XGRO and VGRO are two popular all-in-one exchange-traded funds (ETFs) that offer investors a diversified portfolio of stocks and bonds. Both ETFs are managed by Vanguard and have similar asset allocations, but there are a few key differences between them.
Asset Allocation
The main difference between XGRO and VGRO is their asset allocation. XGRO has a slightly higher allocation to Canadian equities (23.2% vs. 20.51%) and a slightly lower allocation to emerging markets equities (10.95% vs. 12.81%) than VGRO. This means that XGRO is slightly more exposed to the Canadian economy, while VGRO is slightly more exposed to emerging markets.
Management Expense Ratio (MER)
The MER is a measure of an ETF’s annual expenses, expressed as a percentage of the ETF’s net asset value (NAV). XGRO has a slightly lower MER (0.20%) than VGRO (0.24%). This means that XGRO is slightly cheaper to own than VGRO.
Performance
Both XGRO and VGRO have track records of strong performance. Over the past 10 years, XGRO has had an average annual return of 7.9%, while VGRO has had an average annual return of 7.8%.
Which ETF is Right for You?
The best ETF for you will depend on your individual investment goals and risk tolerance. If you are a Canadian investor who is comfortable with a slightly higher allocation to Canadian equities, then XGRO may be a good option for you. If you are looking for an ETF with a slightly lower MER and a slightly higher allocation to emerging markets equities, then VGRO may be a better choice.
Here is a table summarizing the key differences between XGRO and VGRO:
| Feature | XGRO | VGRO |
|---|---|---|
| Asset allocation | 80% equities, 20% bonds | 80% equities, 20% bonds |
| Canadian equities | 23.2% | 20.51% |
| Emerging markets equities | 10.95% | 12.81% |
| MER | 0.20% | 0.24% |
| Average annual return (10 years) | 7.9% | 7.8% |
Please note that this is not financial advice. Before investing in any ETF, you should carefully consider your investment goals, risk tolerance, and time horizon. You should also consult with a financial advisor to get personalized advice.
I hope this blog post has been helpful. If you have any other questions, please feel free to leave a comment below.