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.
Comparison Table: VFV vs. VGRO
| Aspect | VFV (Vanguard S&P 500 Index ETF) | VGRO (Vanguard Growth ETF Portfolio) |
|---|---|---|
| Objective | Mirrors the S&P 500, focusing on U.S. large-cap stocks. | Diversified fund designed for long-term growth (80% equity, 20% bonds). |
| Risk | High risk due to concentration in U.S. large-cap stocks. | Lower risk due to bond allocation and global diversification. |
| Portfolio | Holds U.S. stocks across sectors like tech, healthcare, finance, etc. | Globally diversified portfolio with Canadian, U.S., international stocks, and bonds. |
| Fees | Low fees, making it cost-effective for U.S. market exposure. | Slightly higher fees but offers diversified exposure across asset classes. |
| Diversity | Focuses on U.S. large caps. | Broad global and multi-asset diversification. |
| Investor Suitability | Best for investors seeking exposure to U.S. market growth. | Suitable for investors seeking growth with risk mitigation through bonds. |
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
| Fund | |
| Vanguard U.S. Total Market Index ETF | 35.41% |
| Vanguard FTSE Canada All Cap Index ETF | 23.60% |
| Vanguard FTSE Developed All Cap ex North America Index ETF | 15.46% |
| Vanguard Canadian Aggregate Bond Index ETF | 11.75% |
| Vanguard FTSE Emerging Markets All Cap Index ETF | 5.59% |
| Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | 4.20% |
| Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) | 3.98% |
VFV
| Holding Name | % of Market Value | Sector |
| Apple Inc. | 6.94% | Computer Hardware |
| Microsoft Corp. | 6.47% | Software |
| Amazon.com Inc. | 3.19% | Diversified Retailers |
| NVIDIA Corp. | 2.97% | Semiconductors |
| Alphabet Inc. | 2.14% | Consumer Digital Services |
| Tesla Inc. | 1.91% | Automobiles |
| Meta Platforms Inc. | 1.84% | Consumer Digital Services |
| Alphabet Inc. | 1.84% | Consumer Digital Services |
| Berkshire Hathaway Inc. | 1.76% | Diversified Financial Services |
| Exxon Mobil Corp. | 1.3% | Integrated Oil and Gas |