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 :
|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.
|Total assets under management:||$17 billion*|
|Funds offered:||39 ETFs and 4 mutual funds*|
|Headquarters:||Bay Adelaide Centre
22 Adelaide St. West
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:
|1||Royal Bank of Canada|
|4||Bank of Nova Scotia|
|5||Canadian National Railway Co.|
|7||Suncor Energy Inc.|
|9||Bank of Montreal|
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
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)
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.
As of close 31 December 2018
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 –
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
ISIN : CA92207X1050
Exchange: Toronto Stock Exchange
Currency : CAD
Management fee: 0.22%
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.
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.
I’m a Canadian Blogger with Interest in Personal Finance including Savings, Investing, Stocks & ETF reviews, Side Hustles, Frugal Living, and Retirement Planning. Husband. Father. Web Designer. Hiking Enthusiast