# Asset allocation ETFs, e.g. XEQT



## sprdave (Oct 1, 2011)

How do the fees work out for EFTs like VEQT and XEQT, that have underlying holdings of other ETFs?

Like is the MER of the XEQT just for that part and then there are the MERs built in the funds it holds like XIC? Or is there really just one layer of ETFs involved and they are just showing holdings of ETFs instead of listing all the stocks it holds?

Obviously the advantage to these is simplicity, but are there advantages to holding the individual ETFs instead, if you're wanting a similar composition? (I'm looking to deploy well into 6 figures in the near future)


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## sprdave (Oct 1, 2011)

Actually, I found for XEQT "Management fee of 0.18% includes all underlying ETF management fees." which is likely the case for all of them.

But it appears the fee is higher on it than the underlying ETFs themselves


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## AltaRed (Jun 8, 2009)

sprdave said:


> Actually, I found for XEQT "Management fee of 0.18% includes all underlying ETF management fees." which is likely the case for all of them.
> 
> But it appears the fee is higher on it than the underlying ETFs themselves


Well, yes, it costs a bit of money to run XEQT and so there will be a slightly higher overall MER because of those coasts. Perfectly logical.


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## OptsyEagle (Nov 29, 2009)

sprdave said:


> Actually, I found for XEQT "Management fee of 0.18% includes all underlying ETF management fees." which is likely the case for all of them.
> 
> But it appears the fee is higher on it than the underlying ETFs themselves


Of course, but not by a lot.


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## privateEquityExec (Mar 15, 2020)

As another user pointed out, it appears the fee is higher on it than the underlying ETFs themselves.

If you don't mind me asking, what percentage allocation are you using right now?


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