XEQT is overrated and it has started to feel a bit like a cult. For most people, going 100% into equities—even in a globally diversified fund—doesn’t make sense. The number of posts complaining about a 5% dip recently on r/justbuyXEQT is just crazy.
Second, even if someone chooses to go all-in on XEQT, their asset allocation should evolve over time. As you age, it’s generally prudent to shift toward a lower equity asset class.
Third, if there are investment strategies (e.g., factor-based investing) that can consistently outperform the market and are supported by academic research, it may not make sense to stick exclusively with XEQT—especially if your goal is to generate long-term alpha.
That’s why I respect your move, KYT, into CAGE. Even though I don’t currently hold a position in that ETF, it’s definitely on my radar.
Lastly, XEQT is inferior to a combination of VTI + VXUS + XIC, particularly in RRSP/LIRA accounts. For investors willing to spend a bit of time learning Norbert’s gambit and putting in some effort to rebalance their portfolio (which is still far less effort than picking individual stocks), this combination can surely outperform XEQT because it carries a significantly lower MER and savings in US withholding tax on VTI.
