If you want the broader shortlist before choosing a specific growth portfolio, start with best all-in-one ETFs in Canada.
VGRO is the one-ETF portfolio that probably more Canadian investors should own than any other fund. Its 80/20 equity-to-bond split delivers equity-like returns over 10–20 year horizons while the 20% bond allocation typically cushions crashes by 5–8% compared to a 100% equity fund like VEQT. At 0.24% MER, you’re paying $24 per year on a $10,000 investment for a globally diversified portfolio of 13,000+ stocks and 18,000+ bonds that rebalances itself automatically. If you’re in your 20s through 40s and want a sensible, set-it-and-forget-it core holding for your TFSA or RRSP, VGRO is the fund the Canadian personal finance community recommends most.
VGRO at a Glance
| Feature | Details |
|---|---|
| Full name | Vanguard Growth ETF Portfolio |
| Ticker | VGRO |
| Provider | Vanguard Canada |
| Inception | January 2018 |
| MER | 0.24% |
| Asset allocation | 80% equities / 20% bonds |
| Number of holdings | 13,000+ stocks + 18,000+ bonds |
| Distribution frequency | Quarterly |
| Distribution yield | ~2.2% |
| Exchange | TSX |
Asset Allocation
If you are not sure whether 80/20 is right for your stage of life, use asset allocation by age before choosing the fund.
| Component | Allocation | Underlying ETF |
|---|---|---|
| US equities | ~33% | VUN |
| Canadian equities | ~24% | VCN |
| International developed | ~16% | VIU |
| Emerging markets | ~7% | VEE |
| Canadian bonds | ~12% | VAB |
| Global bonds (ex-CA) | ~8% | VBG/VBU |
Performance
| Period | VGRO | VEQT | Difference |
|---|---|---|---|
| 1 year | ~14-18%* | ~18-22%* | Equities outperform in up years |
| 3 years (annualized) | ~6-8%* | ~8-10%* | Bonds drag slightly |
| 5 years (annualized) | ~7-9%* | ~9-11%* | ~2% less return for less volatility |
Approximate. Past performance does not guarantee future results.
VGRO in Market Downturns
| Event | VGRO Drop | VEQT Drop | VGRO Advantage |
|---|---|---|---|
| COVID crash (Feb-Mar 2020) | ~-22% | ~-28% | 6% less drawdown |
| 2022 rate hike sell-off | ~-12% | ~-10% | Bonds also fell (unusual) |
In most downturns, VGRO’s 20% bond allocation cushions losses by 5-8%.
The 2022 rate hike sell-off was a rare exception where bonds and stocks fell simultaneously, making VGRO perform similarly to VEQT. This kind of environment — rapid interest rate hikes from historic lows — is unlikely to repeat frequently, and over most market cycles, bonds still function as the stabilizer they’re designed to be. The real value of VGRO’s bond allocation isn’t mathematical optimization — it’s behavioral. Seeing your portfolio drop 22% instead of 28% during a crash may be the difference between staying invested and panic-selling at the bottom.
Growth of $10,000
| Time Horizon | VGRO (~7.5%) | VEQT (~9.5%) |
|---|---|---|
| 10 years | $20,610 | $24,782 |
| 20 years | $42,479 | $61,416 |
| 30 years | $87,550 | $152,203 |
VGRO vs XGRO
| Feature | VGRO | XGRO |
|---|---|---|
| MER | 0.24% | 0.20% |
| Equity allocation | 80% | 80% |
| Bond allocation | 20% | 20% |
| Canadian equity weight | ~24% | ~19% |
| Provider | Vanguard | BlackRock |
| Performance | Nearly identical | Nearly identical |
For a direct comparison page, see VGRO vs XGRO.
Who Should Buy VGRO
| Profile | Suitable? |
|---|---|
| 10-20 year time horizon | ✅ Ideal |
| Moderate-to-high risk tolerance | ✅ Yes |
| Want some downside protection | ✅ 20% bonds help |
| RRSP growth portfolio | ✅ Great choice |
| Very aggressive (15+ years) | ⚠️ VEQT may be better |
| Conservative / near retirement | ⚠️ Consider VBAL (60/40) |
| Short-term savings | ❌ Too volatile |
If you need more ballast than VGRO provides, compare VBAL review and best bond ETFs in Canada.
The Bottom Line
VGRO is the default recommendation for most Canadian investors with a 10–20 year time horizon and a moderate-to-high risk tolerance. It’s virtually identical to XGRO (iShares’ equivalent at 0.20% MER), so choose whichever brokerage makes it cheaper to buy. If you’re younger and won’t need the money for 20+ years, VEQT’s pure equity approach will likely outperform. If you’re closer to needing the money or sleep better with less volatility, step down to VBAL at 60/40. The honest answer is that the difference between these funds over a lifetime matters far less than simply getting started and staying invested.
VGRO at a glance
| Feature | Details |
|---|---|
| Full name | Vanguard Growth ETF Portfolio |
| Ticker | VGRO |
| Provider | Vanguard Canada |
| MER | 0.24% |
| Asset allocation | ~80% equities / 20% bonds |
| Rebalancing | Automatic |
| Distribution frequency | Quarterly |
| Exchange | TSX (CAD) |
Frequently asked questions
Is VGRO good for a long-term RRSP? Yes. VGRO’’s 80/20 equity-bond split is appropriate for investors with a 10–25 year horizon. The built-in bond allocation reduces volatility compared to 100% equity funds like VEQT, which is particularly useful during market downturns when you might otherwise panic and sell. Within an RRSP, the US withholding tax drag is slightly lower than in a TFSA.
VGRO vs XGRO: which is better? They are nearly identical in purpose (80% equity / 20% bonds, CAD, globally diversified, auto-rebalanced) with similar MERs (VGRO 0.24%, XGRO 0.20%). XGRO has a slightly lower MER and uses iShares underlying ETFs; VGRO uses Vanguard underlying ETFs. Either is an excellent choice — pick based on brokerage commission structure.
Does VGRO pay dividends? Yes, quarterly. The distribution yield is approximately 1.5–2.0%, paid in CAD. Distributions include dividends from the underlying equity ETFs and interest from the bond ETFs.