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If you are comparing XEQT vs VGRO, you are really deciding between a 100% equity portfolio and an 80/20 portfolio with bonds built in.
XEQT is the better fit if you want maximum equity exposure in a simple one-ticket ETF and you can handle larger market drops. VGRO is the better fit if you still want mostly stocks, but prefer a built-in bond allocation to smooth out some volatility.
Both are solid all-in-one ETFs for Canadian investors. The decision is not mainly about fees. It is about whether you want the extra growth potential and volatility of all equities, or the steadier profile of an 80/20 portfolio.
Quick verdict: Choose XEQT if you have a long time horizon, are still building wealth, and can stick with a 100% stock portfolio during bad markets. Choose VGRO if you want a one-fund portfolio that still leans growth-oriented but includes a 20% bond cushion. For most young investors with decades to invest, XEQT is the cleaner growth pick. For investors closer to needing the money, VGRO is usually easier to live with.
If you are still new to ETFs, it helps to understand what an ETF is and what MER means before choosing between two asset allocation ETFs.
XEQT vs VGRO: side-by-side comparison
| Feature | XEQT | VGRO |
|---|---|---|
| Full name | iShares Core Equity ETF Portfolio | Vanguard Growth ETF Portfolio |
| Provider | BlackRock iShares | Vanguard Canada |
| Asset mix | 100% equity | About 80% equity / 20% fixed income |
| Inception date | August 7, 2019 | January 25, 2018 |
| Management fee | 0.17% | 0.17% |
| MER | 0.20% | 0.24% |
| Fund assets | About $16.7B CAD | About $9.6B CAD |
| Underlying funds | 5 iShares ETFs | 7 Vanguard ETFs |
| Distribution frequency | Quarterly | Quarterly |
| 5-year annualized return | 13.24% | 10.57% |
| 2025 return | 20.45% | 16.86% |
| Best fit | Long-term investors who want all-equity growth | Investors who want growth with a bond cushion |
Source note: XEQT data comes from the official iShares XEQT product page and April 2026 XEQT factsheet. VGRO data comes from the official Vanguard VGRO product page and April 30, 2026 VGRO factsheet. ETF data changes, so verify current figures before investing.
What XEQT holds
XEQT is an all-equity asset allocation ETF. It holds a portfolio of underlying iShares ETFs that cover Canadian, U.S., international developed, and emerging-market stocks.
As of the April 2026 iShares factsheet, XEQT’s largest underlying allocations were Canadian equities at about 25.8%, U.S. total market exposure split across two U.S. sleeves, international developed equities at about 24.6%, and emerging markets at about 5.4%.
The important point is simple: XEQT has no bond allocation. If global stocks fall sharply, XEQT should feel that move more directly than VGRO.
What VGRO holds
VGRO is Vanguard’s growth-oriented asset allocation ETF. It targets about 80% equities and 20% fixed income.
As of Vanguard’s April 30, 2026 factsheet, VGRO’s underlying funds included U.S. total market, Canadian all-cap, developed international, emerging markets, Canadian aggregate bonds, and CAD-hedged U.S. and global bond exposure.
VGRO is still mostly a stock ETF. The 20% bond allocation does not make it conservative, but it can reduce some of the portfolio swings compared with an all-equity fund like XEQT.
The main difference between XEQT and VGRO
The main difference is the bond allocation. XEQT is 100% equity. VGRO is roughly 80% equity and 20% fixed income.
That one difference drives most of the decision. XEQT has more upside when stocks are strong, but it can also drop harder when stocks are weak. VGRO gives up some equity exposure in exchange for a smoother ride.
The provider difference matters less. Some investors prefer iShares, some prefer Vanguard, but both providers are large, established ETF managers. Your asset mix matters more than the logo on the factsheet.
Fees and MER
XEQT currently lists a 0.20% MER. VGRO currently lists a 0.24% MER. Vanguard reduced VGRO’s management fee from 0.22% to 0.17% effective November 18, 2025, but the listed MER remains slightly higher than XEQT’s.
The fee gap is small. On $100,000 invested, a 0.04 percentage-point MER difference is about $40 per year before any trading costs. That is not nothing, but it should not override the asset allocation decision.
If you want to model fee drag over time, use the ETF fee drag calculator. For broader fee context, see the Canadian ETF MER snapshot.
Performance considerations
XEQT has outperformed VGRO over recent periods where equity markets were strong. That is what you would expect from a 100% equity ETF compared with an 80/20 ETF.
As of the April 2026 factsheets, XEQT showed a 13.24% 5-year annualized return, while VGRO showed 10.57%. In 2025, XEQT returned 20.45% and VGRO returned 16.86%.
