The verdict
Point by point, who wins.
This is really a question about bonds. VEQT is 100% equities. VGRO is ~80% equities and ~20% bonds. The right choice depends on your risk tolerance and time horizon, not which fund is "better."
01Higher expected long-term returnsAll-equity portfolios have historically outperformed balanced portfolios over long periods (20+ years), though with more volatility along the way.VEQT
02Lower volatilityThe 20% bond allocation cushions drops during market downturns. If a 30%+ portfolio drop would cause you to sell in a panic, VGRO may keep you invested.VGRO
03Best for long time horizon (15+ years)With decades to recover from downturns, the all-equity approach historically rewards patience with higher returns.VEQT
04Best for shorter horizon or lower risk toleranceIf you're within 10-15 years of needing the money, or if market drops genuinely stress you, the bond cushion helps.VGRO
05Lowest cost (MER)Both VEQT and VGRO have the same ~0.20% effective MER after Vanguard's November 2025 fee cuts.Tie
The recommendation
Young investors with a 20+ year horizon and strong stomach for volatility: VEQT. Investors closer to needing the money, or who know they'd panic-sell in a crash: VGRO. The best fund is the one you can hold through the worst days without selling.
Editorial analysis · Public fund data · Not financial advice · Your situation may differ