XGRO vs VGRO: Which 80/20 ETF Should You Hold?
XGRO and VGRO are the two most popular 80/20 all-in-one ETFs for Canadian investors. Both cost 0.20% per year, both hold roughly 80% global equities and 20% bonds, and both rebalance automatically. So why does the choice matter at all? It mostly doesn't — but here's what you should know.
What are XGRO and VGRO?
XGRO is the iShares Core Growth ETF Portfolio from BlackRock. VGRO is the Vanguard Growth ETF Portfolio from Vanguard Canada. Both are designed as complete, all-in-one portfolios that hold roughly 80% global equities and 20% investment-grade bonds — and both rebalance their internal holdings automatically so you never have to touch them.
How they compare: the key numbers
| XGRO | VGRO | |
|---|---|---|
| Provider | iShares (BlackRock) | Vanguard Canada |
| MER | 0.20% | 0.20% |
| Equity weight | ~80% | ~80% |
| Bond weight | ~20% | ~20% |
| Canadian equity | ~23% | ~24% |
| Distributions | Quarterly | Quarterly |
| AUM | ~$3B | ~$4B |
The one real difference: underlying funds
Both ETFs hold the same broad asset classes — Canadian stocks, US stocks, international stocks, and Canadian bonds — but they do it through different underlying funds. XGRO uses iShares ETFs (XIC for Canada, XUU for US, XEF for international developed, XEC for emerging markets, XBB for bonds). VGRO uses Vanguard ETFs (VCN for Canada, VUN for US, VIU for international, VEE for emerging markets, VAB for bonds).
XGRO holds
- XIC — iShares S&P/TSX Capped Composite
- XUU — iShares Core S&P US Total Market
- XEF — iShares MSCI EAFE IMI
- XEC — iShares MSCI Emerging Markets
- XBB — iShares Core Canadian Universe Bond
VGRO holds
- VCN — Vanguard FTSE Canada All Cap
- VUN — Vanguard US Total Market
- VIU — Vanguard FTSE Developed All Cap ex-NA
- VEE — Vanguard FTSE Emerging Markets All Cap
- VAB — Vanguard Canadian Aggregate Bond
The underlying ETFs track slightly different indices (iShares tracks MSCI indices; Vanguard tracks FTSE indices), but the real-world performance difference between them is negligible over any meaningful period. Both give you virtually identical global market exposure.
XGRO vs VGRO vs XEQT vs VEQT
The bigger choice is between an 80/20 ETF (XGRO or VGRO) and a 100% equity ETF (XEQT or VEQT). The 20% bond allocation in XGRO and VGRO reduces volatility but also reduces expected long-term return. For investors with a long time horizon who can stomach drawdowns, XEQT or VEQT is often the better choice.
| ETF | Equity | Bonds | MER | Best for |
|---|---|---|---|---|
| XEQT / VEQT | 100% | 0% | 0.20% | 20s–40s, long horizon, high risk tolerance |
| XGRO / VGRO | 80% | 20% | 0.20% | 30s–50s, moderate growth, some stability |
| XBAL / VBAL | 60% | 40% | 0.20% | 40s–60s, approaching retirement, lower volatility |
| XCNS / VCNS | 40% | 60% | 0.20% | Near or in retirement, income-focused |
Frequently asked questions
Is XGRO or VGRO better?
Neither is meaningfully better than the other. Both are 80/20 all-in-one ETFs at 0.20% MER. The underlying index providers differ (iShares vs Vanguard), but long-run performance is virtually identical. Pick either and stick with it.
What is the difference between XGRO and XEQT?
XGRO is 80% equities and 20% bonds, making it a growth portfolio with built-in stability. XEQT is 100% equities with no bonds — higher expected long-term return but more volatile. XEQT suits investors with a long time horizon who can tolerate large drawdowns.
Can I hold XGRO or VGRO in my TFSA?
Yes. XGRO and VGRO are Canadian-listed ETFs, so they are fully efficient in a TFSA — no US withholding tax applies to dividends. They work equally well in an RRSP, FHSA, or non-registered account.
What is XGRO's current yield?
XGRO's distribution yield is approximately 1.5–2.5%, paid quarterly. The exact amount varies with bond interest and equity dividends. For a growth-oriented portfolio, total return (price appreciation plus distributions) matters more than yield alone.