If you're not actually answering the question, then make sure your comment looks like a question. Generally, you need to be able (based on factors like your timeline, your wealth, and specific needs), and willing (related to your experience and comfort with the markets, and other psychological factors) to tolerate the risk level involved in any investment you make. If you are self-directing your portfolio you may want to complete a questionnaire on your own to determine your risk level. Whether to buy VGRO, VBAL, or VEQT depends how much you can stomach when the equities fall. Financial advisers will often require a client to fill out a risk questionnaire to determine their risk level, but if you are self-directing your investments then you will have to determine your own risk level. [–]ead20 0 points1 point2 points 2 months ago (5 children). https://www.vanguardcanada.ca/individual/questionnaire.htm, https://www.advisor.ca/my-practice/conversations/evaluating-risk-tolerance-a-sample-questionnaire/, https://www.sunlife.ca/canada/v/index.jsp?vgnextoid=91710f5b442a9310VgnVCM1000009c80d09fRCRD&vgnextfmt=default&vgnLocale=en_CA. Between VEQT and XEQT, the top 10 holdings are very similar. Refrain from "judging" the financial situation of others - whether their situation is dire or well-off. However, if you expect maximized returns then more risk is likely the goal. Compared to the 2% or higher MER cost of comparable equity mutual funds, you are saving a lot in fees.. How does it compare to robo-advisors? And these other ETFs already had a pre-authorized plan available and the plan was kept after the conversion. But, they are not for everyone. vgro vs veqt I’m looking at choosing an ETF to put money in to over the next 10-20 years (I’m in my early 30s). Rendered by PID 7161 on r2-app-0937bff9e19830283 at 2020-12-18 20:52:43.590669+00:00 running e1b8cae country code: VN. In 2019 the closing price was always within 0.25% of the NAV. Someone with less wealth has a smaller "buffer" of wealth, or might be more concerned about losses. There are no VGRO or VEQT equivalents in the plan, just higher cost target retirement funds and a single Blackrock low cost 60/40 index solution, along with unappealing single asset class funds. 1. I knew they were modifications of the old CBN and CBD ETFs. Need advice about Wealthsimple vs. all-in-one ETF. Join our "Finance" Discord - https://discord.gg/FW58RSC, Auto If VGRO’s publicity causes its price to exceed the value of its underlying assets, then an AP will give assets to Vanguard in exchange for ETF units. Be inquisitive, and clear if you are unsure. Do not just post links to other sites as an answer. Please contact the moderators of this subreddit if you have any questions or concerns. https://www.investopedia.com/articles/investing/110515/who-are-owners-vanguard-group.asp#:~:text=Vanguard%20has%20a%20fairly%20unique,the%20true%20owners%20of%20Vanguard. Therefore, it is crucial to ensure your investments are risk appropriate, that is: their level of risk matches your financial objectives. You can feel free to be "harsh", but never insulting. Income Level and Stability - Someone with less wealth or income stability might find their ability/willingness to take on risk to be lower. Jobs where you can work like a dog for 6 months and then take 6 months off (or things like that)? (self.PersonalFinanceCanada), submitted 2 months ago by TrackInternational51. There is one key construction difference between my model ETF portfolios and the Vanguard asset allocation ETFs.Vanguard’s offerings include an allocation to global bonds (which are hedged back to the Canadian dollar), while my models invest only in Canadian bonds. Expectation for a return - If you have a specific goal that only requires a $X, and a conservative portfolio would allow you to reach that goal then it's often appropriate to limit your risk since the upside potential would not likely affect your goal, but the downside potential is failure of your goal. The risk level is not always easy to determine. Step by step list of what to do with money. Huh. use the following search parameters to narrow your results: subreddit:subreddit find submissions in "subreddit" author:username find submissions by "username" site:example.com find … A tiny correction. Housing Misc Taxes thanks. Do not post "I'm not sure if this is true..." or "Someone will correct me if I'm wrong." If you do believe a source fully answers a question then consider including a quote from the source. So since it's constantly tied to the NAV the price rarely differs much from the value of the holdings based on popularity. Wondering peoples thoughts and preferences. Can someone explain why VGRO is much more popular than XGRO? The panel was unanimous in affirming last year’s choice of the pioneering Vanguard asset