Vanguard’s VGRO is one of the best growth ETFs in the Canadian market right now. 

In this article let’s look at the factors that’ll make investing in VGRO great and why it is something you need to consider. Also, let’s look at the Pros and Cons of VGRO ETF from an investment standpoint and learn more about why I think it’s a very good investment for you in the long term. Now then, let’s get started. 

What Is VGRO ETF?

Before we move on to bigger stuff let’s first start with looking into the VGRO ETFs objective from Vanguard’s official website – “Vanguard Growth ETF Portfolio seeks to provide long-term capital growth by investing in equity and fixed income securities”

If you are going to ask me, there’s no question that Vanguard ETFs are one of the best in the market; always and low-cost ETFs in Canada.

Also Read – RRIF vs. Annuity Review: Top 5 Features & Comparison

Vanguard Group As An Investment Firm 

Vanguard is one of the world’s largest and leading asset management companies, with more than $6 trillion in assets under management globally. It has 100’s of mutual funds and ETFs under its portfolios in each of the different sectors and risk types.

Below is a quick snapshot of Vanguard: 

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
The 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
The number of employees:56

VGRO Growth ETF – Key Fund Facts 

Let’s now look at the VGRO ETFs Fund Facts – 

  • Inception date : 25-01-2018

  • Net assets: $490.9 M

  • 12-month trailing yield: NA

  • Distribution yield: NA

  • Dividend schedule: Quarterly

  • Distribution per unit: $0.217646

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

Also Read –Top 10 Canadian Marijuana Stocks You Should Own In 2020

Top 10 Holdings Of VGRO ETF

Below is the list of the top 10 Largest Holdings Of VGRO ETF – 

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

As you just saw, the top 10 holdings of VGRO are all the biggies in the industry and reputed blue-chip companies from the US and Canadian stock markets.

That means to only say that, all of your investments are pretty much safe in the short to the long run and keep growing. So, it is all good here!

When you compare VGRO to the likes of VBAL and VCNS, which are other great picks when it comes to ETFs – The advantage you get with VGRO is that – almost 80% of the portfolio is made of equities or stocks and the rest 20% into bonds. As a matter of fact, more weight age into the equities is always better if your intention is inclined towards faster investment growth. 

VGRO

VGRO ETF – Allocation To Underlying Vanguard Funds

First of all, one of the leading asset management companies in the world is Vanguard. As a result, it has over $6 trillion total assets in its possession and still growing.

Above all, It’s got total assets of 571.8 Million and its production and income rates are growing every day.

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%

Do you see how well VGRO is diversified into sectors? This is what I was talking about in the previous section. All of your hard-earned money is split across different portfolios across – The US Blue chips, Canadian Blue chips, Emerging markets – like Japan and India. By diversifying into multiple sectors – your money is not only that much safer but you gain the benefit of market fluctuation and currency hedging. 

In a nutshell, VGRO is well diversified across geographies and into multiple high performing funds of different sectors. 

So It’s definitely safer and sound, and you can definitely expect decent to excellent growth over the period of time. Please remain invested for a longer period of time, that’s how you can actually see the greater returns, by compounding. 

Also Read – Top 7 Canadian ETFs You Should Own In 2020

VGRO – Market capitalization In Funds (Percentage-Wise)

I’ve listed below the fund allocation and percentage for VGRO ETF. 

Fund 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.

You might ask – What Are large-cap funds? 

According to Investopedia – A large-cap (sometimes called “big cap”) refers to a company with a market capitalization value of more than $10 billion. Large-cap is a shortened version of the term “large market capitalization.” Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its stock price per share. A company’s stock is generally classified as large-cap, mid-cap or small-cap.

Again Medium/Large cap 3% and the rest follows. 

VGRO Characteristics

 Fund
Number of shareholdings12,143
Median market cap1.0 B
P/E ratio12.8 x
P/B ratio1.4 x
Return on equity11.37%
Earnings growth rate8.27%

The total number of stock holdings in VGRO ETF is a staggering 12,143 stocks! Out of that, we’ve only seen the top 10 large-cap holdings in the previous section. 

VGRO Market Allocation Exposure By Region

This is what I mean by saying VGRO is well-diversified geographically.

Stats below:

Market AllocationFund
United States40.4%
Canada30.6%
Japan5.5%
United Kingdom3.6%
China2.3%

VGRO Sectorise Breakup 

SectorFund 
Financials26.4% 
Industrials13.4% 
Technology12.1% 
Consumer Services10.7% 
Consumer Goods8.8% 
Oil & Gas8.6% 
Health Care7.8% 
Basic Materials6.1% 
Utilities3.5% 
Telecommunications2.6% 
Other0.0% 
Total100.0% 

VGRO Growth ETF Performance Since Inception 

Below is the chart representing the growth of the VGRO ETF since inception and how well it has performed over the years in terms of generating returns. 

VGRO

 

 

 

 

 

 

 

 

 

 

 

 

What Is VGRO’s Investment Strategy?

  • VGRO ETF 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.

Also Read – Rakuten Canadian Review – How To Earn Unlimited Cash Back?

 

VGRO

VGRO Portfolio Types

1. Portfolio Well Diversified Globally

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.

2. Income Portfolio

VGRO Growth ETF has a specific Income Index. What it means is it has a fixed and 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%. The risk rating is very low too!

3. 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 the same as 0.22% and chances of risk are very low.

4. 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.

5. 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 remain at 0.22% as in other portfolio types.

Also Read – Top 7 Free Chequing Accounts In Canada

VGRO Trading Information – TSX

Below is the trading information of the VGRO ETF – 

  • Ticker symbol: VGRO

  • CUSIP : 92207X105

  • SEDOL: BF7ML33

  • ISIN: CA92207X1050

  • Exchange: Toronto Stock Exchange

  • Currency: CAD

What Are The Fees Associated With VGRO ETF?

1. Management fee of 0.22%

2. MER (Management Expense Ratio) of 0.25%

Advantages (Pros) Of VGRO ETF

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

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

3. Detailed diversification: Fixed markets of income and equity will help to bring a sustainable and risk-free return. That’s the dream of every investor.

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

Also Read – Rakuten Canadian Review – How To Earn Unlimited Cash Back?

Conclusion 

Vanguard’s Growth VGRO ETF is really good for your investments – Be it in your TFSA’s, RRSP’s or brokerage. The kind of returns seen here are really good, also the overall objective of this ETF is robust with 75% of large-cap US and Canadian stocks. 

Also, we saw that VGRO is globally diversified across multiple asset types and markets. 

Please share this article if it was helpful and also feel free to comment below and let me know your thoughts.

Top 10 Latest and Popular Posts

VGRO Growth ETF Review

4.75

Value For Money

5.0/5

Benefits

4.8/5

Rewards

4.5/5

Pros

  • Cost effective
  • Assets management
  • Detailed Diversification into assets

Cons

  • Management fee: 0.22%
  • MER : 0.25%

Sagar Sridhar

Sagar Sridhar Is a Personal Finance Blogger from Toronto, Canada. He is a Computer Science Engineer by profession and works in IT Industry. What started as a hobby, quickly turned into serious blogging and income. In this blog, Sagar passionately writes articles about Personal Finance, DIY Investing, Retirement, Stocks & ETFs, Frugal Living and much more. Do visit about page to know more about him. If you would like to get in touch, you can do so by emailing him at [email protected] and he'll get back to you at the earliest.

2 thoughts on “VGRO Review – Vanguard’s Best Growth ETF In 2020

  • 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.

    Reply
    • Thanks Robert!

      Reply

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