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Thoughts on VGRO?

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  • Dec 15th, 2020 6:08 pm
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Newbie
User avatar
Dec 10, 2006
82 posts
25 upvotes
Thornhill

Thoughts on VGRO?

Hi guys,

I am trying to follow the Canadian Couch Potato portfolio. What are your thoughts on VGRO? Or should I look at other ETF options? I am planning to keep the money in there for longterm. Maybe 10-20 years.
34 replies
Jr. Member
Feb 5, 2017
154 posts
145 upvotes
XGRO is good too, lower MER, similar holdings as VGRO but bit more US exposure.
Newbie
Mar 3, 2018
28 posts
5 upvotes
Ottawa
Xgro has a lower MER too, 0.20% vs .25% for VGRO.
Deal Addict
Jul 10, 2014
2827 posts
1124 upvotes
Ottawa, ON
I'm in XGRO but basically same-same as VGRO. Check them out and invest in whichever you like more. Decently safe, especially over long term.
Sr. Member
User avatar
Dec 28, 2010
637 posts
286 upvotes
I sold all VGRO. Three dollars increase since 2018 is not enough 'gro' for me tbh. XGRO same, there are better ones.
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
Deal Addict
Jul 5, 2008
1501 posts
1270 upvotes
VESTEGAARD wrote: I sold all VGRO. Three dollars increase since 2018 is not enough 'gro' for me tbh. XGRO same, there are better ones.
From the VGRO chart it looks like 12.2% total growth since Jan 18 when it started but if you got it mid '18 then yes, about +3$ from then. What did you switch into that has better growth with a similarly balance portfolio?
Member
Jan 4, 2017
366 posts
268 upvotes
These all-in-one ETFs are for people who want to DIY, but don't necessarily want to juggle multiple funds and manually rebalance from time to time. While the fee can certainly be seen as low compared to mutual funds, it's potentially not as low as if you were to buy the exact same underlying ETFs yourself (these all-in-one's just contain a bunch of other ETFs).

If that sounds like a fit for you - then you just need to decide on your risk tolerance to pick which one to go for. There are different ones from conservative (more bonds, less equities) to aggressive (more equities, less bonds).

For example, from Vanguard, all for 0.25%, you have:

VEQT - 100% equities
VGRO - 80% equities, 20% bonds
VBAL - 60% equities, 40% bonds
VCNS - 40% equities, 60% bonds
VCIP - 20% equities, 80% bonds

From iShares, for 0.2%, you have:

XEQT - 100% equities
XGRO - 80% equities, 20% bonds
XBAL - 60% equities, 40% bonds
XCNS - 40% equities, 60% bonds
XINC - 20% equities, 80% bonds

There are also similar offerings from BMO and Horizon. Something else to consider is transaction fees. Many brokerages charge between $4.95 - $9.99 per transaction, which can add up if you're making frequent purchases. If you're using Scotia iTRADE - you can buy/sell the iShares ETFs for free. If you use WealthSimple, you can buy/sell any ETF for free, and if you use Questrade, then you have nearly-free ETF purchases as well (but it costs to sell).

Far more important than which ETF you choose is your consistency. So just be sure to properly understand your goals, risk tolerance and time horizon so that you're less likely to stray from the plan.
Member
Aug 3, 2012
407 posts
198 upvotes
AURORA
^^ Excellent post by zcypher.
VESTEGAARD wrote: I sold all VGRO. Three dollars increase since 2018 is not enough 'gro' for me tbh. XGRO same, there are better ones.
You need to add the distributions to this as well. Return is not just market price appreciation.
Jr. Member
Dec 5, 2017
193 posts
154 upvotes
It's a good option. In a letter for my son's trust (hopefully it's not needed) I specifically state to buy XGRO, VGRO or equivalent. If I was to have just one fund for my retirement savings I would go with XGRO or VGRO. It definitely simplifies things.
Deal Fanatic
User avatar
Sep 21, 2007
7138 posts
3937 upvotes
Winnipeg
you can take a look at the holdings that each etf holds. I switched over from VGRO to XGRO because I liked those companies better.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Addict
User avatar
May 11, 2014
4589 posts
5408 upvotes
Iqaluit, NU
I recommend people separate their bond from their equity portions.

