What’s an all-in-one ETF
XGRO (iShares Core Growth ETF Portfolio) is all-in-one ETF available on the TSX. All-in-one ETFs are a portfolio professionally managed available for investors in a form of an ETF. It has three main advantages:
- easy access to a portfolio so it’s great for DIY investors who would like a handoff approach to investing;
- portfolio is rebalanced automatically to maintain the desired allocation;
- Good substitute to Robo-advisors such wealthsimple invest (auto-pilot), Questrade porfolios…etc. All-in-one ETF cost less than managed Robo-advisors in terms of fees.
XGRO Investment objective
The Fund seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by BlackRock Canada or an affiliate that provide exposure to equity and/or fixed income securities.
In essence, when acquiring XGRO, you are acquiring of portfolio of ETFs. 80% of the portfolio is invested in equity ETFs while the remaining 20% is invested in fixed income ETFs. It’s a growth portfolio ideal for investors with long term objective and medium risk tolerance.
XGRO vs VGRO and ZGRO
|Ticker||YTD||1 yr||3 yrs||MER|
XGRO Fees and Morningstar rating
XGRO has a 0.20% management expense ratio. This is the total charge for the fund. Even if XGRO a group of ETFs at once, client will not pay MER for each ETF, the maximum they are charged is the MER of the all-in-one ETF.
|Management Expense Ratio (MER)||0.20%|
Morningstar 2021 rating (as of July 22nd 2021)
HGRO has a great coverage, it includes US, Canada and World equities. 36.47% is invested in US stocks. As you can see below, XGRO invests in a basket of i-shares ETFs.
as of May 21, 2021Custom Columns
|ITOT – ISHARES CORE S&P TOTAL U.S. STOCK||36.47|
|XIC – ISHARES S&P/TSX CAPPED COMPOSITE||20.90|
|XEF – ISHARES MSCI EAFE IMI INDEX||20.01|
|XBB – ISHS CORE CAD UNIV BND IDX ETF (CA||11.73|
|IEMG – ISHARES CORE MSCI EMERGING MARKETS||3.87|
|XSH – iShares Core CAD ST Cor Bd Index||2.93|
|USIG – ISHARES BROAD USD INVESTMENT G||1.91|
|GOVT – ISHARES US TREASURY BOND ETF||1.86|
List of stocks held by XGRO through the basket ETFs it invests in:
|AMAZON COM INC|
|ISHARES CORE MSCI EAFE ETF|
|ASML HOLDING NV|
|SHOPIFY SUBORDINATE VOTING INC CLA|
|ROYAL BANK OF CANADA|
XEQT iShares Core Equity ETF Portfolio vs XGRO iShares Core Growth ETF Portfolio
XEQT is more aggressive than XGRO. The portfolio of ETFs under XEQT are 100% in stocks whereas under XGRO they are 80% in stocks.
So, it depends on your risk tolerance. If you have a long term objective and have a higher risk tolerance then XEQT is a great option.
see below the holdings for XEQT:
as of May 24, 2021
|ITOT – ISHARES CORE S&P TOTAL U.S. STOCK||46.87|
|XIC – ISHARES S&P/TSX CAPPED COMPOSITE||24.77|
|XEF – ISHARES MSCI EAFE IMI INDEX||23.29|
|IEMG – ISHARES CORE MSCI EMERGING MARKETS||4.83|
How can I buy XGRO
Clients have simply to use their banks brokerage websites or independent brokers platform (such as Questrade or Wealthsimple) to acquire the ETF. No need to contact a financial advisor, it’s a product for DIY investors.
XGRO can be held in registered accounts such as RRSP, TFSA or RESP.