XGRO vs VGRO vs ZGRO: Which Growth ETF is Best?

If you are a Canadian investor looking for a simple, one-ticket retirement portfolio, you've likely narrowed it down to the "big three" Growth ETFs: XGRO (BlackRock iShares), VGRO (Vanguard), and ZGRO (BMO).

All three of these funds target an 80% Equity / 20% Fixed Income split. They auto-rebalance, they are incredibly cheap, and they own thousands of companies across the globe. But what are the differences under the hood in 2026? Let's dive in.

1. The Fee War: A Race to the Bottom

For years, Vanguard (VGRO) and iShares (XGRO) dominated the conversation, but the competition is fierce. Here is exactly what is happening under the hood right now:

ZGRO: Effective June 6, 2025, BMO aggressively cut the management fee on ZGRO from 0.18% to 0.15%. BMO's published MER for ZGRO is 0.18%.

VGRO: Not to be outdone, Vanguard slashed their management fee from 0.22% to 0.17% effective November 18, 2025. Just like ZGRO, the officially reported MER (0.22%) lags behind reality until the next fiscal year-end report.

XGRO: iShares continues to hold strong with a highly competitive 0.19% MER and a 0.17% management fee.

Remember we are talking about basis points here. On a $100,000 portfolio, a 0.03% difference equals just $30 a year. All three are monumentally cheaper than a typical 2.2% bank mutual fund.

2. Distribution Yields

On a trailing 12-month basis (October 2026), XGRO has the highest distribution yield of the three at 1.90%, ahead of VGRO (1.76%) and ZGRO (1.33%).

3. The "Home Bias" (Canada vs US)

Vanguard's VGRO holds a slightly higher "home bias," keeping roughly 30% of its equities in Canadian stocks. XGRO and ZGRO prefer a slightly more US-heavy approach, holding around 45% in US stocks and 25% in Canadian stocks. If you believe the US tech sector will continue to dominate, XGRO or ZGRO might slightly outperform VGRO. If you prefer more local exposure, VGRO is your pick.

4. Historical Performance (The 5-Year Test)

While past performance does not guarantee future results, looking at a 5-year historical snapshot proves just how closely these funds track each other. According to data from Morningstar, 5-year growth to October 13, 2026 showed:

• ZGRO: +72.78%
• XGRO: +71.87%
• VGRO: +71.05%

Over half a decade, the total difference between the top performer and the bottom performer was just over 1.6%. This proves that your asset allocation (picking an 80/20 growth fund) dictates your returns far more than which specific brand you choose.

Pro Tip: You can run these head-to-head comparisons yourself using Morningstar.ca. Just search for an ETF ticker, navigate to the Chart section, and use the "Compare" bar to add competing ETFs!

The Final Verdict

Don't get paralyzed by analysis. The difference in performance between these three ETFs over a 20-year span will likely be negligible. The most important thing is that you pick one, buy it consistently, and pay $0 in commissions.