Both Vanguard’s VGRO and iShares’ XGRO are “one-fund” ETFs built for growth-focused Canadian investors.
They each hold ~80% stocks and 20% bonds, offering global diversification, automatic rebalancing, and simplicity.
But which performs better? Let’s look side-by-side.
🧩 Quick Overview
| Feature | VGRO (Vanguard Growth ETF Portfolio) | XGRO (iShares Core Growth ETF Portfolio) |
|---|---|---|
| Ticker | VGRO | XGRO |
| Provider | Vanguard Canada | BlackRock Canada |
| MER (2025) | ~0.25% | ~0.20% |
| Management Fee | 0.22% | 0.18% |
| AUM (2025) | $3.7B+ | $3.2B+ |
| Target Allocation | 80% equities / 20% bonds | 80% equities / 20% bonds |
| Rebalancing | Automatic | Automatic |
| Currency Hedging | Unhedged | Unhedged |
🔹 Verdict: Both are low-cost and diversified.
XGRO edges out slightly on fees, while VGRO is preferred by investors loyal to Vanguard’s structure.
Both VGRO and XGRO are cost-effective, diversified growth ETFs designed for long-term Canadian investors. VGRO, managed by Vanguard Canada, charges a slightly higher MER of 0.25% versus XGRO’s 0.20% under BlackRock. Each maintains an 80% equity and 20% bond target, automatically rebalanced and unhedged for currency exposure. VGRO has the edge in brand trust and simplicity, while XGRO is marginally cheaper, appealing to fee-conscious investors. In essence, both funds deliver reliable diversification and ease of use; VGRO suits investors who prefer Vanguard’s structure, while XGRO offers nearly identical exposure at a slightly lower cost.
🌍 Geographic Exposure (2025)
| Region / Country | VGRO | XGRO |
|---|---|---|
| United States | 45.1% | 39.8% |
| Canada | 30.9% | 34.4% |
| Japan | 4.1% | 4.8% |
| United Kingdom | 2.4% | 2.9% |
| China | 2.4% | 1.3% |
| France | 1.5% | 2.0% |
| Germany | 1.5% | 1.8% |
| Other Countries | 10.1% | 9.1% |
🔹 VGRO = higher U.S. exposure, more focus on North America
🔹 XGRO = slightly broader international diversification
💼 Top Holdings (Underlying ETFs)
| Allocation | VGRO | XGRO |
|---|---|---|
| U.S. Equity | Vanguard U.S. Total Market ETF – 36.8% | iShares Core S&P Total U.S. Stock ETF (ITOT) – 36.3% |
| Canadian Equity | Vanguard FTSE Canada All Cap – 25.2% | iShares S&P/TSX Capped Composite (XIC) – 20.5% |
| International Developed | FTSE Developed ex North America – 14.0% | iShares MSCI EAFE IMI (XEF) – 19.7% |
| Emerging Markets | Vanguard FTSE EM All Cap – 5.7% | iShares MSCI EM (XEC) – 4.3% |
| Canadian Bonds | Vanguard Canadian Aggregate Bond – 10.9% | iShares Core Canadian Universe Bond (XBB) – 12.5% |
| U.S. & Global Bonds (Hedged) | 7.3% combined | 6.7% combined |
🔹 VGRO: More Canada + U.S.
🔹 XGRO: More developed markets outside North America
VGRO and XGRO share a similar growth-oriented 80/20 structure but differ in regional focus. VGRO leans more toward North America, with heavier U.S. (36.8%) and Canadian (25.2%) exposure, appealing to investors seeking dividend-friendly Canadian content and U.S. market dominance. XGRO, meanwhile, allocates more to international developed markets (19.7%) through Europe and Asia, offering broader global diversification. On the fixed-income side, XGRO holds slightly more bonds (12.5% vs. 10.9%), providing marginally lower volatility. In short, VGRO favors home bias and growth from North America, while XGRO emphasizes diversification and slightly lower overall portfolio risk.
📈 Performance (as of September 2025)
| Symbole | 1 an | 3 ans | 5 ans | 10 ans |
|---|---|---|---|---|
| XGRO.TO | 18.53% | 19.06% | 11.90% | 9.87% |
| VGRO.TO | 18.41% | 18.60% | 11.72% | — |
🔹 Performance is virtually identical. Source: Yahoo finance
Long-term results will depend more on market conditions than fund choice.
⚖️ Pros and Cons
| VGRO | XGRO | |
|---|---|---|
| ✅ Pros | – Higher U.S. weighting – More Canadian exposure (dividend tax benefit) – Simple Vanguard structure | – Lower MER – Broader global diversification – Slightly less volatile |
| ⚠️ Cons | – Slightly higher cost – Less international exposure | – Slightly less U.S. weighting – Lower Canadian dividend weight |
VGRO and XGRO share a similar growth allocation but appeal to slightly different investor preferences. VGRO offers higher U.S. and Canadian exposure, making it attractive to investors who value familiarity, dividend tax advantages, and Vanguard’s straightforward fund structure. However, this comes at the cost of a slightly higher MER and less international diversification. XGRO, on the other hand, stands out with a lower fee, broader global reach, and marginally lower volatility — ideal for investors seeking wider exposure beyond North America. In essence, VGRO favors home-country comfort and simplicity, while XGRO prioritizes cost efficiency and global diversification.
🧠 Which ETF Should You Pick?
| Investor Type | Best Choice |
|---|---|
| Prefer more U.S. & Canadian exposure | VGRO |
| Prefer broader international diversification | XGRO |
| Fee-sensitive long-term investor | XGRO |
| Dividend-oriented Canadian investor | VGRO |
| Loyal to Vanguard philosophy | VGRO |
| Already using iShares Core ETFs | XGRO |
💡 Bottom Line
Both VGRO and XGRO deliver what most investors need:
✅ Diversification
✅ Simplicity
✅ Low cost
✅ Long-term growth
They’re near-identical in structure and performance — your decision should hinge on fees, regional preference, and brand loyalty.
For most Canadians:
- Choose VGRO if you want more North American exposure.
- Choose XGRO if you prefer lower fees and slightly more global reach.
Either way, you’re investing smart — and staying the course matters far more than which ticker you choose.