What is the difference between VGRO and XGRO?

VGRO (Vanguard) and XGRO (iShares) are nearly identical 80% stock/20% bond all-in-one ETFs. Main difference is MER (VGRO 0.24%, XGRO 0.20%) and slight holdings differences.

Is VGRO or XGRO better?

XGRO has a slightly lower MER (0.20% vs 0.24%), but both are excellent. The difference is minimal. Choose based on which brokerage offers free ETF purchases.

What is the return on VGRO vs XGRO?

Returns are nearly identical since they track similar allocations. Both have returned approximately 6-8% annualized over 5 years. XGRO may have a tiny edge due to lower MER.

Should I hold VGRO or XGRO in my TFSA or RRSP?

Either works perfectly in both accounts. Since both hold US-listed ETFs internally, there is a small US withholding tax drag in TFSAs (about 0.15–0.20% per year). In an RRSP, the US withholding tax is partially recovered. For most investors the difference is negligible — just pick one and contribute consistently.

Is VGRO or XGRO better for a $100K portfolio?

At $100K the MER difference costs only $40/year (0.04% × $100K). XGRO technically saves that amount. VGRO has higher daily trading volume which means tighter bid-ask spreads. Either is an excellent choice — do not overthink it. The biggest factor is how much and how often you contribute, not which of these two you pick.

VGRO vs XGRO 2026: 0.24% vs 0.20% MER — Which 80/20 ETF Is Better?

If you want the broader shortlist before comparing these two directly, start with best all-in-one ETFs in Canada.

Quick Comparison

Feature	VGRO	XGRO
Provider	Vanguard	iShares (BlackRock)
MER	0.24%	0.20%
Asset allocation	80% stocks / 20% bonds	80% stocks / 20% bonds
Holdings	7 Vanguard ETFs	8 iShares ETFs
AUM	$5.7 billion	$2.8 billion
Distribution	Quarterly	Quarterly
Yield	~2.0%	~2.1%

For the full product-level breakdowns first, compare VGRO review and XGRO review.

Asset Allocation

Both ETFs target the same 80/20 split:

Asset Class	VGRO	XGRO
Canadian stocks	24%	20%
US stocks	36%	37%
International developed	16%	17%
Emerging markets	4%	6%
Total stocks	80%	80%
Canadian bonds	12%	15%
International bonds	8%	5%
Total bonds	20%	20%

Key differences:

VGRO has more Canadian stocks
XGRO has more emerging markets
VGRO has more international bonds

Underlying Holdings

VGRO Holds 7 ETFs

ETF	Category	Weight
VUN	US Total Market	36%
VCN	Canada All Cap	24%
VIU	International Developed	16%
VEE	Emerging Markets	4%
VAB	Canadian Bonds	12%
VBG	Global ex-Canada Bonds	5%
VBU	US Bonds	3%

XGRO Holds 8 ETFs

ETF	Category	Weight
XIC	Canada	20%
ITOT	US Total Market	37%
XEF	International Developed	17%
IEMG	Emerging Markets	6%
XBB	Canadian Universe Bonds	10%
GOVT	US Treasury	2%
USIG	US Investment Grade	3%
XSH	Canadian Short Bonds	5%

MER Comparison

Component	VGRO	XGRO
Stated MER	0.24%	0.20%
Difference per $100k	$240/year	$200/year
Annual savings (XGRO)	—	$40/year

Over 25 years, the 0.04% difference on $100,000:

Grows to ~$2,000 (assuming 7% returns)
Not huge, but XGRO has the edge

Performance Comparison

Historical Returns (as of 2025)

Period	VGRO	XGRO
1 Year	+16.8%	+17.0%
3 Year (annualized)	+5.2%	+5.4%
5 Year (annualized)	+7.8%	+8.0%
Since Inception	+7.6%	+7.7%

Returns are nearly identical. Slight XGRO edge from lower MER.

Volatility

Measure	VGRO	XGRO
Standard deviation	12.4%	12.6%
Max drawdown (2022)	-17.2%	-17.5%

Essentially the same risk profile.

Trading & Liquidity

Feature	VGRO	XGRO
Average volume	~400,000/day	~200,000/day
Bid-ask spread	0.02%	0.03%
Liquidity	Excellent	Excellent

VGRO is more heavily traded, but both have excellent liquidity.

Distribution & Yield

Feature	VGRO	XGRO
Frequency	Quarterly	Quarterly
Current yield	~2.0%	~2.1%
Distribution months	Mar, Jun, Sep, Dec	Mar, Jun, Sep, Dec

2025 Distributions per Unit

Quarter	VGRO	XGRO
Q1	$0.21	$0.19
Q2	$0.22	$0.20
Q3	$0.21	$0.19
Q4	$0.22	$0.20
Annual	~$0.86	~$0.78

Account Considerations

TFSA

Consideration	Both ETFs
Best choice?	Either works well
US withholding tax	~0.3% drag on US dividends
Total cost	MER + ~0.3% = ~0.50-0.55%

RRSP

Consideration	Both ETFs
Best choice?	Either works well
US withholding tax	Still applies (not direct US ETF)
Note	Holding individual US ETFs recovers withholding

For the deeper version of that tax-location issue, see tax on US ETFs in Canada and best account type for US stocks and ETFs in Canada.

Taxable Account

Consideration	Both ETFs
Best choice?	Either works well
US withholding tax	Foreign tax credit available
Tax efficiency	Good (automatic rebalancing)

Which Is Better?

Choose XGRO If:

Lower MER is priority
You prefer iShares/BlackRock
More emerging markets exposure wanted

Choose VGRO If:

You prefer Vanguard
Higher Canadian allocation preferred
More international bond exposure wanted
Already own other Vanguard ETFs

It Doesn’t Really Matter Because:

Returns are virtually identical
Both are excellent products
0.04% MER difference is minimal
Same 80/20 allocation
Both automatically rebalance

Alternatives to Consider

ETF	Provider	Stock/Bond	MER
VEQT	Vanguard	100/0	0.24%
XEQT	iShares	100/0	0.20%
VBAL	Vanguard	60/40	0.24%
XBAL	iShares	60/40	0.20%
VCNS	Vanguard	40/60	0.24%
XCNS	iShares	40/60	0.20%

Age-Based Selection

Age	Suggested Allocation
20-35	VEQT/XEQT (100% stocks)
35-50	VGRO/XGRO (80/20)
50-65	VBAL/XBAL (60/40)
65+	VCNS/XCNS (40/60) or bonds

Use asset allocation by age as the starting point for that range rather than treating it as a rigid rule.

How to Buy

On Questrade

Both available
Free to buy (no commission)
Sell for $4.95-9.95

On Wealthsimple Trade

Both available
Free to buy and sell
Best for frequent contributions

On Big Bank Brokerages

Both available
May pay $9.95/trade
Consider lump sum purchases

The Verdict

Aspect	Winner
Lower MER	XGRO (0.20% vs 0.24%)
Liquidity	VGRO (more volume)
Performance	Tie
Holdings transparency	Tie
Overall	Tie — both excellent

Bottom line: Pick one and stick with it. The difference is negligible. Focus on contributing consistently rather than optimizing between these two.

If you want a simpler benchmark against these 80/20 options, compare them with best ETF portfolio for $100 per month.