Investing in VGRO

Investing
#1

Hi Jeremy, do you think investing in VGRO is a good option? It does not look like I am able to invest in TDIFs here in Canada.

Thanks in advance!

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#2

Hey @darwin.ayson!

Yeah, I actually love VGRO! It’s a globally diversified “fund of funds” designed for Canadian investors. Basically all of the exact same benefits of a TDIF EXCEPT that it doesn’t automatically migrate more towards bonds as you age. That’s no big deal. You can add more bonds later… or not. Some people don’t think you should ever make your portfolio more conservative. Here’s a look at what’s inside VGRO:

Fund Allocation
Vanguard US Total Market Index ETF 33.70%
Vanguard FTSE Canada All Cap Index ETF 23.90%
Vanguard FTSE Developed All Cap ex North America Index ETF 17.30%
Vanguard Canadian Aggregate Bond Index ETF 11.40%
Vanguard FTSE Emerging Markets All Cap Index ETF 5.80%
Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged 4.30%
Vanguard US Aggregate Bond Index ETF CAD-hedged 3.60%

So you can see it’s a super nicely balanced 80% stocks/20% bonds portfolio of US, Canadian and international stocks and bonds.

If I were to CRITIQUE it, 24% might be a little high for Canadian stocks (as they make up a much smaller proportion of the world market cap, but maybe it’s ok to have a home country tilt). MAYBE 20% bonds is too high or too low based on your age and risk tolerance.

But yeah, all in all, if I lived in Canada I very likely might dump 100% of my portfolio into this fund. I love it! :slight_smile:

#3

Thank you very much @Jeremy! I have been trying to find a way to invest in TDIFs ever since I learned about them from you but yeah, it does not look like it is possible in Canada.

I chose VGRO because I am too scared to go 100% stocks! Will turn 35 in a couple of months. I like it because it already does the rebalancing for me but I hear you that I will have to add more bonds when the time comes.

Thank you for having me here and I look forward to learning more from this wonderful community!

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#4

Awesome! Sounds like you’re killing it. Remember picking the exact right investment or the exact right asset allocation isn’t what’s most important. What’s MOST important is putting in more money! :slight_smile:

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#5

Yup, I totally get that. However, I am just trying to finish my debt at the moment. I am hoping to be debt-free (except for the mortgage) before 2020 ends and then plow more money to my investments.

#6

I love that plan!!! :slight_smile:

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#7

Hey Darwin! Fellow Canadian here and I just finished jeremy’s course and I have some questions for you.

  1. I was wondering if you end up going 100% with VGRO or you are investing in other ETFs as well?
  2. What brokerage you are using? I am thinking of TD direct vs Questrade but would welcome your opinion?
  3. Under RRSP or TFSA or both?
  4. Do you contribute lump sum quarterly or yearly or doing monthly contributions ?

Thanks a lot