The main difference between XGRO and VGRO lies in the fact that each ETF invests in a portfolio of ETFs that have slightly differing underlying holdings and allocations.
The XGRO ETF is under the BlackRock family of ETFs while VGRO is run by Vanguard.
Broadly speaking, both ETFs have a similar mandate to accelerate long-term capital growth through diversified exposure to global equity and fixed income securities.
The VGRO ETF from Vanguard offers a distribution yield of 2.56% (as of June 30, 2024) versus the 2.94% (as of August 2, 2024) yield provided by BlackRock’s XGRO.
When comparing holdings between the two ETFs, both have similar compositions of roughly 80% equities and 20% fixed income (bonds).
Additionally, both VGRO and XGRO are comprised of ETFs providing exposure to: (i) US equities, (ii) Canadian equities, (iii) developed market equities, (iv) Canadian bonds, and (v) emerging markets equities.
However, there are slight nuances such as the fact that XGRO has exposure to US Treasury Bonds while VGRO has greater exposure to broader bond classes (i.e., corporate and government) across both the US and outside of US.
A full list of holdings is provided further below.
Depending on an individual’s investment goals and personal preferences for geographic and asset class exposure, both VGRO and XGRO can be solid options for building long-term wealth with a stable distribution history.
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XGRO
Launched in 2007, XGRO tracks the performance of multiple BlackRock iShares ETFs that are invested across different asset classes and geographies.
Through the ETF, investors can receive quarterly dividend and interest income from indirect exposure to stocks and bonds paying out regular distributions to unitholders.
Classified as a long-term core holding by BlackRock, XGRO allows investors to access securities in both developed and emerging markets to drive low-risk capital appreciation.
XGRO is rated as low to medium risk given that it is highly diversified by both geography and asset classes.
For investors seeking a low-cost way to tap into the potentially dynamic growth of emerging markets while continuing to enjoy the stability and robustness of developed markets, XGRO is a worthwhile option.
Since inception, XGRO has delivered 4.91% annualized growth with a 5-year annual performance of 9.48% (as of July 31, 2024). As of the same date, XGRO had total assets of $2.4 billion.
VGRO
VGRO was launched in January 2018 and similar to XGRO, it provides investors with exposure to both equity and fixed income securities across developed markets and emerging markets with a special focus on Canada and the US.
As aforementioned, both XGRO and VGRO share many of the same underlying holdings.
However, VGRO is invested into slightly higher dividend-yielding stocks, making it a better option for investors seeking long-term capital growth alongside modest income generation.
VGRO also offers quarterly dividend payouts and is rated at low to medium on account of its high-quality diversification by both geography and asset class.
Since its inception, VGRO has delivered 7.78% annualized returns with a 5-year return of 9.05% (July 31, 2024). The ETF had $5.41 billion in assets under management as of Aug 2, 2024.
XGRO vs VGRO Performance
XGRO Annualized Performance (as of July 31, 2024):
- 3-Year: 6.59%
- 5-Year: 9.48%
- 10-Year: 7.48%
- Since inception: 4.91%
VGRO Annualized Performance (as of July 31, 2024):
- 3-Year: 6.29%
- 5-Year: 9.05%
- Since inception: 7.78%
XGRO vs VGRO Fees
XGRO has a Management Expense Ratio (MER) of 0.20% which is largely comprised of its 0.18% management fee.
VGRO has a Management Expense Ratio (MER) of 0.24% which is largely comprised of its 0.22% management fee.
XGRO vs VGRO Holdings
XGRO:
The top security holdings within XGRO (top 10 holdings as a % of asset value)
- iShares Core S&P Total US Stock Market ETF (35.83%)
- iShares S&P/TSX Capped Composite ETF (19.85%)
- iShares MSCI EAFE IMI Index ETF (19.59%)
- iShares Core Canadian Universe Bond Index ETF (13.05%)
- iShares MSCI Emerging Market ETF (4.12%)
- iShares Core Canadian Short Term Bond Index ETF (3.22%)
- iShares US Treasury Bond ETF (2.05%)
- iShares Broad USD Investment Grade Corporate Bond ETF (2.05%)
- USD Cash (0.18%)
- CAD Cash (0.04%)
Within XGRO, top 10 aggregate underlying holdings are as follows:
- Apple Inc. (2.16%)
- Microsoft Corp. (2.10%)
- Nvidia Corp (1.77%)
- Royal Bank of Canada (1.31%)
- Amazon.com Inc. (1.06%)
- Toronto Dominion (0.87%)
- Meta (0.75%)
- Enbridge Inc. (0.70%)
- Alphabet Inc. (0.67%)
- Canadian Natural Resources Ltd. (0.63%)
As of August 5, 2024
VGRO:
The top security holdings within VGRO (top 10 holdings as a % of asset value) are as follows:
- Vanguard U.S. Total Market ETF (36.64%)
- Vanguard FTSE Canada All Cap Index ETF (23.24%)
- Vanguard FTSE Developed All Cap ex North America Index ETF (14.53%)
- Vanguard Canadian Aggregate Bond Index ETF (11.60%)
- Vanguard FTSE Emerging Markets All Cap Index ETF (5.43%)
- Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (3.98%)
- Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (3.89%)
Within VGRO, sector and industry concentration is as follows:
- Technology (22.12%)
- Financial Services (19.2%)
- Industrials (12.64%)
- Consumer Discretionary (11.49%)
- Energy (8.1%)
- Healthcare (7.73%)
- Materials (5.7%)
- Consumer Staples (4.27%)
- Utilities (3.66%)
- Telecommunications (2.6%)
- Real Estate (2.48%)
As of June 30, 2024
