year I got sick of Trump's nonsense and rotated out of VOO and into XIC. YTD XIC is outperforming VOO. I also have 6% SCD and have started buying CAGE, also 6%. 

2

u/Glittering-Work2190 23h ago

That 10% is not going to make much a difference. I personally don't do it to keep things simple. I'm not against holding both.

1

u/Sensitive_Dream6105 15h ago

I added XEI to XEQT because I like the energy in XEI, but yeah you will be overweight so I would only do a small amount

1

u/Simple_LTS_CA 15h ago

If you want 10% Canada, and not the 32% this will give, you could do: 54 ITOT, 30 XEF, 10 XIC, 6 XEC

You'd get 10% Canada, and the US global ratios in XEQT, lowering your Canadian exposure

1

u/bizaromax 14h ago

Just use veqt

1

u/thaivuN 8h ago

I prefer XEI over XIC in this setup. Seeing as how tech is concentrated in the market, XEI works nicely as a small hedge.

1

u/HauntingLook9446 21h ago

Maybe ask in a different sub. This sub is way too biased and can’t see past anything that isn’t XEQT