What’s an all-in-one ETF
VGRO (Vanguard Growth ETF Portfolio) is all-in-one ETF available on the TSX. All-in-one ETFs are a portfolio professionally managed available for investors in a form of an ETF. It has three main advantages:
- easy access to a portfolio so it’s great for DIY investors who would like a handoff approach to investing;
- portfolio is rebalanced automatically to maintain the desired allocation;
- Good substitute to Robo-advisors such wealthsimple invest (auto-pilot), Questrade porfolios…etc. All-in-one ETF cost less than managed Robo-advisors in terms of fees.
VGRO Investment objective
The Fund seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by Vanguard that provide exposure to equity and/or fixed income securities.
In essence, when acquiring VGRO, you are acquiring of portfolio of ETFs. 80% of the portfolio is invested in equity ETFs while the remaining 20% is invested in fixed income ETFs. It’s a growth portfolio ideal for investors with long term objective and 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 and Morningstar rating
VGRO has a 0.24% management expense ratio. This is the total charge for the fund. Even if VGRO a group of ETFs at once, client will not pay MER for each ETF, the maximum they are charged is the MER of the all-in-one ETF.
| Management Fee | 0.22% |
| Management Expense Ratio (MER) | 0.24% |
Fees and AUM comparison
XGRO and ZGRO offer the lowest fees at 0.20%. Vanguard’s VGRO is a bit higher at 0.24%. Another factor that could impact your choice is liquidity. Generally speaking, the larger fund the better liquidity it offers to investors. Liquidity determines the difference between bid and ask price when selling or buying. So, it’s an important factor to consider. The largest fund among our three contenders is Vanguards ETF VGRO with over 2.5 Billion dollars in assets.
Source: Barchart, *AUM: Asset under management in millions
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.