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For Canadian investors seeking low-cost, diversified ETFs, Vanguard’s VFV and VGRO are popular choices. But which one is right for you? Should you go all-in on the U.S. market or take a balanced, global approach? Let’s break down their differences and see which one fits your strategy.
Quick verdict: Choose VFV for concentrated, low-cost S&P 500 exposure (0.09% MER) — better if you’ll build the rest of your diversification yourself. Choose VGRO for a one-fund 80/20 globally diversified portfolio with built-in bonds (0.24% MER) — better as a complete set-and-forget solution.
What is VFV?
VFV (Vanguard S&P 500 Index ETF) tracks the S&P 500, providing exposure to 500 of the largest U.S. companies like Apple, Microsoft, and Amazon.
- Asset Class: 100% equities (U.S. large-cap stocks).
- Risk Level: High (concentrated in U.S. equities).
- MER: 0.09% (ultra-low cost).
- Best For: Investors bullish on U.S. market growth and comfortable with volatility.
Key Advantage: Historically strong returns from top U.S. tech and blue-chip stocks.
Average 5 Year Return: 13.97%
What is VGRO?
VGRO (Vanguard Growth ETF Portfolio) is a balanced all-in-one ETF with 80% global equities and 20% bonds. It holds 13,760 stocks and 17,148 bonds across 7 underlying Vanguard ETFs.
For a cleaner Vanguard all-in-one comparison, see our VEQT vs VGRO guide, which looks at Vanguard’s 100% equity fund against its 80/20 growth portfolio.
If your real decision is Canadian dividend income versus U.S. stock-market growth, our VDY vs VFV comparison is the cleaner match.
- Asset Class: 80% stocks (global), 20% bonds.
- Risk Level: Moderate (diversified, bonds reduce volatility).
- MER: 0.24% (Vanguard reduced the underlying management fee from 0.22% to 0.17% in November 2025; the MER reflects total cost including underlying funds).
- Best For: Hands-off investors seeking growth with built-in diversification and lower risk.
Key Advantage: Automatic rebalancing and global exposure (Canada, U.S., international markets).
Average 5 Year Return: 9.88%
VFV vs VGRO: Quick Comparison
| Factor | VFV | VGRO |
|---|---|---|
| Asset Mix | 100% U.S. stocks | 80% global stocks, 20% bonds |
| Risk | High (no diversification) | Moderate (bonds cushion drops) |
| Returns | Tied to S&P 500 performance | More stable, lower highs/lows |
| Dividends | ~1.2% yield | ~1.9% yield |
| Ideal Investor | Aggressive, U.S.-focused | Balanced, long-term growth |
Fund data sourced from Vanguard Canada VFV and VGRO fact sheets dated March 31, 2026. ETF metrics change quarterly — verify current figures before investing.
Which Should You Choose?
Pick VFV If…
- You want pure exposure to U.S. megacaps.
- You’re confident in the S&P 500’s long-term growth.
- You already hold bonds or Canadian equities elsewhere.
Pick VGRO If…
- You want a “set-and-forget” portfolio.
- You prefer global diversification and lower volatility.
- You’re saving for retirement or a long-term goal (10+ years).
Historical Performance of VFV vs VGRO
Understanding the historical performance of VFV vs VGRO can provide insights into their potential future returns and help investors make informed decisions.
Vanguard S&P 500 Index ETF (VFV):
- Objective: VFV aims to replicate the performance of the S&P 500 Index, providing exposure to 500 large-cap U.S. companies.
- Performance Highlights:
- 2020: 15.59%
- 2021: 27.64%
- 2022: -12.69%
- 2023: 23.25%
- 2024: 35.24%
- 2025: 12.23%
Vanguard Growth ETF Portfolio (VGRO):
- Objective: VGRO seeks to provide long-term capital growth by investing in a diversified portfolio of equity and fixed income securities, with an emphasis on equities.
- Performance Highlights:
- 2020: 10.83%
- 2021: 14.97%
- 2022: -11.21%
- 2023: 14.86%
- 2024: 20.24%
- 2025: 16.86%
Key Takeaways:
- VFV: Offers higher returns, reflecting the performance of the U.S. stock market, but comes with increased volatility.
- VGRO: Provides more stable returns due to its diversified asset mix, balancing growth potential with risk mitigation.
- The 2025 reversal: 2024 was a year where pure U.S. equity (VFV +35.24%) far outpaced balanced (VGRO +20.24%), but 2025 flipped — VGRO returned +16.86% versus VFV’s +12.23% as international and Canadian markets caught up. This is exactly the volatility-vs-stability tradeoff the two funds embody.
When choosing between VFV and VGRO, consider your investment horizon, risk tolerance, and financial objectives. While past performance is not indicative of future results, historical data can offer valuable context for your investment decisions.
Where to Buy VFV and VGRO
Both VFV and VGRO trade on the Toronto Stock Exchange and are available at every major Canadian brokerage. To maximize your returns, look for platforms that offer commission-free ETF trades — a $9.99 commission per trade on a $1,000 contribution is a real drag on long-term compounding.
For Canadian DIY investors, Questrade is one of the most common picks: Canadian-listed ETF buys are commission-free, and the platform supports separate CAD and USD account balances. Open a Questrade account to get started, or compare alternatives in our Wealthsimple vs Questrade review.
Final Thoughts
VFV and VGRO cater to different investor profiles. VFV is a high-risk, high-reward bet on U.S. dominance, while VGRO offers a globally diversified, balanced approach. If you’re unsure, pairing both (e.g., 60% VGRO + 40% VFV) could blend growth and stability.
Pro Tip: Use VGRO as a core holding and add VFV to overweight U.S. stocks. Always align choices with your risk tolerance and timeline!
Other Comparison Articles
- XEQT vs VFV
- XEQT vs VEQT
- Best Canadian ETFs in 2026 — full guide
Frequently Asked Questions
1. Can I hold both VFV and VGRO in my portfolio?
Yes, holding both can provide exposure to U.S. equities through VFV and a diversified global portfolio with VGRO. This combination can enhance growth potential while managing risk.
2. Which ETF is better for a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP)?
Both VFV and VGRO are suitable for TFSAs and RRSPs. However, consider the tax implications of U.S. dividends in a TFSA, as they may be subject to withholding tax. In an RRSP, U.S. dividends are generally exempt from withholding tax due to the Canada-U.S. tax treaty.
3. How does currency risk affect VFV and VGRO?
VFV is exposed to currency risk since it invests in U.S. stocks without currency hedging; fluctuations in the USD/CAD exchange rate can impact returns. VGRO holds a mix of Canadian and international assets, with some currency hedging in place, resulting in reduced currency risk.
4. Are there any management fees associated with these ETFs?
Yes, VFV has a Management Expense Ratio (MER) of 0.09%, while VGRO’s MER is 0.24%. These fees are relatively low compared to traditional mutual funds.
5. How often do these ETFs distribute dividends?
Both VFV and VGRO distribute dividends quarterly. The yield and amount can vary based on the performance of the underlying assets.
Last updated: April 28, 2026