allocation ETFs (VGRO, VBAL, VCNS, VEQT and VCIP). Meanwhile, VEQT has a higher exposure to Canadian non-tech stocks at 7.86% compared to XEQT’s 5.15%. This includes solicitation of referrals, posting your own blog, video channel or personal website, and recommendations for users to do business with you. Insurance, 1) Posts must be about personal finance in Canada. Depends on age too someone in their 20s with a longer time horizon can be more aggressive then someone in their 50s , who will not want their capital degraded before retirement, What's your risk tolerance? Be realistic with yourself, and take a risk questionniare. (And due to the increased volatility at open and close, some people recommend that you don't purchase ETFs during the first and last 30 minutes of the day. I am not risk-averse though. VGRO has more Canadian bias compared to XGRO which some people say is slightly better due to lower fees. [–]eggbites 2 points3 points4 points 2 months ago (0 children). No, ordinary investors will not profit from the mere popularity of an ETF. So, you'll likely end up on the wrong side of all of your trades. I moved all of my RRSP and TFSAs from VGRO to VEQT as soon as it was available. Using this logic does VGRO not seem like a better long-term play than VEQT and on top of that you get some divident returns from it too? XEQT has a slightly higher exposure to tech stocks in the top 10 (8.88%) compared to VEQT’s 8.19%. I'm 27, make about 47,000/yr, paying pension, and have saved up 75K since I've been working.I've reached my "hard cash limit" (which is an arbitrary amount that can be put towards schooling, or a down payment) REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 7161 on r2-app-0937bff9e19830283 at 2020-12-18 20:52:43.590669+00:00 running e1b8cae country code: VN. VGRO has a management fee of 0.22% and the MER is 0.25%. Being a DIY ETF investor is not particularly hard, but up until recently, it was not particularly easy, either. You can only set up a pre-authorized plan for XGRO and XBAL. But since then the market has become less volatile. Simplify Your Investing with All-In-One ETFs like VBAL, VGRO and VEQT It’s never been easier to invest your money at a low cost. The topic of "personal finance" includes budgeting, goal planning, taxation, saving, investing, banking, credit cards, insurance products, life event planning, major purchase advice, unique deals and tips for frugality, employment and other income sources, global or national economic news and discussions, and a variety of similar topics. Credit Hi, I'm a bot and someone has asked me to respond with information about risk tolerance. A few helpful links, plus answers to types of TFSA accounts. This is the most difficult time for the authorized participant to keep the price close to the NAV. Vanguard asset allocation ETFs are designed to simplify investing while managing risk through balance and global diversification.. Each of our five asset allocation ETFs is an all-in-one portfolio that invests in a different blend of several underlying core Vanguard ETFs. Be patient with others. Exceeded my TFSA contribution limit this year...Advice? I'll consider moving back to VGRO once I hit 50 years old, but right now (40), I'm willing to accept the volatility. Hello friends! This is because Vanguard is constantly creating and destroying units of the ETF to ensure that its price remains in line with the value of the underlying assets. Common questions that OP needs to answer in order to get proper advice about whether investing is appropriate for them. Vanguard says the Canadian bias lowers volatility. If you have heard or read something which might be related to the question, and you want to check it, then make sure you ask it as a question. [–]furiouszap 3 points4 points5 points 2 months ago (3 children). Could there be (have there been) times where its value deviates a lot from NAV? It came almost a year earlier than XGRO. On the other hand, some people might not like that the X series have a somewhat higher weighting to US stocks given valuations. To help people understand what a "marginal rate" would be. Thoughts on emergency fund - cash savings vs LoC vs ??? In recent weeks, I've been writing about how it's getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs. Whether you end up getting a higher return remains to be seen, but it sounds to me like your tolerance is suited to 100% equity and you want to chase the highest possible returns, so do it. VGRO vs. ZSP. They might be too risky and too volatile for you. Performance charts for Vanguard Growth ETF Portfolio (VGRO - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. And, as I’ll show you in my more detailed take, even if you switch to and perfectly execut… If VGRO and VEQT are both traded like stocks even though they are ETFs, does