XGRO vs VGRO
Which is Better for Canadian Investors?
Quick Verdict
Choose XGRO for lower fees. Choose VGRO if you prefer Vanguard and want slightly broader stock diversification. Both hold 80% equities and 20% bonds — making them ideal growth portfolios with a built-in volatility cushion. XGRO's 0.04% fee advantage gives it the edge for cost-conscious investors.
Side-by-Side Comparison
| Metric | XGRO | VGRO |
|---|---|---|
| Management Expense Ratio (MER) | 0.20% | 0.24% |
| Equity Allocation | 80% | 80% |
| Fixed Income Allocation | 20% | 20% |
| US Equity Weight | ~38% | ~34% |
| Canadian Equity Weight | ~19% | ~24% |
| Bond Currency Hedging | CAD-hedged | CAD-hedged |
| Number of Underlying Holdings | ~9,400+ | ~13,500+ |
| Automatic Rebalancing | Yes | Yes |
| Distribution Frequency | Quarterly | Quarterly |
| Eligible Accounts | TFSA, RRSP, FHSA, RESP | TFSA, RRSP, FHSA, RESP |
Key Differences
Fee Structure
XGRO charges 0.20% MER versus VGRO's 0.24%. The 0.04% difference is small annually but compounds over decades. On a $200,000 portfolio held for 25 years, this could amount to $3,000–$5,000 in additional returns for XGRO holders.
Bond Component
Both funds allocate 20% to fixed income and hedge their bond holdings back to Canadian dollars, protecting you from currency fluctuations on the defensive portion of your portfolio. The bond allocation helps smooth volatility during stock market corrections.
Geographic Tilt
VGRO overweights Canadian stocks at ~24% of the equity portion versus XGRO's ~19%. If you believe the Canadian economy (banks, energy, mining) will outperform, VGRO benefits more. If you want broader global exposure, XGRO is better positioned.
Rebalancing Automation
Both ETFs automatically rebalance between stocks and bonds, maintaining the 80/20 split without any action from you. This is their primary advantage over building a DIY portfolio — the discipline of selling winners and buying losers is handled systematically.
Best For
Both are outstanding starter investments. The 20% bond allocation reduces the gut-wrenching drops that cause beginners to panic-sell. Pick XGRO for the lower cost.
XGRO's lower fee makes it the better long-term hold inside registered accounts. If you are under 40 and investing for retirement, an 80/20 growth allocation is well-suited to your time horizon.
The bond allocation in both funds generates slightly higher income than pure equity ETFs. However, neither is optimized for cash flow. Dedicated dividend ETFs remain superior for income strategies.
If you want stock-market growth but cannot stomach a 100% equity portfolio, both XGRO and VGRO are excellent compromises. The 20% bond buffer historically reduces maximum drawdowns by 5–10 percentage points compared to all-equity portfolios.
Final Recommendation
Choose XGROif…
you want the cheapest 80/20 growth allocation ETF in Canada, prefer less Canadian home bias, and plan to hold for 10+ years inside your TFSA or RRSP.
Choose VGROif…
you prefer Vanguard funds, want more Canadian equity exposure, or already own iShares products and want to diversify fund providers.
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