XGRO holds 80% global equities and 20% bonds in one ticker — the textbook "growth" allocation. 0.20% MER. For investors who want most of the upside of all-equity but with a partial bond cushion for the inevitable rough years (2022's -11.2% would have been -18% without bonds).
The data: a 100% equity portfolio (XEQT) suffered a 22% peak-to-trough drawdown in March 2020. XGRO's 80/20 mix? Just 14%. The 20% bond allocation lopped 8 percentage points off the worst month most investors will ever see. Long-run returns are ~1.5% lower than XEQT, but XGRO's sleep-at-night factor is the difference between sticking with your plan and panic-selling at the bottom.
XGRO is the right answer for investors 5-15 years from retirement who want most of XEQT's upside with meaningfully better downside protection. The 20% bonds smooth the worst months without giving up much long-term return. For accumulators under 35, XEQT still wins. For 60+, switch to XBAL.