Q: I am looking for an all in one equity etf. What are your thoughts on FEQT vs VEQT ? I understand FEQT is actively managed using factor approach and has much less stocks. Does the 0.43 MER for FEQT include the MER for the underlying ETFs ? I wouldn’t think that Fidelity would be charging investors twice.
5i Research Answer:
FEQT has better performance (three years) but higher fees (vs 0.25%). There are no double fees. VEQT holds four ETF with dozens of stocks in each. FEQT owns 17 ETFs but shifts allocations actively. Over three years (the longest comparable for both), FEQT has beaten VEQT by more than two percentage points so the higher fee certainly seems justified.