VGRO vs XGRO: Key Differences
The main difference between VGRO and XGRO is their geographical exposure and bond strategy. VGRO (Vanguard) has a higher “home bias” with roughly 25% Canadian equity, while XGRO (iShares) leans more toward the U.S. market. Additionally, XGRO includes U.S. Treasury bonds, whereas VGRO provides broader international bond exposure.
Both funds are Canadian-listed, trade in CAD on the TSX, and maintain an identical 80% equity / 20% fixed income split.
What is an All-in-One ETF?
An all-in-one ETF (also known as an asset allocation ETF or one-ticket solution) is a single investment fund that holds a globally diversified portfolio of thousands of stocks and bonds. These funds are designed to be a complete, “set-it-and-forget-it” portfolio for Canadian investors by automatically rebalancing their holdings to maintain a specific risk level, such as 80% equity and 20% fixed income. By bundling multiple underlying ETFs into one ticker, they provide instant diversification and professional management at a much lower cost than traditional mutual funds.
Comparing VGRO vs XGRO by the Numbers
| Vanguard (VGRO.TO) | iShares (XGRO.TO) | |
| Total MER | 0.24% | 0.20% |
| Asset Allocation | 80% Equity / 20% Bonds | 80% Equity / 20% Bonds |
| Total Holdings in Each ETF | 13,500+ | 9,000+ |
| Bond Strategy | Global & International | U.S. Treasuries & Canadian |
| 5 Year Annualized Rate of Return | 11.03% | 11.22% |
For more specifics on each ETF, click on either one: VGRO or XGRO.
Key Differentiators between VGRO & XGRO
While both ETFs offer an 80% equity and 20% bond split, they diverge in their specific regional weights and bond security types. Here are the key differences between VGRO & XGRO to keep in mind:
The Fee War
In late 2025, the cost of these funds dropped significantly. Vanguard announced its biggest fee cut in history on November 18, 2025, slashing VGRO’s management fee to 0.17%. iShares followed suit, matching the 0.17% rate effective December 18, 2025. For the first time, these two giants are essentially tied on cost (although (XGRO’s total MER is still lower), making other factors more important than ever.
Geographical “Home Bias”
Both funds “overweight” Canada compared to its actual size in the global market to provide tax efficiency. However, VGRO has a stronger home bias, holding roughly 25% in Canadian stocks. XGRO is slightly more globally focused, dedicating more weight to the U.S. market (often 3–4% more than VGRO), which has contributed to its slight performance lead over the last five years.
Bond Composition and Perceived Safety
The fixed-income portions of these funds are managed differently. XGRO is unique because it includes U.S. Treasury bonds, which are often viewed as a superior safe haven during global market crashes. VGRO offers broader global diversification by including Global ex-U.S. bonds hedged to the Canadian dollar, protecting you from a purely North American bond downturn.
Final Thoughts: Should You Buy VGRO or XGRO?
Ultimately, choosing between VGRO and XGRO is a win-win scenario for any Canadian DIY investor looking for exposure to equities and bonds. If you prioritize a slightly higher Canadian home bias and broader global bond diversification, VGRO is the classic choice. However, if you prefer a lower fee, a slight tilt toward U.S. markets, XGRO might be the better fit for your portfolio. Regardless of which you select, the key to long-term success isn’t the minor difference in MER, but your commitment to staying invested and contributing regularly.
If you enjoyed this article, click here to check out our recent comparison of VCN vs XIC.
