XGRO Review 4.7/5
Are you looking for a low-cost, high-return and tax-efficient way to invest your hard-earned money? Exchange-traded funds (ETFs) such as XGRO might be your perfect option.
Due to their diversification, tax efficiency and low cost, ETFs continued to gain dominance in the stock market over other investment vehicles.
With more than 700 ETFs assets from more than 30 ETF providers in Canada, identifying and investing in the best in an -all-in-all ETF is key to making the best of your money.
iShares Core Growth ETF (XGRO) Is one of the best Canadian ETFs in the market that helps you diversify your portfolio at low cost, low risk and high returns. However, there is another part of the story.
To help you make an informed decision, I write this comprehensive, unbiased XGRO review exploring the good and ugly sides of XGRO based on my personal experience.
From XGRO investment objective, its pros and cons, asset allocation, top holdings and more, this review covered all you need to know about the current profile of XGRO.
XGRO: A Brief Overview
Previously known as the iShares Balanced Growth CorePortlofio Index ETF, iShares Core Growth ETF Portfolio (XGRO) is part of the Toronto Stock Exchange that was established on June 21, 2007.
On December 11, 2018, BlackRock renamed iShares Balanced Growth CorePortlofio Index ETF to iShares Core Growth ETF Portfolio (XGRO).
An all-in-one ETF is a portfolio that combines a variety of stocks and bonds in one package.
With an all-in-one ETF such as iShares Core Growth ETF Portfolio, you don’t have to be concerned about tracking or managing anything.
So by not devoting your time and efforts to tracking the performance of individual stocks, you can gain from diversification and wealth growth.
What is XGRO?
XGRO is an all-in-one ETF portfolio that invests in equity and fixed-income securities with the aim of providing investors with lasting capital growth.
iShares Core Growth ETF Portfolio comprises an 8-fund basket of approximately 80% equity and 20% bond.
Traded on the Toronto Stock Exchange, XGRO has a low to medium risk level, making it suitable for both new and seasoned investors in Canada.
XGRO Investment Objective
The objective of XGRO is to invest in a portfolio of ETFs held by BlackRock with exposure to internationally diversified equity and fixed-income securities so as to provide investors with lasting capital growth.
5 Interesting Facts About XGRO
Before investing in any vehicle, it’s important to first determine the minimum cost, fees, returns, management expense ratio (MER) and more.
In the case of the iShares Core Growth ETF Portfolio, it has attractive figures for both new and seasoned investors.
Here are the five key facts about the iShares Core Growth ETF Portfolio (XGRO) as of May 14, 2021 :
- Minimum Investment: CAD 24.18
- Management fee: 0.18%
- Management expense ratio (MER): 0.20%
- Asset allocation: 80% equity and 20% fixed income
- Average Annual Return: 5.80%
As you continue reading, you will know the value of these facts.
How Does XGRO ETF Work?
This ETF works in a simple way. upon purchasing a package of various fixed-income and stocks, it helps you establish a portfolio with a lasting capital growth portfolio.
To ensure that, XGRO invests in ETFs that are exposed to diversified stocks and fixed-income securities through indexing and risk reduction.
Due to its historical success, BlackRock categorized XGRO among investment vehicles with a low-medium level of risk.
BlackRock’s XGRO ETF is managed by a team of professionals, which distinguishes it from other asset groups out there.
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.
XGRO: Pros and Cons
Here are the good and ugly sides of XGRO that should influence your decision of choosing this investment vehicle:
- Global diversification without home bias
- low management fee (0.18%).
- Low MER (0.20%).
- Easy to use and purchase.
- Low returns compared to other ETFs.
- More inclined to the US markets.
XGRO Asset Allocation
- Equity: 27
- Fixed Income: 46
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 Core S&P Total US Stock (ITOT)||36.72|
|iShares Core S&P/TSX Capped Co (XIC)||20.72|
|iShares Core MSCI EAFE IMI Ind (XEF)||19.95%|
|iShares Core Canadian Universe (XBB)||11.74%|
|iShares Core MSCI Emerging Mar (IEMG)||3.87%|
|iShares Core Canadian Short Te (XSH)||2.93%|
|iShares Broad USD Investment G (USIG)||1.92%|
|iShares US Treasury Bond ETF (GOVT)||1.87%|
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
|Royal Bank of Canada||1.27%|
|The Toronto-Dominion Bank||1.16%|
|Canadian National Railway Co||0.72%|
|Bank of Nova Scotia||0.71%|
XGRO ETF Returns/Performance
The annual average return of XGRO is 7.07% in the last decade as of April 30, 2021.
Here is the XGRO dividend yield as of May 13, 2021:
- Distribution yield:57%
- 12-month trailing yield: 98%
- Dividend frequency: Quarterly
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.
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.
XGRO Review: My 5-Star Rating
Here are the 5-star ratings that determine the 4.7-star rating of XGRLO on this review:
|Average Annual Return||*****|
XGRO vs VGRO: Similarities and Differences
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!
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.