VEQT vs VGRO: All-Equity or Growth Portfolio?
VEQT and VGRO are both from Vanguard and share the same underlying equity ETFs. The key difference: VEQT is 100% equities while VGRO holds 20% bonds. This means VGRO has lower expected volatility but also lower expected long-term returns. The choice comes down to your risk tolerance and investment horizon.
Normalized Performance (% change)
Source: Yahoo Finance · Normalized to % change from start of period
| Metric | VEQT | VGRO |
|---|---|---|
| Price | ||
| MER | ~0.20%* | ~0.20%* |
| AUM | $11.2B | $6.5B |
| Dividend Yield | ||
| YTD Return | ||
| 1Y Return | ||
| Holdings | 13,700+ | 13,700+ |
| Inception Date | Jan 2019 | Jan 2018 |
| Equity / Fixed Income | 100% / 0% | 80% / 20% |
| Distribution Freq. | Annually | Annually |
Live data from Yahoo Finance · Static data (MER, AUM, holdings) updated periodically
Geographic Allocation Comparison
VEQT
VGRO
Who each fund suits best
VEQT
VanguardThe original all-in-one equity ETF, built by the company that invented index investing. Broadest diversification (13,700+ holdings), market-cap-weighted global allocation, and backed by Vanguard's investor-owned structure.
VGRO
VanguardInvestors who want built-in bond exposure (80/20 equity/bond split) for slightly less volatility than VEQT.
Frequently Asked Questions
Both are all-equity, globally diversified ETFs designed for long-term Canadian investors. The main differences are provider (Vanguard vs iShares), MER (0.24% vs 0.20%), and geographic allocation — XEQT has more US exposure (45% vs 40%) and less Canada (25% vs 30%). In practice, their performance has been very similar. Choose based on your brokerage, preferred provider, or whether you want a slight Canada or US tilt. This is not financial advice — consider your own investment goals.
A lower MER means you keep more of your returns, all else being equal. However, a 0.04% MER difference (like VEQT vs XEQT) is very small — on a $100,000 portfolio, that's $40/year. Other factors like geographic allocation, tracking error, and your brokerage's commission structure may matter more in practice. Don't let a tiny MER difference be the sole deciding factor.
Lower AUM (assets under management) can mean wider bid-ask spreads and slightly lower liquidity, which may result in marginally higher trading costs. However, ZEQT's AUM of ~$1.2B is still substantial and growing. For most buy-and-hold investors placing market orders during trading hours, the difference in liquidity between ZEQT and VEQT is negligible. AUM becomes more relevant for very large trades or limit orders.
This depends on your risk tolerance and time horizon. VEQT is 100% equities — higher expected long-term returns but more volatility. VGRO is 80% equities and 20% bonds — slightly lower expected returns but smoother ride during downturns. If you have 10+ years and can stomach 30-40% drops without panicking, VEQT is the more aggressive choice. If you want a built-in cushion, VGRO provides that. Neither is objectively better — it depends on your personal situation.
VFV tracks only the S&P 500 — the 500 largest US companies. While it has performed very well historically, it provides zero exposure to Canadian, international, or emerging market stocks. A true all-in-one ETF like VEQT or XEQT gives you global diversification in a single purchase. VFV is a great fund, but it's a US-only bet. Combining it with other ETFs to get global coverage defeats the simplicity that makes all-in-one funds attractive.