So rather than VGRO...

80% VEQT and 20% VAB

Merits:
-Can adjust and change portfolio risk easily without having to sell and rebuy; just buy more of specific proportion
-Can cash out whichever proportion happens to be doing better (eg. if stocks are down, bonds are up, and you need cash, can just sell bonds etc.)
-lower overall MER
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Deal Addict
User avatar
May 11, 2014
4589 posts
5408 upvotes
Iqaluit, NU
freilona wrote:
Are you sure? Don’t see them in the list of commission free ETFs: https://www.scotiabank.com/itrade/en/0% ... %2C00.html

Otherwise great post! 👍🏻
He did say iShares ;)

Scotia iTrade is dumb and keeps XGRO listed as CBN. They just recently updated this page too.
CBN was the old Claymore etf. This got morphed Into XGRO.

CBD = XBAL
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Deal Fanatic
Jul 1, 2007
8477 posts
1557 upvotes
VESTEGAARD wrote: I sold all VGRO. Three dollars increase since 2018 is not enough 'gro' for me tbh. XGRO same, there are better ones.
This is how retail investors fail over and over and over and over...
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Addict
Jul 23, 2007
4352 posts
2749 upvotes
Since early this year I have one balanced index ETF in the TFSA's and RRSP?RRIF.

Makes it easier for my wife if I go first.

The ETF held up very well through the market drop earlier this year.

Rebalancing is done automatically.

Low MER.

Super simple.

I'm a retiree and I was just reading an article by Andrew Hallam that "Fidelity Investments reported that almost one-third of the firm’s investors over the age of 65 sold all of their stock market investments between February 20th and May 15th , 2020. In other words, they panicked during COVID-19s stock market plunge."
Deal Addict
Jul 5, 2008
1501 posts
1270 upvotes
Stryker wrote: Since early this year I have one balanced index ETF in the TFSA's and RRSP?RRIF.

Makes it easier for my wife if I go first.

The ETF held up very well through the market drop earlier this year.

Rebalancing is done automatically.

Low MER.

Super simple.

I'm a retiree and I was just reading an article by Andrew Hallam that "Fidelity Investments reported that almost one-third of the firm’s investors over the age of 65 sold all of their stock market investments between February 20th and May 15th , 2020. In other words, they panicked during COVID-19s stock market plunge."
Which ETF are you using in all accounts? I have some XGRO & VFV to park money in. I'm also retired (64) but I was 70% cash going into the drop so I was buying on the way down and back up.

My wife has power of attorney on my accts and I have trading authority & POA on hers. Her instructions are to call the TDDI when I die and tell them to liquidate everything (I have options in the accts) LOL
Sr. Member
User avatar
Dec 28, 2010
637 posts
286 upvotes
Thalo wrote: This is how retail investors fail over and over and over and over...
Or... maybe I'm not a retail investor and make more money than you?
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
Member
Sep 25, 2009
382 posts
263 upvotes
VESTEGAARD wrote: I sold all VGRO. Three dollars increase since 2018 is not enough 'gro' for me tbh. XGRO same, there are better ones.
100% agree. The only responses have been comparing its IPO price or adding their dividends to the total returns. If $3 is all it could do in 3 years, why not just buy a bank stock and get triple the dividends. I must be missing something.

If I was to buy a ETF, I would get something like ZQQ, it has gone up $40 in 2 years.
Deal Addict
Jul 5, 2008
1501 posts
1270 upvotes
light2 wrote: 100% agree. The only responses have been comparing its IPO price or adding their dividends to the total returns. If $3 is all it could do in 3 years, why not just buy a bank stock and get triple the dividends. I must be missing something.

If I was to buy a ETF, I would get something like ZQQ, it has gone up $40 in 2 years.
ZQQ is a C$ version of the Nasdaq index so comparing it to VGRO is pointless when one is a tech specific index fund and the other is a balanced global equity/bond fund

It's largest holding is AAPL so why not compare it to just holding AAPL and then you'd be up twice what ZQQ is. LOL

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