If you want the broader shortlist before comparing these two directly, start with best all-in-one ETFs in Canada.
VBAL vs VGRO at a Glance
| Feature |
VBAL |
VGRO |
| Allocation |
60% stocks / 40% bonds |
80% stocks / 20% bonds |
| MER |
0.24% |
0.24% |
| Risk level |
Medium |
Medium-High |
| Distribution yield |
~2.5% |
~2.0% |
| Distribution |
Quarterly |
Quarterly |
| AUM |
$4.5B+ |
$6.0B+ |
| Inception |
Jan 2018 |
Jan 2018 |
| Best for |
Conservative to moderate |
Growth-oriented |
For the full fund-level breakdowns first, compare VBAL review and VGRO review.
Asset Allocation
VBAL (60/40)
| Component |
Weight |
Underlying ETF |
| US stocks |
~25% |
VUN |
| Canadian stocks |
~18% |
VCN |
| International stocks |
~12% |
VIU |
| Emerging markets |
~5% |
VEE |
| Canadian bonds |
~30% |
VAB |
| Global bonds (ex-CAD) |
~10% |
VBG |
VGRO (80/20)
| Component |
Weight |
Underlying ETF |
| US stocks |
~34% |
VUN |
| Canadian stocks |
~24% |
VCN |
| International stocks |
~16% |
VIU |
| Emerging markets |
~6% |
VEE |
| Canadian bonds |
~15% |
VAB |
| Global bonds (ex-CAD) |
~5% |
VBG |
| Period |
VBAL |
VGRO |
Difference |
| 2019 |
+15.2% |
+18.5% |
VGRO +3.3% |
| 2020 |
+10.5% |
+10.8% |
VGRO +0.3% |
| 2021 |
+10.1% |
+14.2% |
VGRO +4.1% |
| 2022 |
-11.5% |
-11.2% |
VGRO +0.3% |
| 2023 |
+10.8% |
+14.0% |
VGRO +3.2% |
| 2024 |
+12.5% |
+17.0% |
VGRO +4.5% |
Past performance does not guarantee future results.
Growth of $100,000
| Year |
VBAL Value |
VGRO Value |
Difference |
| Start |
$100,000 |
$100,000 |
$0 |
| Year 5 |
~$130,000 |
~$140,000 |
~$10,000 |
| Year 10 |
~$170,000 |
~$195,000 |
~$25,000 |
| Year 20 |
~$285,000 |
~$365,000 |
~$80,000 |
| Year 30 |
~$475,000 |
~$670,000 |
~$195,000 |
Based on estimated 5.5% (VBAL) and 6.5% (VGRO) long-term annualized return.
If you want to model your own assumptions instead of these examples, use the investment calculator.
Risk Comparison
Maximum Drawdowns
| Event |
VBAL Drop |
VGRO Drop |
| COVID (Feb-Mar 2020) |
-17% |
-22% |
| 2022 rate hikes |
-15% |
-14% |
| Typical correction |
-8 to -12% |
-12 to -18% |
Volatility
| Metric |
VBAL |
VGRO |
| Annual standard deviation |
~8% |
~11% |
| Worst month |
-10% |
-14% |
| Best month |
+7% |
+10% |
| Recovery time (2020 crash) |
~6 months |
~8 months |
When to Choose VBAL
| Situation |
Why VBAL |
| 10-15 year time horizon |
Moderate growth with less volatility |
| Moderate risk tolerance |
Smaller drawdowns during crashes |
| Approaching retirement (50s) |
More stability as you near drawdown phase |
| Sleep test fails at -20% |
Bond cushion limits worst-case to ~-17% |
| Partially retired |
Income needs favour bond allocation |
When to Choose VGRO
| Situation |
Why VGRO |
| 15+ year time horizon |
More time to recover from downturns |
| High risk tolerance |
Can stomach -20%+ drops |
| Young investor (20s-40s) |
Maximize growth in accumulation phase |
| TFSA/RRSP contributions ongoing |
Regular contributions buy dips |
| Comfortable with volatility |
Understand stocks outperform long-term |
What About VEQT (100/0)?
| Feature |
VBAL |
VGRO |
VEQT |
| Stocks |
60% |
80% |
100% |
| Bonds |
40% |
20% |
0% |
| Expected return |
~5.5% |
~6.5% |
~7.5% |
| Max drawdown |
~-17% |
~-22% |
~-35% |
| Best for age |
50-60 |
35-50 |
20-35 |
That ladder should be cross-checked against asset allocation by age before you treat it as your default.
Switching Between Them
| Account |
Tax on Switch |
Recommendation |
| TFSA |
No tax |
Switch freely |
| RRSP |
No tax |
Switch freely |
| FHSA |
No tax |
Switch freely |
| Non-registered |
Capital gains tax applies |
Consider tax impact first |
To switch: Sell all shares of the old ETF, buy shares of the new ETF. Takes 2 business days to settle.
If you are switching in a taxable account, read capital gains tax in Canada first.
VBAL/VGRO vs iShares Equivalents
| Vanguard |
iShares |
MER Advantage |
| VBAL (0.24%) |
XBAL (0.20%) |
iShares saves $40/yr on $100K |
| VGRO (0.24%) |
XGRO (0.20%) |
iShares saves $40/yr on $100K |
The difference is $40/year per $100K invested — negligible. Pick either and stay consistent.
If you want the iShares comparison on the growth side, see VGRO vs XGRO.