Investing · ETF deep dive
VBAL Vanguard Balanced ETF Portfolio
The classic 60/40 in one ticker — the balanced portfolio a generation of advisors charged 2% to build, at 0.17%.
Best for: Investors within sight of needing the money — pre-retirees, nervous accumulators, balanced-by-temperament savers
Pros
- The canonical 60/40 — decades of evidence behind the mix
- A 1.93% distribution yield, paid quarterly
- CAD-hedged foreign bonds keep the defensive side defensive
- Replaces the 2%-MER balanced mutual fund an entire generation was sold
Cons
- Published MER (0.24%) predates the fee cut
- 40% bonds is a real growth sacrifice for younger investors
- Not a withdrawal product by itself — no income design like VRIF
What's inside VBAL
| Underlying fund | Weight |
|---|---|
| Vanguard US Total Market Index ETF | 27.5% |
| Vanguard Canadian Aggregate Bond Index ETF | 22.7% |
| Vanguard FTSE Canada All Cap Index ETF | 18.4% |
| Vanguard FTSE Developed All Cap ex North America Index ETF | 11.3% |
| Vanguard Global ex-US Aggregate Bond Index ETF (CAD-hedged) | 7.8% |
| Vanguard US Aggregate Bond Index ETF (CAD-hedged) | 7.5% |
| Vanguard FTSE Emerging Markets All Cap Index ETF | 4.7% |
Equity sleeve ≈ US 44.5% · Canada 29.9% · Developed · EM (country table published) (Derived from underlying fund weights) · holdings as of April 30, 2026
The deep dive
VBAL is the index-fund version of what Canadians have historically paid the most for: the balanced fund. The average balanced mutual fund in Canada still charges close to 2%; VBAL runs the same 60/40 architecture for a tenth of that — a difference the MER calculator turns into six figures over a retirement.
For the pre-retirement decade, 60/40 has a specific job: it cuts the depth of the drawdown you might hit at exactly the wrong time, which is the core of sequence-of-returns risk. Approaching the drawdown years themselves, pair it with the cash tiers in our retiree cash strategy — or look at VRIF for the income-shaped version.
Same family, different dose
The Vanguard Canada ladder lets you change risk level without changing philosophy:
- VEQT — 100/0 · 0.24% MER · annually distributions
- VGRO — 80/20 · 0.24% MER · quarterly distributions
- VCNS — 40/60 · 0.25% MER · quarterly distributions
- VCIP — 20/80 · 0.25% MER · quarterly distributions
- VRIF — ~30/70 actual (actively allocated) · 0.32% MER · monthly distributions
Frequently asked questions
What does VBAL hold?
VBAL holds 60/40 — led by Vanguard US Total Market Index ETF at 27.5%, Vanguard Canadian Aggregate Bond Index ETF at 22.7%, Vanguard FTSE Canada All Cap Index ETF at 18.4% (as of April 30, 2026). Looking through to the securities level, that's 13,726 stocks + 17,115 bonds in one ticker. Geographic mix: Equity sleeve ≈ US 44.5% · Canada 29.9% · Developed · EM (country table published) (derived from underlying fund weights). Weights drift between rebalances — rebalanced “from time to time” at the sub-advisor’s discretion.
What does VBAL cost?
Currently 0.17% management fee; 0.24% published MER (fact sheets dated April 30, 2026 (MERs predate the Nov 2025 fee cut)). For context, the asset-allocation category now runs roughly 0.17%–0.25% all-in at the index families after the 2025 fee war — see the full cost table, and what fee gaps compound into with the MER calculator.
Should I pick VBAL or one of its siblings?
The Vanguard Canada ladder runs VEQT · VGRO · VBAL · VCNS · VCIP · VRIF — same construction, different equity/bond dose. VBAL sits at 60/40. The risk level is the decision that matters; pick the rung whose worst year you could actually sit through (the asset-allocation calculator helps), then stay put. Comparing across providers instead? Start with the family-by-family guide.
The bottom line
If you hold an old balanced mutual fund, VBAL is probably the single highest-value switch available to you. Against XBAL and ZBAL it’s the same decision as the rest of the family: tilt and pennies.
This page is for educational purposes only and is not investment advice. Fund facts were verified at Vanguard Canada's published fact sheets and product pages on June 10, 2026; holdings and weights are point-in-time and drift between rebalances; published MERs may lag recent fee changes (fact sheets dated April 30, 2026 (MERs predate the Nov 2025 fee cut)). We deliberately do not compare or project returns. Read the fund facts document before buying. See our methodology.