Why I’m Never Selling This ETF in My Retirement Account

Retirement feels harder for most Canadians, and VGRO is built as a simple, low-cost “set it and stick with it” core holding.

Key Points
  • VGRO gives you global diversification in one ETF, with an 80/20 stocks-to-bonds mix and automatic rebalancing.
  • Vanguard cut VGRO’s management fee to 0.17%, helping long-term investors keep more of their returns.
  • It can still swing a lot, so it only works if you can hold through big drawdowns without selling.

The “golden years” may not feel so golden right now. A new BMO Retirement Survey found that 67% of Canadians believe saving for retirement feels harder than it was for their parents. Even worse, 77% think it will be harder for the next generation. That anxiety makes sense in a world where costs refuse to behave. It also explains why many families plan to help their adult children financially, even if it dents their own retirement. In that kind of environment, the smartest move often looks boring. Build a plan you can stick with and stop trying to win every year. So let’s look at one I’d consider buying now and holding for life.

Child measures his height on wall. He is growing taller.

Source: Getty Images

VGRO

The Vanguard Growth ETF (TSX: VGRO) aims to be that kind of forever holding. It wraps a globally diversified set of index exchange traded funds (ETF) into one ticker and targets a long-term mix of about 80% equities and 20% bonds. That mix leans toward growth, but it still includes a stabilizer. On Sept. 30, 2025, the ETF Facts listed 32,741 underlying investments, so no single company drives the result. In practice, you buy one fund and you get Canada, the U.S., developed markets overseas, emerging markets, and a broad bond mix in the same package.

The most meaningful update over the last year came from Vanguard itself. Effective Nov. 18, 2025, Vanguard reduced VGRO’s management fee from 0.22% to 0.17%. In retirement accounts, small fee cuts add up because you keep more of the market’s return. The important part is the direction: cheaper, not pricier.

The other important point is what VGRO quietly does for you: rebalances. When stocks run, it trims back toward the target mix. When stocks fall, it adds to equities by design and leans on the bond sleeve. Retirement investing works best when your portfolio nudges you toward calm, repeatable decisions instead of asking you to be heroic at exactly the wrong moments.

The numbers

Recent numbers show how established VGRO has become. Vanguard’s Dec. 31, 2025 factsheet put total net assets at about $8.4 billion. It also listed an equity yield (dividend) of about 1.8% and an equity price-to-earnings (P/E) ratio around 21.8 times. Those figures tell you the portfolio looks like a mainstream global market basket, not a narrow bet that needs perfect timing.

Returns also show the trade you are making. The same year-end data showed a 2025 net asset value (NAV) return of 16.9% and a 2024 NAV return of 20.2%. That range matters more than a single hot year. A never-sell retirement holding must be something you can keep when it disappoints you.

VGRO could still be the wrong buy for some investors, and that’s fine. If you need a very stable income right now, an 80/20 mix may feel too bumpy, and a more balanced asset-allocation ETF might fit better. If you cannot tolerate a double-digit drawdown without selling, you’ll sabotage the strategy. But for investors who want one diversified core holding with low costs and automatic rebalancing, VGRO can be the kind of ETF you hold for decades. Even now, this is what $7,000 could bring in towards retirement.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
VGRO$43.77159$0.82$130.38Quarterly$6,959.43

Bottom line

In short, if you have felt the pressure that the BMO survey captured, you’re not alone. When 67% say retirement saving feels harder than it was for their parents, the answer is not usually a clever trick, but a clear plan, a manageable risk level, and consistency. That matters even more if you plan to help your adult children, because generosity feels great, but it still needs guardrails. A steady, all-in-one ETF cannot fix the cost of living, but it can make your retirement strategy feel less fragile, which is exactly what Canadians crave right now.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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