The main difference between VEQT and VGRO is that VEQT by definition is an all-equity ETF while VGRO provides exposure to both equity and fixed income asset classes within its package.
As a result, VEQT offers investors exposure to equities across US, Canadian, developed (excluding North America), and emerging markets.
VGRO offers investors the same equity exposures, but also provides balanced growth opportunities through fixed income ETFs focused on the Canadian bond, global bond (excluding US), and US bond markets.
The target asset allocation for VEQT is 100% equity securities.
The asset allocation for VGRO is 80.8% equities and 19.1% bonds with the small remainder held in cash.
The Vanguard All-Equity ETF Portfolio was launched in January 2019 and is invested into global equity markets across US, Canada, developed economies (excluding North America), and emerging economies.
The fund is primarily deployed into large-cap equities (80.2%) with the remainder split amongst mid to large-cap (2.6%), mid-cap (8.5%), mid to small-cap (4.05%), and small-cap (4.5%).
As of January 31, 2023, the ETF had $2.4 billion in cumulative market value.
Since its inception, the VEQT ETF has delivered 9.74% annualized returns with a 3-year return of 7.80%.
The Vanguard Growth ETF Portfolio includes both the aforementioned equity exposures, as well as fixed income exposures in both investment grade (98.1%) and high-yield bonds (1.9%).
From a sector standpoint, VGRO is oriented largely towards financial services (20.2% of assets), technology (15.7%), industrials (13.0%), consumer discretionary (11.7%), energy (8.7%), and healthcare (8.7%) with the remainder split amongst materials, consumer staples, utilities, real estate and telecommunications.
As of January 31, 2023, the ETF had delivered 5.79% annualized returns since inception with a 5-year return of 6.05%.
Performance: VEQT vs VGRO
VEQT Annualized Performance as of March 6, 2023:
- 3-Year: 7.80%
- Since inception: 9.74%
VGRO Annualized Performance as of March 6, 2023:
- 3-Year: 5.73%
- 5-Year: 6.05%
- Since inception: 5.79%
Both VEQT and VGRO offer a Management Expense Ratio (MER) of 0.24% which is largely comprised of the 0.22% management fee.
Below are the top holdings within VEQT and VGRO:
- Vanguard U.S. Total Market ETF (42.11%)
- Vanguard FTSE Canada All Cap Index ETF (30.40%)
- Vanguard FTSE Developed All Cap ex North America Index ETF (19.97%)
- Vanguard FTSE Emerging Markets All Cap Index ETF (7.52%)
- Vanguard U.S. Total Market ETF (34.69%)
- Vanguard FTSE Canada All Cap Index ETF (24.11%)
- Vanguard FTSE Developed All Cap ex North America Index ETF (16.22%)
- Vanguard Canadian Aggregate Bond Index ETF (11.34%)
- Vanguard FTSE Emerging Markets All Cap Index ETF (5.83%)
- Vanguard Global ex-U.S. Aggregate Bond Index ETF (CAD-hedged) (3.96%)
- Vanguard U.S. Aggregate Bond Index ETF (CAD-hedged) (3.85%)
Frequently Asked Questions
- Does VEQT track the S&P 500?
No, VEQT also provides exposure to global stocks outside of the US while the S&P 500 tracks the performance of the 500 largest stocks in the US by market capitalization. VEQT is invested in equities across the US, Canada, developed and emerging markets.
- Does VGRO reinvest dividends?
Yes, VGRO can reinvest dividends at the discretion of the investor. When cash distributions (dividends) are paid, they can be used to acquire new units of the ETF which are then credited to the investor’s account. However, investors need to elect this option with their brokerage.
- Does VGRO pay monthly dividends?
VGRO’s dividend payment schedule is quarterly. However, monthly dividends may be paid depending on the schedule of the underlying ETFs.