So if you were to buy that as well as VGRO, you’d have a higher weighting to US stocks. Unlike VGRO which vanguard created new last year, iShares took a pre-existing ETF, CBN, and then changed it to become XGRO. Banks – If you feel banks are the safest instruments to hold your investments/savings, I am with you on this. 7. VGRO ETF seeks to achieve its investment objective by primarily investing in equity and fixed-income securities. 10 … Nothing more to say. For example, the iShares XGRO and Vanguard VGRO are both growth ETF’s that are heavily North American focused. Since we are only comparing VGRO and XGRO here, even though both these stocks look almost similar, VGRO is way better in terms of growth and making use of your hard-earned money better. For a normal mutual fund, people get excited and attracted to it when it has a huge performance in some time period. If you do not prefer high-risk securities, then avoid VGRO as their only holdings – but should diversify ( All I mean to say is don’t go all-in with VGRO). You should also know that VCN has been around much longer than the other two and has a much lower management fee (MER). After seeing all the funny posts about VGRO, I had a quick look at it. Reply. Over 70% of your money is invested in the US & Canadian stocks, with other major holdings in Japan, UK and China. If you are looking at growth ETFs alone, you might also want to consider ETFs like ZSP or VFV which actively tracks the US S&P 500 Index. Hi Justin, I am suffering from analysis paralysis and can’t decide between XGRO and VGRO. That’s what I feel at least. Two ETF Portfolio vs. VGRO. As you just saw, the top 10 holdings of VGRO are all the biggies in the industry and reputed blue-chip companies from the US and Canadian stock markets. Next, let’s look at the chart comparing the “Maximum” timeframes Of VGRO and XGRO for the returns: As you can see from the above chart, VGRO is a clear winner here. People are interested in VGRO, not because it has some special sauce or magic stock-picking ability, but rather because it allows you to cheaply and extremely easily implement a well-known Canadian Couch Potato Strategy. XGRO vs. VGRO. Human nature being what it is, that is asking a lot. So It’s definitely safer and sound, and you can definitely expect decent to excellent growth over the period of time. Math aside, I would maintain that most DIY investors would be wise to stick like glue to their one-fund solutions, even as their RRSP values continue to grow. In fact, I use ETF… Let’s quickly take a look at the VGRO ETFs Fund Facts –, Eligibility: RRSP, RRIF, RESP, TFSA, DPSP, RDSP. True. VGRO’s portfolio asset mix may be reconstituted and rebalanced from time to time at the discretion of the sub-advisor. Both XGRO and VGRO have a low-medium risk rating. And VUN holds over 3500 US-listed stocks, including every stock in the S&P 500 Index. Currency in CAD. I personally like iShares XGRO because it has lower MER at .20% vs Vanguard at .25% and also its bond exposure is only Canadian and U.S and not international. His genuine passion for personal finance coupled with his unique style of writing is what stands out. It’s also interesting why there is so much hype about VGRO. Please read this information carefully, as it is super important. But when the market is down, the downs will be much lower too. VFV only contains US stocks. VGRO is a well-diversified stock geographically. While all three of these growth all-in-one ETFs have similar strategies and approaches, there are some small differences in exposures and holdings. With VFV, you’re getting far better returns as compared to VGRO for the same time frame. Woohoo! The Big Six banks are flush with cash – and that's got M&A on Bay Street's mind . Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its stock price per share. If you want longer-term performance on how an 80/20 couch potato strategy has performed, Vanguard is one of the world’s largest and leading asset management companies, with more than $6 trillion in assets under management globally. Why not invest in others such as VCN, XIC, XUS, XAW, ZSP, VFV, XUU, XRE, VBAL or any other growth ETF. Interesting concept. There are other all-in-one ETFs similar to VGRO, including XGRO from BlackRock, which also has an 80% equity and a 20% fixed income. VGRO’s Management Fee and MER are not the best in the industry when it comes to fees but still, it’s not too expensive either. If you want longer-term performance on how an 80/20 couch potato strategy has performed, check out the numbers here. You can see for yourself here with the sectors that