What’s an all-in-one ETF
VGRO (Vanguard Growth ETF Portfolio) is an all-in-one ETF listed on the TSX, designed for investors seeking a simple and convenient way to invest. Here’s why VGRO stands out:
Simplicity: VGRO offers easy access to a diversified portfolio, making it ideal for DIY investors who prefer a hands-off approach.
Automatic Rebalancing: The portfolio is automatically rebalanced to maintain the target asset allocation, so you don’t have to manage it yourself.
Cost-Effective: VGRO is a great alternative to Robo-advisors like Wealthsimple Invest or Questrade Portfolios. It typically has lower fees than these managed services, saving you money over time.
VGRO Investment objective
The VGRO Fund aims to achieve long-term capital growth by investing mainly in other Vanguard-managed ETFs that offer exposure to both stocks and bonds.
When you invest in VGRO, you’re essentially buying a portfolio of ETFs. About 80% of the portfolio is allocated to equity ETFs, while the remaining 20% is in fixed income ETFs. This makes VGRO a growth-focused portfolio, well-suited for investors with long-term goals and a medium risk tolerance.
VGRO price and chart
XGRO vs VGRO vs ZGRO
There are two main all-in-one ETFs that have same portfolio breakdown (80% equity and 20% bonds): the BMO Growth – ZGRO and the iShares ETF XGRO.
Updated daily, XGRO vs ZGRO vs VGRO
Fees
VGRO has a management expense ratio (MER) of 0.24%. This fee covers all costs associated with the fund. Even though VGRO invests in multiple ETFs, investors are only charged a single MER of 0.24%, not an additional fee for each individual ETF in the portfolio.
| Management Fee | 0.22% |
| Management Expense Ratio (MER) | 0.24% |
Fees and AUM comparison
XGRO and ZGRO have the lowest fees at 0.20%, while VGRO from Vanguard is slightly higher at 0.24%. Another important factor to consider is liquidity. Larger funds typically offer better liquidity, which affects the bid-ask spread when you buy or sell. Among these options, Vanguard’s VGRO is the largest, with over $2.5 billion in assets, making it the most liquid of the three.
Source: Barchart, *AUM: Asset under management in millions
What are the largest ETFs in Canada?
VGRO Holdings
VGRO has a great coverage, it includes US, Canada and World equities. 36% is invested in US stocks. As you can see below, VGRO invests in a basket of various ETFs.
| Fund | |
|---|---|
| Vanguard U.S. Total Market Index ETF | 34.73% |
| Vanguard FTSE Canada All Cap Index ETF | 23.82% |
| Vanguard FTSE Developed All Cap ex North America Index ETF | 16.28% |
| Vanguard Canadian Aggregate Bond Index ETF | 11.65% |
| Vanguard FTSE Emerging Markets All Cap Index ETF | 5.66% |
| Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) | 4.04% |
| Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) | 3.82 |
Sector allocation
VGRO offers an excellent diversification accross various sectors.
| Sector | Fund |
| Financials | 19.2% |
| Technology | 16.3% |
| Industrials | 12.6% |
| Consumer Discretionary | 12.0% |
| Energy | 8.9% |
| Health Care | 8.6% |
| Basic Materials | 6.1% |
| Consumer Staples | 5.4% |
| Utilities | 4.2% |
| Telecommunications | 3.5% |
| Real Estate | 3.3% |
| Total | 100.0% |
How can I buy VGRO
Clients have simply to use their banks brokerage websites or independent brokers platform (such as Questrade or Wealthsimple) to acquire the ETF. No need to contact a financial advisor, it’s a product for DIY investors.
This ETF can be held in registered accounts such as RRSP, TFSA or RESP.