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VEQT vs. VGRO: Which All-In-One ETF Has Performed Better?

VGRO

The Vanguard Equity Index Group has continually created assets for Canadian investors to make hands-free passive income. The VEQT (Vanguard All Equity ETF Portfolio) and VGRO (Vanguard Growth ETF Portfolio) are all-in-one ETFs (exchange-traded funds)offered by Vanguard.

As you know, through ETFs, you own a small piece of several companies at once, thus eliminating the high risk of buying individual stocks. 

You won’t become an overnight millionaire when you invest in ETFs, but you will see significant growth of your capital over the long term.

Now, let us get down to the goal of this article; analyzing the performance of VEQT vs. VGRO. Which ETF has performed better?

 Daily returns as of 19th May 2021

 VEQTVGRO
Daily total returns6.43%4.20%
Daily 1-year total returns31.18%23.99%
3-year total daily returnsNA8.81%
Yield1.38%1.82%
Annual report expense ratio (net)0.25%0.25%
Holdings turnover17.17%7.66%

VEQT vs. VGRO growth of 10,000 (CAD)

 VEQTVGRO
April 2020$10,000.00$10,000.00
May 2020$10,383.30$10,317.49
June 2020$10,568.00$10,487.95
July 2020$10,957.90$10,825.52
August 2020$11,286.99$11,063.94
September 2020$11,144.39$10,958.94
October 2020$10,880.68$10,739.30
November 2020$11,960.46$11,609.92
December 2020$12,254.05$11,848.03
January 2021$12,289.17$11,850.77
February 2021$12,261.36$12,069.10
March 2021$12,908.22$12,249.58
April 2021$13,164.96$12,447.56

VEQT vs. VGRO facts

VEQT

  • Toronto Stock Exchange
  • Ticker symbol-VEQT
  • MER (Management Expense Ratio)-0.25%%
  • Management fee 0.22%
  • Distribution frequency- annually
  • Income distribution per unit-$0.461615
  • Eligible for registered accounts-yes
  • Launch date-29th January 2019
  • Total value by November 2020-$508M
  • Currency-CAD
  • Market price $20.75 – $31.25
  • Net assets-$978.26M
  •  Net asset value (NAV) $20.77 – $31.27
  •  Average bid-ask spread 0.09%
  • CUSIP: 92201C107
  • SEDOL: BJ11554
  • ISIN: CA92201C1077

VGRO

  • Toronto Stock Exchange
  • Ticker symbol-VGRO
  • MER (Management Expense Ratio)-0.25%
  • Management fee-0.22%
  • Distribution frequency- quarterly
  • Income distribution per unit-$0.124983
  • 12-month trailing yield-1.82%
  • Distribution yield- 1.65%
  • Eligible for registered accounts-yes
  • Launch date-25th January 2018
  • Total value by November 2020-$1,678M
  • Currency-CAD
  • Market price $20.74 – $28.78
  • Net asset value (NAV) $20.76 – $28.80
  • Average bid-ask spread 0.06 %
  • CUSIP 46429U109
  • SEDOL: BF7ML33
  • ISIN: CA92207X1050

VEQT vs. VGRO top holdings

VEQT top 4 holdings as of April 2021

  •  Vanguard US Total Market Index ETF 41.74%
  • Vanguard FTSE Canada All Cap Index ETF 30.15%
  • Vanguard FTSE Developed All Cap ex North America Index ETF 20.26%
  • Vanguard FTSE Emerging Markets All Cap Index ETF 7.85%

VEQT weighting

Basic Materials6.73%
Consumer Cyclical9.87%
Financial Services20.36%
Real Estate3.17%
Consumer Defensive6.13%
Healthcare8.77%
Utilities3.19%
Communication Services7.85%
Energy6.07%
Industrials11.63%
Technology1.24%
  • Stocks-99.9%
  • Bonds-0.00%
  • Price/Earnings-21.91x
  • Price/Book-2.47x
  • Price/Sales-1.97x

VGRO top 7 holding as of April 2021

  • Vanguard US Total Market Index ETF 33.54%
  • Vanguard FTSE Canada All Cap Index ETF 24.37%
  • Vanguard FTSE Developed All Cap ex North America Index ETF 16.47%
  • Vanguard Canadian Aggregate Bond Index ETF 11.49%
  • Vanguard FTSE Emerging Markets All Cap Index ETF 6.27%
  • Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged 4.42%
  • Vanguard US Aggregate Bond Index ETF CAD-hedged 3.45%

Summary

  • Stocks-80.60%
  • Bonds-18.84%
  • Price/Earnings-21.9
  • Price/Book-2.46
  • Price/Sales-1.97

VEQT vs. VGRO pros and cons

VGRO 

Pros

  • Suitable for all investors
  • Vanguard is renowned for its customer service.
  • Tax efficiency for TFSA and RRSP accounts
  • Its low-cost meaning that you will pay a low management fee and MER.
  • It is self-rebalancing
  • You have a chance to invest easily and cheaply across a wide variety of top Canadian assets. Investors call it the Canadian Couch Potato Strategy meaning; you have an investment portfolio containing stocks and bonds you manage from your couch.

Cons

  • DIY traders and experts may not enjoy paying the management fee
  • VGRO leans too much towards Canadian markets.
  • The portfolio has a couple of high-risk stocks. You can see a few blue-chip Canadian stocks among the top 10 holdings.
  • It has a higher risk than VBAL ETF and VCN (Vanguard FTSE Canada All Cap Index ETF).

VEQT

Pros

  • It is low-cost and suitable for all traders
  • The portfolio is self-allocating/self-rebalancing.
  • You enjoy geographical and asset diversification
  • Tax-efficient for registered accounts
  • Easily accessible
  • It’s a Vanguard product

Cons

  • There are cheaper options
  • Stocks are highly volatile

Verdict

An analysis of VEQT vs. VGRO shows that both are worth your money. The two ETFs have been with us for less than five years, but they have produced excellent results. Moreover, they’re ideal for investors who don’t have time to monitor stock markets across the world.

Finally, kindly know that past success does not guarantee future results. Do not put all your capital in one basket.


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