your money will be invested in: In this section, let’s quickly look at the VGRO returns since inception and for the past couple of years using the standard template. Bob Dylan to sell entire songwriting catalog to Universal. Here, let’s quickly compare the market returns when it comes to VGRO Vs. VCN and see which one is the actual winner for your buck. Doesn’t matter. So you aren’t getting any additional diversification by buying an S&P 500 ETF. Did you notice how well VGRO is diversified into multiple sectors? Therefore it all depends on what your individual choice is and where you want to park your hard-earned money. That’s how well diversified this ETF really is. Vanguard Growth ETF Portfolio VGRO * The Objective Vanguard Growth ETF Portfolio seeks to provide long-term capital growth by investing in equity and fixed income securities. Line . I think the average person wants to reduce investment fees but are intimidated when they realize they have to buy their own funds. It pretty much covers all of your investment needs through one portfolio. At the end of the day, whether you’re going to pick VGRO, VBAL, VCNS or any others like XRE, XAW (different fund house), it’s your choice. Like I said before when you are investing with VGRO you are pretty much investing in VCN (25%), VUN and over a 12,000 stock portfolio. You get little to no small-cap securities exposure. Also, VGRO yields an excellent dividend of 2.42% annually and pays out quarterly. Cash and cash equivalents made up the remaining 0.07%. Below is the screenshot of the VGRO Price In TSX: Here’s a quick snapshot of the VGRO Dividends: I’ve listed below the fund allocation and percentage for VGRO ETF. The strategy is essentially you’ll choose an asset allocation (such as stock/bond ratio) that’ll match with your goals and ability to take the risk, invest in low-cost index funds, diversify broadly, don’t time the market, and rebalance periodically. You just need to plug in the numbers yourself, it’s all relative. If you set your bonds ratio at 20% or 40% its. In other words, VGRO and VBAL both include stocks from the Canadian, United States, International, Developing economies, and bond markets.. As I’ve been saying throughout the post, VGRO is really good for your investments – Be it in your TFSA’s, RRSP’s or brokerage. In this section, let’s quickly look at the returns of ZSP and compare it with VGRO. Also, let’s take a look at the Pros and Cons of VGRO from an Investment perspective and learn more about why I think it’s a very good investment. You should know what goes where with respect to RRSP vs TFSA vs non registered amounts and accounts. Option 3 also has the flexibility that allows you to adjust your allocation for stocks/bonds to any ratio that you want (That should do the trick for your correct?. 2) VGRO is run by Vanguard, which is basically a very popular fund house. As you can see from the above screenshot, VGROs market returns are slightly above and better than VCNs return, when it comes to the overall market returns (I’ve selected the max time frame for better understanding over longer-timeframes). If you like the content of this article, please share it on social media and help spread the word. Below is the XGRO Returns Since Inception for your reference: As you can see from the above chart, the returns of XGRO is not all that bad at all, in fact, its extremely good. When you compare VGRO to the likes of VBAL and VCNS, which are other great picks when it comes to ETFs – The advantage you get with VGRO is that – almost 80% of the portfolio is made of equities or stocks and the rest 20% into bonds. How Do the XGRO Returns compare to that of VGRO? Let me ask you a quick question, When there are 100’s of great Canadian ETFs, why invest in VGRO? This may not be a bummer to you, but still, this is something you need to be aware of before you invest. There is this market sentiment that bonds are not always the right portfolio mix because of their lower yield, however, there is nothing wrong in holding a mix of equities and bonds to balance out the risk involved (which is actually true). And, … Even though XGRO is smaller than VGRO, 400 million dollars is nothing to … Now that’s quite a difference in terms of returns, right? Our full product list view provides financial advisors with performance details and investment information for our complete lineup of … Like I said, Option 3 is the Canadian couch potato model portfolio. It can’t by construction and never attracts the herd based on that. You should understand your personal tax situation. The simple reason being, you can save so much more in fees and use the same money to invest instead. You can buy and sell them anytime during the trading day just like a stock. That’s the beauty of investing in VGRO. Wealthsimple Trade – Wealthsimple trade offers commission-free trading whether its stocks or ETF. It’s quite simple – VFV tracks the largest and the best US S&P 500 stocks Index. 