VFV vs VGRO – Full review and comparison

Executive summary VFV vs VGRO

In summary, VFV concentrates on U.S. large-cap stocks, specifically tracking the S&P 500, while VGRO provides a more diversified approach with a 20% allocation to bonds and 80% to equity. VGRO’s balanced structure makes it a suitable choice for investors seeking a mix of growth potential and risk mitigation through a diversified portfolio.

VFV (Vanguard S&P 500 Index ETF):

Objective: VFV aims to mirror the performance of the S&P 500 Index, representing the 500 largest U.S. companies.

Risk: With a focus on U.S. large-cap stocks, VFV’s risk is closely tied to the performance of these companies. The fund’s value may experience fluctuations based on the ups and downs of the S&P 500.

Portfolio: VFV holds a portfolio of U.S. companies spanning various sectors, including technology, healthcare, finance, and more. It provides investors with exposure to the overall U.S. market.

Low Fees: Notably, VFV is an index ETF with very low fees, enhancing its appeal for cost-conscious investors seeking efficient exposure to the U.S. large-cap market.

VGRO (Vanguard Growth ETF Portfolio):

Objective: VGRO, in contrast, is a diversified fund designed for long-term growth. It’s a balanced portfolio comprising both equity and fixed income ETFs.

Risk: With a 20% allocation to bonds, VGRO carries lower risk compared to VFV. The inclusion of bonds provides a hedge against stock market volatility.

Portfolio: VGRO holds a globally diversified portfolio, encompassing Canadian, U.S., and international stocks, along with bonds. This diversification aims to spread risk and capitalize on opportunities across different markets.

Diversity for All Investor Types: Vanguard extends its offering of all-in-one ETFs beyond VGRO. There are options tailored to conservative, balanced, and growth-oriented investors, providing a comprehensive range to suit varying risk appetites.

Simplified Investing: These all-in-one solutions cater to investors looking for simplicity and a one-stop-shop for their investment needs. With diverse allocations across asset classes, Vanguard’s suite of all-in-one ETFs caters to a spectrum of investor preferences.

Performance comparison VFV vs VGRO

Portfolio of holdings comparison

VGRO

VFV