XGRO Review 2022: iShares All-in-one Growth ETF Portfolio

XGRO Review

: 4.7/5

If you are tired of rebalancing portfolios, or if you are looking for a low-cost, high-return, and tax-efficient way to invest your hard-earned money, the all-in-one iShares Core Growth ETF (XGRO) is perfect for you. XGRO will give you the growth and diversification you desire.

All-in-one ETFs including XGRO, VBAL, and XEQT continue to gain dominance in the stock market over other investment products due to their diversification, tax efficiency, and low cost.

With more than 700 ETFs assets from more than 30 ETF providers in Canada, identifying and investing in the best ETFs is key to making the best of your money.

The iShares Core Growth ETF (XGRO) is simply one of the best Canadian ETFs in the market. Instead of picking stocks individually and rebalancing your portfolio, XGRO helps you diversify your portfolio easily and at a low cost such that you only buy one fund (which is like a basket of investments) instead of many.

To help you make an informed decision, I write this comprehensive, unbiased XGRO review exploring the good and not-so-good sides of XGRO based on my personal experience.

In this XGRO review, I will examine its asset allocation, top holdings, pros, cons, and more. This XGRO review will cover all you need to know about the iShares Core Growth ETF Portfolio (XGRO) in 2022.

XGRO Review At A Glance

In this XGRO review section, I will give you a snapshot of what you must know about the XGRO ETF-  It’s features, pros, and cons.

XGRO Features:

1. Low Management expense ratio (MER) of 0.20%
2. Low management fee (0.18%).
3. Asset allocation: 80% equity and 20% fixed income
4. Average Annual Return: 5.80%
5. Classified as an ETF with a low to medium level of risk.
6. Easy to use and purchase.

Why I love XGRO

:

1. Totally hands-off. Set it up once and leave it to grow.
2. Low management fees mean you will have more money to grow your portfolio.
3. Very easy to buy and set up.
4. Diversified portfolio with access to various sectors.
5. Access to international and global markets without home bias.

What to watch out for on XGRO

:

1. Low historical returns as compared to other ETFs with the same asset allocation.
2. More inclined to the US markets, and a considerable chunk of your investment will go to the US Market.

What Is The iShares XGRO ETF And How Does It Work?

XGRO was first traded on the Toronto Stock Exchange in 2007 and it traded under the name iShares Balanced Growth CorePortlofio Index ETF.

In 2018, BlackRock renamed XGRO to iShares Core Growth ETF Portfolio, and its objective was redefined to focus on creating a lasting capital growth portfolio.

To ensure that, XGRO invests in ETFs that will diversify your investments by combining a variety of stocks and bonds in one package without you being concerned about tracking or managing anything.

iShares Core Growth ETF Portfolio (XGRO) comprises an 8-fund basket of approximately 80% equity and 20% bond.

Due to its historical success, BlackRock categorized XGRO among investment vehicles with a low-medium level of risk, making it suitable for both new and seasoned investors in Canada.

XGRO has attractive figures for fees, and management expense ratio (MER), and here are the five key numbers you must know about the iShares Core Growth ETF Portfolio (XGRO) as of May 14, 2021 :

1. Minimum Investment: CAD 24.18
2. Management fee: 0.18%
3. Management expense ratio (MER): 0.20%
4. Asset allocation: 80% equity and 20% fixed income
5. Average Annual Return: 5.80%

BlackRock’s XGRO ETF is managed by a team of professionals, which distinguishes it from other asset groups out there.

XGRO Asset Allocation

• Equity: 27
• Fixed Income: 46
• Cash/Derivatives:27

Due to its high weighting in equities, XGRO is considered a growth portfolio.

The best part of this portfolio is that it requires no rebalancing to maintain an asset allocation ratio with low risk and growth optimization.

Here are the top 10 XGRO stock holdings as of May 14, 2021:

iShares XGRO Sector Weighting

Here is iShares XGRO sector weighting, as of May 11, 2021:

XGRO Top Holdings

Here are the top 10 XGRO holdings as of May 11, 2021

XGRO ETF Returns and Performance

The annual average return of XGRO is 7.07% in the last decade as of April 30, 2021.

iShares XGRO’s Dividend Yield

Here is the XGRO dividend yield as of May 13, 2021:

• Distribution yield:57%
• 12-month trailing yield: 98%
• Dividend frequency: Quarterly

XGRO Fees

iShares XGRO has two fees as follows:

• Management Fee:18%
• Management Expense Ratio (MER) : 0.20%

Note

: Trading commissions may accumulate to remove your fee savings if you are not trading large amounts regularly.

However, you can use a zero-commission brokerage (such as Questrade) to reduce your trading cost.

XGRO vs VGRO

Vanguard Canada offers the Vanguard VGRO Growth ETF Portfolio. VGRO shares similar investment objectives with the iShares Core Growth ETF Portfolio (XGRO).

Both XGRO and VGRO aim to provide lasting capital gains to investors by diversifying a wide range of underlying ETFs.

Just like XGRO, VGRO also provides an 80/20 allocation of equities and fixed-income securities.

However, these two great ETF portfolios have some differences. For example, XGRO has a management fee of 0.18 while VGRO has 0.22%. Also, XGRO has a lower MER of 0.20% compared to VGRO’s higher MER of 0.25%.

Also, while XGRO is inclined to the US markets, VGRO has a preference for Canadian markets.

In general, there is no major distinction between the two. You can’t make the wrong choice with either XGRO or VGRO.

However, some investors can find XGRO more appealing than VGRO due to its lower MER and management fees. The choice is yours!

How to Buy XGRO ETF

You can invest in XGRO in a variety of ways in Canada. However, I often recommend using a discount broker such as Questrade to buy an XGRO ETF.

Questrade enables you to buy ETFs for free. However, there are trading fees.

(from $4.95 to $9.95) when you sell.

Creating a Questrade account is free. However, you need to deposit a minimum of $1000 to start trading with a%50 bonus.

Conclusion

With a low to medium level of risk, XGRO is a popular option for new and seasoned investors in Canada.

Is it the right option for you too? Well, by now you should be able to answer this question sincerely.

The investment objective of XGRO is clear enough. Unless you’re looking for a short-term investment vehicle, your long-term investment with XGRO is the best.

However, if you’re not interested in the low management fee and MER of XGRO, VGRO is your great alternative since it has a home bias for Canada, and it shares some similarities with XGRO.

Above all, you are now more informed about what XGRO entails and take the next step of choosing an ETF portfolio that suits your financial objective and risk tolerance.

Let me know the ETF portfolio you’re buying in the comment section.

XGRO Review FAQs

Is XGRO a Good Investment?

Capital YES. This is based on the above five interesting facts of XGRO, which include an impressive low management fee (0.18%), low MER (0.20%) and high average annual return (5.80%), among others.

Also, as an investment vehicle with a low-medium risk level, XGRO is a good investment for both new and seasoned investors.

How Risky is XGRO?

With a low-medium risk profile, XGRO is less risky compared to other investment vehicles out there.

A low-medium level implies that the chances of losing your hard-earned money with XGRO are low.