1. Questrade – Questrade is another Canadian platform and brokerage firm you can choose to buy VGRO. Let’s quickly compare VGRO with VFV and see which one is actually better than the other in terms of the overall market returns. From the second chart above, you can see that VGRO Returns were extremely good until the Pandemic hurt its rally. In a nutshell, VGRO is well diversified across geographies and into multiple high performing funds of different sectors. They are a great choice for doing it yourself investors (DIY), and in this video I demonstrated key differences between Vanguard (VGRO.TO) and iShares (XGRO.TO). Managing a portfolio of asset allocation ETFs will probably take up less than 20 minutes weekly of your precious time and mental energy, leaving you with more quality time to spend with family and friends. You’ll have to make that decision yourself based on what else you have in your portfolio. Assets management: VGRO’s assets mix are designed to meet the requirement of every investor. The stock’s currently trading at 26.90 CAD. Close. That means to only say that, all of your investments are pretty much safe in the short to the long run and keep growing over-time. Are you still not convinced here? Do remember that all of the big companies or blue chips make more profits over time, increasing dividends and thus return more to the fund houses or the investors at the end of the day. XGRO iShares Core Growth ETF Portfolio Overview; Performance; Key Facts; Holdings; Exposure Breakdowns; Listings; Literature; Multi Asset. Monthly Total Returns XGRO.TO Category. Cost-effective: VGRO portfolios are extremely, Again, age is not the only factor in determining the risk levels of investors, 4. Leave your comments and don’t forget to SUBSCRIBE to my channel for more videos. It won’t have a huge outsized return over any short-term period. Here are the underlying ETF funds that make up XGRO as of June 23, 2020: Compared to VGRO, XGRO has a management fee of 0.18% (vs. 0.22%) and management expense ratio of 0.20% (vs. 0.25%). Look at the returns of XGRO since inception, it’s a mind-boggling 32.55%. Your list is empty. People are interested in VGRO, not because it has some special sauce or magic stock-picking ability, but rather because it allows you to cheaply and extremely easily implement a well-known Canadian Couch Potato Strategy. Each bank has different prices, so do check out their websites to determine which is the best bank with minimal fees based on your preference. Top 5 High-Interest Savings Accounts In Canada, TFSA vs. RRSP: Top 10 Features & Comparison (2020), US Housing Market In 2019 – Current trends, reviews and opinions. Also, look out for returns for the past 10 years, it is 67%. My #1 choice to buy VGRO or any Canadian ETF is “Wealthsimple Trade” for sure. Examples of large-cap, Like I said before, VGRO is a very well-diversified, 1. 1. 2. Although that’s kind of like buying half a loaf of bread each at two different grocery stores. Also, there’s the annual maintenance fee that banks usually charge with low account balances. I keep your book handy, and refer to it often. If you are wondering which platforms offer the best rates (commission-free) to purchase ETFs or VGRO in general, let’s look at that in this section. Justin Bender estimates FWT for VGRO at 0.22 and 0.20 for XGRO. As it is an all-equity stock, VEQT allocates 99% into stocks (US & Canadian) and 0.33% into Short-term reserves. VGRO holds about 5% in bonds outside of the United States. I am a big fan of using ETFs and recommend it for most people who are not familiar with investing, or do not want the risk of researching and monitoring individual companies, or simply do not have the time to dedicate to follow various stocks in the public investing markets. Again comparing both in terms of growth and dividends, VGRO wins hand down. That’s the beauty of investing in VGRO. Toronto - Toronto Real Time Price. If you’re a self-directed investor you should know what you’re doing. What Are Guaranteed Approval Personal Loans? This is where things get interesting. Conclusion. Vanguard Growth ETF Portfolio (VGRO.TO) Add to watchlist. As I’ve been saying throughout the post, VGRO is really good for your investments – Be it in your