Do not read that as a guarantee that XEQT will always be better. It means XEQT took more equity risk during a period when that risk paid off. In a rougher stock market, VGRO’s bond sleeve can help reduce the damage, though bonds can also have difficult periods.
Dividends and distributions
Both XEQT and VGRO pay quarterly distributions. Neither is mainly an income ETF.
XEQT’s distributions come from its underlying stock ETFs. VGRO’s distributions include stock dividends plus bond interest from the fixed-income sleeve. If income is the main goal, a Canadian dividend ETF comparison like VDY vs XEI is closer to that search intent.
TFSA, RRSP, FHSA, and taxable account considerations
Both XEQT and VGRO can be held in a TFSA, RRSP, FHSA, RESP, or non-registered account. There is no simple tax rule that makes one automatically better than the other.
In a TFSA, growth and withdrawals are tax-free. In an RRSP, taxes are deferred until withdrawal. In an FHSA, the account can be powerful for eligible first-home buyers because contributions may be deductible and qualifying withdrawals can be tax-free.
In a non-registered account, both funds can create taxable distributions and capital gains when you sell. Keep records and avoid switching just because one fund had a better recent return. If you are deciding between registered accounts, start with TFSA vs RRSP.
Who should choose XEQT?
- You want a simple 100% equity portfolio.
- You have a long time horizon, ideally 10 years or more.
- You are comfortable seeing your portfolio fall sharply during stock-market declines.
- You prefer iShares or already use iShares ETFs elsewhere.
- You want the slightly lower listed MER.
Who should choose VGRO?
- You want a mostly equity portfolio with bonds included.
- You prefer Vanguard’s asset allocation ETF lineup.
- You want one fund that is less aggressive than XEQT or VEQT.
- You are closer to using the money, or you know a full-equity drawdown would make you sell.
- You value smoother behaviour more than squeezing out every bit of long-term equity exposure.
Should you hold both XEQT and VGRO?
Most investors do not need both. XEQT and VGRO overlap heavily because they both hold broad Canadian, U.S., international, and emerging-market equities.
Holding both mostly creates a custom stock/bond mix. For example, splitting between XEQT and VGRO can land you somewhere between 100% equity and 80% equity. That can work, but it adds an extra ticker and a little more rebalancing.
A simpler approach is usually to choose the one-ticket ETF that already matches your risk level. If you want all equity, use XEQT or compare XEQT vs VEQT. If you want 80/20, use VGRO or compare XEQT vs XGRO and XGRO vs XBAL.
If you are buying ETFs regularly, the brokerage matters too. Questrade can make sense for Canadian DIY investors who want broad account support, ETF investing, and CAD/USD flexibility. You can open a Questrade account here. Bonus terms and platform pricing can change, so compare current details before signing up.
For the brokerage side of the decision, see our Wealthsimple vs Questrade comparison. If you are new to ETF orders, start with how to buy stocks in Canada.
Final verdict
XEQT is the better pick if you want a simple all-equity growth portfolio and can handle the volatility. It has a slightly lower listed MER than VGRO and gives you full stock-market exposure in one Canadian-listed ETF.
VGRO is the better pick if you want an easier ride. Its 80/20 structure is still growth-oriented, but the bond sleeve can make the portfolio less extreme during stock-market selloffs.
For many long-term Canadian investors, the decision is straightforward: choose XEQT for maximum simplicity and growth, choose VGRO if you want bonds included from day one. The wrong move is not choosing the more conservative fund. The wrong move is choosing an allocation you cannot stick with when markets get ugly.
XEQT vs VGRO FAQ
Is XEQT better than VGRO?
XEQT is better if you want a 100% equity portfolio and can handle more volatility. VGRO is better if you want a growth portfolio with bonds included for a smoother ride.
What is the main difference between XEQT and VGRO?
The main difference is asset allocation. XEQT is 100% equity, while VGRO targets about 80% equity and 20% fixed income.
Is XEQT or VGRO better for a TFSA?
Either can work in a TFSA. XEQT may suit investors focused on long-term growth, while VGRO may suit investors who want less volatility inside the same tax-free account.
Should I hold both XEQT and VGRO?
Most investors do not need both. Holding both mainly creates a custom equity/bond mix, which can be fine but is usually less simple than choosing one fund.
Does XEQT or VGRO have lower fees?
XEQT currently has the lower listed MER at 0.20%, while VGRO lists a 0.24% MER. The gap is small, so asset allocation should be the bigger decision.
Do XEQT and VGRO pay distributions?
Yes. Both XEQT and VGRO pay quarterly distributions, but neither fund is primarily designed as an income ETF.
Disclaimer: This is general information, not personalized financial advice. ETF fees, holdings, yields, and distributions can change. Check the current fund pages and consider speaking with a qualified financial professional before investing.
Last updated: May 30, 2026