how people value them matter more than their actual value? While VGRO is from the Vanguard Fund House, ZSP is from BMO. Math aside, I would maintain that most DIY investors would be wise to stick like glue to their one-fund solutions, even as their RRSP values continue to grow. This covers a very wide variety of topics, including banking, employment, budgeting, minimizing recurring or popular expenses, advice for large purchases, and more. Banking I am a bot, and this action was performed automatically. Investing Instead other ETFs were converted to XGRO and XBAL. https://www.investopedia.com/articles/investing/110515/who-are-owners-vanguard-group.asp#:~:text=Vanguard%20has%20a%20fairly%20unique,the%20true%20owners%20of%20Vanguard. I think VBAL or XBAL is suitable to just about everyone with a medium to long time horizon. Clearly VEQT has no bond component and therefor making it more aggressive then the VGRO growth portfolio. level 2. Correct me if anything I said is wrong. A one-fund solution ETF such as the Vanguard All-Equity ETF portfolio (VEQT) eliminates the hassle of rebalancing when you make new contributions or when portfolio assets perform at different levels. Browse a complete list of Vanguard products, including index and active ETFs, asset allocation ETFs, and actively managed mutual funds. Those people are professional traders with a privileged relationship to Vangaurd, not amateur speculators. Source: CRSP and FTSE Index Fact Sheets as of December 31, 2017 . Robo-advisors such as Wealthsimple have a 0.40% to 0.50% management fee. Global Bonds. No question is off limits, so hit me up in the comments section or send me an email about all the money things you’re dying to know. Press question mark to learn the rest of the keyboard shortcuts. Also referred to as 'single-ticket' or 'one-ticket' solution funds, these asset allocation ETFs offer investors simplicity and hassle-free portfolio management at a low cost. Ticker VRIF VCIP VCNS VBAL VGRO VEQT Management fee1 0.29% 0.22% 0.22% 0.22% 0.22% 0.22% Management Expense Ratio (MER)2 – 0.25% 0.25% 0.25% 0.25% 0.25% Investment objective Seeks to provide a combination of consistent income with the possibility of some capital appreciation by investing in equity and fixed income securities. Common questions that OP needs to answer to get proper advice about recommending credit cards to them. Use a mix of context, explanation, and sources in your answer. They track solid indexes, are globally diversified, have low fees, and are passively managed. I figure I'm young, so I can play it slightly more risky. Budget Top 7 Best ETFs In Canada . Unapproved AMAs may be removed without notice at the moderator's discretion. It seems VEQT value only goes up because people think it should be worth more than VGRO due to greater risk. Canada's deficit hit $216.6B between April & October from COVID relief. Important information. It seems VEQT value only goes up because people think it should be worth more than VGRO due to greater risk. Since both VEQT & VGRO are new funds, we lack some historical data. VEQT Number of stocks 12,521 Median market cap $53.6B Price/earnings ratio 20.2x Price/book ratio 2.0x Return on equity 14.1% Earnings growth rate 12.5% Equity yield (dividend) 2.5% Sector weighting VEQT Technology 18.0 % Financials 17.8 % Consumer Discretionary 13.2 % Industrials 12.6 % Health Care 9.0 % Basic Materials 7.1 % If you bought the ETF at a price exceeding the asset value, then you end up with a loss. VGRO is a major meme and has publicity pushing it's popularity more than VEQT does. It will then sell the units to ordinary investors like you, making a risk-free profit for itself. [–]Kassul42 0 points1 point2 points 2 months ago (0 children). It does this by giving certain “authorized participants” the right to exchange ETF units for the underlying assets and vice versa. Even if you could handle a riskier portfolio, you still aren't doing wrong by holding 40 % bonds and keeping fees down. Experience and Psychological Comfort - If you have limited experience in the markets, or limited comfort with the "idea" of incurring losses, it is likely appropriate to limit your risk level. Add in the ETF MERs, and you pay a total of 0.60% to 0.70% in fees per year. Oh well, I’m not super likely to use it either way. An understanding of risk, and risk questionnaire links. and join one of thousands of communities. I think you’ll agree, it’s hard to put a price on that convenience. A good answer will be supported by relevant and reliable sources. Step by step guide of what to prioritize / what to do with money. Someone with job or income instability might find that a bad market comes with income loss, which means losses during that time can affect their quality of life. 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