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.