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% |
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) |
β |
$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
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 |
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 |
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 β both excellent |
Bottom line: Pick one and stick with it. The difference is negligible. Focus on contributing consistently rather than optimizing between these two.