TFSA’s, RRSP’s or brokerage. Fourth, and the last one here, one of the cons of VGRO is that it only holds high, Vanguard’s VGRO and VEQT hold other Vanguard Canada ETFs. People are drawn to VGRO because it simplifies a very sensible, long-term investment process, that should provide investors with their share of market returns over time, a promise that cannot credibly be made by a high cost actively managed fund strategy or the army of advisors that peddle them. As for returns, VGRO will generate the returns of the underlying markets minus the fund MER which 0.22%. +1. I think you’ll agree, it’s hard to put a price on that convenience. Simply put, VGRO is extremely well-diversified and invests your money in seven of the top-performing Vanguard funds making it extremely robust and high performance. 3. There’s nothing better than banks for safety. Side by side, how do they compare? As of close 29 February 2020. Performance charts for Vanguard Growth ETF Portfolio (VGRO - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. As you can clearly see, ZSP wins here with almost 32% returns over time, while VGRO returns a mere 12.75%. What more do you need? As of September 30, 2020, it had an 80.01% stocks vs. 19.92% bonds allocation. 5-Year 8.09% 0.00%. The total number of stock holdings in the VGRO ETF is a staggering 12,143 stocks! That’s VGRO for you. You don’t need any other funds because it contains all the major asset classes already. Trudeau says you need not to worry about CERB repayments right now, CERB repayment: No forgiveness for ineligible recipients, Three things You Should Ask Your Financial Advisor. The All-in-one ETFs from iShares also follow Vanguard’s tickers, with XEQT (100% equities), XGRO (80% stocks/20% bonds), XBAL (60% stocks/40% bonds), and XCNS (40% stocks/60% bonds). Vanguard FTSE Developed All Cap ex North America Index ETF 21.80%, 4. The differences are so marginal you should just blindly choose one. You might notice that the MER Fee Ratio for VGRO is only 0.25%, However, when we talk about the Management Expense Ratio or MER, it’s an extremely important financial metric of any ETF you want to invest in. (That’s about a tenth of what a typical mutual fund charges in Canada.) Also, don’t forget to let me know your thoughts and comments in the comment box below. Again, age is not the only factor in determining the risk levels of investors. VGRO is a bigger fund with over 1 billion dollars under management. Rite? Do notice the Earnings Growth Rate – it is 8.27% which is seriously good! The kind of returns seen here are really good, also the overall objective of this ETF is robust with 75% of large-cap US and, VGRO Trading Information – TSX (Toronto Stock Market), VGRO Allocation To Underlying Vanguard Funds, VGRO Market Capitalization In Funds (Percentage-Wise), 72.54% Of VGRO’s Funds Are In Large-Cap Funds, VGRO Market Allocation Exposure By Region, top 10 holdings of VGRO are all the biggies in the industry and reputed blue-chip companies from the US and Canadian stock, ETF Portfolio seeks to provide long-term capital growth, performance should be very close to that of VGRO or VBAL, Questrade – Questrade is another Canadian platform and brokerage, bank has different prices, so do check out their websites to determine which is the best bank with minimal fees, Top 30 Canadian Blue Chip Stocks You Should Own, How To Watch Free TV Shows In Canada – List of 10 Best Sites, VGRO Review – Vanguard’s Best Growth ETF Portfolio, Top 150+ Dividend Stocks In Canada – Complete List, Credit Karma Canada Review – Free Credit Score And Report. Like I said before, VGRO is a very well-diversified ETF Portfolio. Roughly around 25% of VGRO is invested in VCN. VGRO is slightly better than ZSP in terms of dividends paid. you can take … MultiAsset ETFs are what they sound like, a single ETF that hold multiple assets in it – i.e., both stocks and bonds to provide a one-stop shop for retail investors to follow a buy-and-forget couch potato style investing approach. Make sure your ETF does what it says it should do. One important aspect you need to see is, since the COVID-19 outbreak and the market rebound, VGRO seems to be doing extremely well in terms of bouncing back than VCN. Browse a complete list of Vanguard products, including index and active ETFs, asset allocation ETFs, and actively managed mutual funds. This fund is not the only way to implement that strategy nor is it the cheapest. The fund is still very new and was only launched in Jan 2019 with not much data to analyze the returns over time. 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