What is the difference between VBAL and VGRO?

VBAL is 60% stocks and 40% bonds (balanced). VGRO is 80% stocks and 20% bonds (growth). VGRO has higher expected returns but more volatility. VBAL is more conservative with smaller drawdowns.

Is VGRO better than VBAL?

VGRO has historically delivered higher long-term returns because of its higher stock allocation. But VBAL drops less during crashes. VGRO is better for investors with 15+ year horizons and high risk tolerance.

Can I switch from VBAL to VGRO?

Yes. In a TFSA or RRSP, you can sell VBAL and buy VGRO with no tax consequences. In a non-registered account, selling triggers capital gains tax on any profits.

VBAL vs VGRO 2026 | Which Vanguard All-in-One ETF?

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

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

Historical Performance

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.

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

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.

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.