Investing · ETF deep dive
ZGRO BMO Growth ETF
The cheapest 80/20 in Canada — with a tax-aware bond sleeve most buyers never notice.
Best for: Cost-first accumulators at the standard growth mix
Pros
- Cheapest fee at the rung (0.15% / 0.18% MER)
- ZDB discount-bond sleeve is deliberately tax-efficient in non-registered accounts
- US bond sleeve explicitly CAD-hedged (ZUAG.F hedged units)
Cons
- S&P-style US core with light mid/small weights, as across the family
- Smaller fund than VGRO/XGRO ($740M)
What's inside ZGRO
| Underlying fund | Weight |
|---|---|
| BMO S&P 500 Index ETFZSP | 36.3% |
| BMO S&P/TSX Capped Composite Index ETFZCN | 20.1% |
| BMO Discount Bond Index ETFZDB | 14.1% |
| BMO MSCI EAFE Index ETFZEA | 13.1% |
| BMO MSCI Emerging Markets Index ETFZEM | 7.4% |
| BMO US Aggregate Bond Index ETF (Hedged Units)ZUAG.F | 6.1% |
| BMO S&P US Mid Cap Index ETFZMID | 2.0% |
| BMO S&P US Small Cap Index ETFZSML | 1.0% |
US 44.3% · Canada 34.2% (total-portfolio look-through incl. bonds) (Provider look-through including bonds, June 9, 2026) · holdings as of June 9, 2026
The deep dive
ZGRO’s quiet differentiator is its Canadian bond sleeve: ZDB, BMO’s Discount Bond ETF, which holds bonds trading below par so more of the return arrives as capital gain instead of fully-taxed interest — a deliberate kindness to non-registered holders that the aggregate-bond sleeves at Vanguard and iShares don’t attempt. Inside a TFSA or RRSP it makes no difference; in a taxable account it’s a genuine point for BMO.
The US bond sleeve is explicitly hedged — “ZUAG.F (Hedged Units)” by name — and the whole portfolio rebalances on BMO’s stated quarterly schedule. Price, policy, and a tax-aware bond sleeve: ZGRO’s case in nine words.
Same family, different dose
The BMO ETFs ladder lets you change risk level without changing philosophy:
- ZEQT — 100% equity (actual) · 0.18% MER · quarterly distributions
- ZBAL — 62/38 actual · 0.18% MER · quarterly distributions
- ZCON — 42/58 actual · 0.18% MER · quarterly distributions
Frequently asked questions
What does ZGRO hold?
ZGRO holds 81/19 actual — led by BMO S&P 500 Index ETF (ZSP) at 36.3%, BMO S&P/TSX Capped Composite Index ETF (ZCN) at 20.1%, BMO Discount Bond Index ETF (ZDB) at 14.1% (as of June 9, 2026). Geographic mix: US 44.3% · Canada 34.2% (total-portfolio look-through incl. bonds) (provider look-through including bonds, june 9, 2026). Weights drift between rebalances — rebalances quarterly to strategic weights — the most explicit schedule.
What does ZGRO cost?
Currently 0.15% management fee; 0.18% published MER (fact sheets as of May 31, 2026). 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 ZGRO or one of its siblings?
The BMO ETFs ladder runs ZEQT · ZGRO · ZBAL · ZCON — same construction, different equity/bond dose. ZGRO sits at 81/19 actual. 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
For a taxable-account 80/20, arguably the best-engineered of the three; everywhere else it’s the cheapest. Tilt and construction flavour decide against VGRO/XGRO.
This page is for educational purposes only and is not investment advice. Fund facts were verified at BMO ETFs'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 as of May 31, 2026). We deliberately do not compare or project returns. Read the fund facts document before buying. See our methodology.