Let’s talk about one of the best growth ETF’s from Vanguard VGRO and also look at a couple of facts of VGRO and learn more on why we think it’s a very good investment for you in the long term. 

There’s no question that Vanguard ETF’s are one of the best in the market; always and low cost ETF’s in Canada.

Quick look at the Vanguard Group, Inc. as an Investment firm :

Founded: 1975
Total assets under management: $6.6 trillion*
Funds offered: 191 in the U.S., and 222 funds in markets outside the U.S.*
Headquarters: Valley Forge, Pennsylvania, USA
Chairman and CEO: Mortimer J. Buckley
Number of employees: More than 17,600 worldwide.

Vanguard Investments Canada Inc.

Founded: December 2011
Total assets under management: $17 billion*
Funds offered: 39 ETFs and 4 mutual funds*
Headquarters: Bay Adelaide Centre
22 Adelaide St. West
Suite 2500
Toronto, ON M5H 4E3
Managing director: Kathleen C. Bock
Number of employees: 56

Here’s the Overall Objective of the growth ETF (VGRO) “Vanguard Growth ETF Portfolio seeks to provide long-term capital growth by investing in equity and fixed income securities”

Key Fund Facts (VGRO ETF) :

  • Inception date : 25-01-2018

  • Net assets : $490.9 M

  • 12 month trailing yield : 

  • Distribution yield : 

  • Dividend schedule : Quarterly

  • Distribution per unit : $0.217646

  • Eligibility : RRSP, RRIF, RESP, TFSA, DPSP, RDSP

 

Top 10 holdings of VGRO ETF:

Rank Holdings
1 Royal Bank of Canada
2 Toronto-Dominion Bank
3 Enbridge Inc.
4 Bank of Nova Scotia
5 Canadian National Railway Co.
6 Microsoft Corp.
7 Suncor Energy Inc.
8 Apple Inc.
9 Bank of Montreal
10 Amazon.com Inc

As you see, the top 10 holdings of VGRO are all the biggies and blue chip stocks from US and Canadian stock markets. So all your investments are should be pretty much safe in the short to long run and keep growing. So, its all good here!

VGRO ETF – Allocation to underlying Vanguard funds

Fund Name

Percentage

Vanguard US Total Market Index ETF

31.3%

Vanguard FTSE Canada All Cap Index ETF

23.2%

Vanguard FTSE Developed All Cap EX North America Index ETF

18.6%

Vanguard Canadian Aggregate Bond Index ETF

12.5%

Vanguard FTSE Emerging Markets All Cap Index ETF

5.7%

Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged

4.9%

Vanguard US Aggregate Bond Index ETF CAD-hedged

3.8%

So the fund is well diversified across geographies and into multiple funds of different sectors. Its definitely safe and you can expect descent growth for sure. 

VGRO – Market capitalization in funds (Percentage wise)

As of close 31 December 2018
 
Allocation

Fund

Large

72.54%

Medium/Large

3.02%

Medium

12.40%

Medium/Small

5.33%

Small

6.70%

Total

100.0%

That’s 72.54% allocation into Large cap funds. Therefore your funds are so much more secured! Again Medium/Large cap 3% and the rest follows. 

Firstly, one of the leading asset managements is the world is Vanguard. As a result, it has over $6 trillion total assets in its possession and still growing. It is very reliable and can be used by several people. Above all, It’s got total assets of 571.8 Million and its production and income rates are growing every day.

No one can deny the pace at which vanguard is growing. It is also offering discounts to its users on a monthly and also on the annual basis.

VGRO Characteristics

As of close 31 December 2018

  Fund
Number of holdings 12,143
Median market cap 1.0 B
P/E ratio 12.8 x
P/B ratio 1.4 x
Return on equity 11.37%
Earnings growth rate 8.27%
Turnover (as of close -)

VGRO Investment Strategy 

  • Seeks to achieve its investment objective by primarily investing in equity and fixed income securities. It may do so either directly or indirectly through investment in one or more exchange traded funds managed by the manager or an affiliate or certain other investment funds.

  • In seeking to achieve the investment objective (under normal market conditions), the sub-advisor will strive to maintain a long-term strategic asset allocation of equity (approximately 80%) and fixed income (approximately 20%) securities.

  • The portfolio asset mix may be reconstituted and rebalanced from time to time at the discretion of the sub-advisor.

  • The underlying funds are expected to be index funds that provide exposure to broad-based equity and fixed income markets.

Couple of quick takes on VGRO. Types of portfolios here – 

  • Portfolio:

Like I said before, VGRO is very well diversified, In-fact it is the most diversified platform. Risk management here is pretty low too. It has five different diverse sectors as we discussed before. 

  • Income Portfolio:

VGRO Growth ETF has a specific Income Index. What it mean is it has a fixed and a very modest income rate. Different factors are considered while assigning this income stuff to the VGRO team. It has the lowest management fee of 0.22%. Risk rating is very low too!

  • Conservative Portfolio:

It’s the second type of the VGRO ETF portfolio. It has a fixed income of 60%. Long term capital growth is provided here. One can invest directly or by indirect means. ETF has seven low index investment plans. This is best for those who want to invest in moderate or long term income growth. However, the management fee is same 0.22% and chances of risk are very low.

  •  Growth Portfolio:

This has a fixed 20 to 80% ratio of equity and fixed percentage respectively. It’s best for low to medium risk investors.

  •  All equity Portfolio:

Here the portfolio has 100% of equity and 0% of fixed income. But the risk rate is increased from medium to high in this type of portfolio as its all equity. On the other hand, fees still remains at 0.22% as in other portfolio types.

VGRO Trading Information 

  • Ticker symbol : VGRO

  • CUSIP : 92207X105

  • SEDOL: BF7ML33

  • ISIN : CA92207X1050

  • Exchange: Toronto Stock Exchange

  • Currency : CAD

VGRO Fees:

Management fee: 0.22%

MER: 0.25%

Advantages of VGRO ETF:

  • Cost effective: VGRO portfolios are extremely low cost compared to others. Low-cost portfolios usually return big profits.

  • Assets management: Mix of assets are designed to meet the requirement of every investor.

  • Detailed diversification: Fixed markets of income and equity will help bringing a sustainable and risk-free returns. That’s the dream of every investor.

  • Regular Maintenance: Folks at Vanguard VGRO always keep rebalancing the rates and Interest percentages. As a result you save all the headache and costs of the rebalancing stuff. 

Conclusion 

Vanguard’s Growth VGRO ETF is really good for your TFSA’s, RRSP’s or brokerage investments.

Please feel free to comment below and let us know your thoughts.

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Robert W.

I am kind of surprised to see Amazon on that list but really, I shouldn’t be given that it is 2019 and they are a powerful company. Great overview of VGRO. I came here expecting to have a few questions but I believe you answered them all in this article.

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