Get to Know The Most Popular ETF’s in Australia: Vanguard’s Finest Four

If you’re looking for some of the best Vanguard ETFs in Australia, you’ve come to the right place. In this blog post, we’ll take a look at four of the most popular Vanguard ETFs on the market today. Each of these ETFs has something unique to offer investors, so it’s important to understand what they are before making any decisions. Let’s get started!

Who is Vanguard?

If you’re looking to invest in ETFs, Vanguard’s ETF selection is a great place to start. With a wide range of ETFs to choose from, Vanguard can help you reach your investment goals. And with Jack Bogle’s history of success, you can be sure that Vanguard will continue to provide quality investment options for years to come.

When it comes to investing, Vanguard is one of the best providers out there. With over 7 trillion dollars in assets under management, Vanguard is known for its quality investment options. And with Jack Bogle’s history of success, you can be sure that Vanguard will continue to provide great investment opportunities for years to come.

If you’re looking for an ETF provider, Vanguard should be one of the names at the top of your list. With a wide range of ETFs to choose from, their passively managed ETFs have been able to outperform fund managers almost 100% of the time (mainly because fund managers struggle to beat the index), so you can be confident that you’re in good hands. Whether you’re new to investing or you’re a seasoned pro, Vanguard is a great option to consider. With their history of success and wide range of investment options, they’re sure to have something that meets your needs.

Which Vanguard ETF’s are the most popular in Australia?

The Vanguard ETFs (Exchange Traded Funds) that are most popular in Australia are VAS, VTS, VEU, and VDHG funds. These funds provide a wide range of exposure to the Australian and international markets, and are all run by Vanguard – a not-for-profit company. What this means is that Vanguard aims to minimise fees for its investors. A real bonus for these funds is that returns (dividends/distributions) are distributed quarterly meaning a steady income throughout the year.

Vanguard Australian Shares Index ETF Overview – (ASX:VAS)

The ETF provides low-cost, broadly diversified exposure to Australian companies and property trusts listed on the Australian Securities Exchange. It also offers potential long-term capital growth along with dividend income and franking credits.

– Vanguard

The Vanguard Australian Shares Index ETF (ASX: VAS) is a great choice for buy and hold investors who want exposure to the Australian market for long-term capital growth. VAS tracks the S&P/ASX 300 index and provides a low cost (0.15% p.a fees) while having a fund size of $10.06 Billion. Even with a couple of rough years in the market, the fund has still provided an average return of 8.95% since inception in 2009. Additionally, distributions have the tax advantage of franking credits which give your return a slight boost.

Vanguard US Total Market Index ETF Overview – (ASX:VTS)

The ETF provides exposure to some of the world’s largest companies listed in the United States. It offers low-cost access to a broadly diversified range of securities that allows investors to participate in their long-term growth potential. The ETF is exposed to the fluctuating values of the US currency, as there will not be any hedging to the Australian dollar.

– Vanguard

If you’re looking for a broad, low-cost U.S. equity exposure, the Vanguard US Total Market Index ETF (ASX:VTS) could be a great option for you. The fund tracks the CRSP US Total Market Index, which holds over 3,000 U.S. companies. And because it’s passively managed, its expenses are relatively low at just 0.03% annually. Additionally, VTS has delivered strong returns since its inception, with an average annual return of 13.14%.

One point of contention about this ETF is that it’s domiciled in the United States. This means that it’s exposed to the American economy and market, which can be a good thing during times of strength. However, it also means that the fund is susceptible to fluctuations in the value of the U.S. dollar relative to Australian dollars. So if you’re worried about potential currency risk, you may want to look at a currency hedged ETF instead.

Vanguard All-World ex-U.S. Share Index ETF Overview – (ASX:VEU)

The ETF provides exposure to many of the world’s largest companies listed in major developed and emerging countries outside the US. It offers low-cost access to a broadly diversified range of securities, industries and economies. The ETF is exposed to the fluctuating values of foreign currencies, as there will not be any hedging of foreign currencies to the Australian dollar.

See also

Investing

Exchange Traded Funds vs Managed Funds: What’s the Difference?

– Vanguard

The Vanguard All-World ex-U.S. Share Index ETF (ASX:VEU) is a great option for those looking for international diversification and long term growth potential. The ETF tracks the FTSE All-World ex-US Index, which includes over 3500 companies from developed countries outside of the US. Exposure to Europe as a region and Financials as a sector are the fund’s holdings making it a great option for investors after exposure in those regions. The ETF has been in operation since 2007 and has generated returns of 7.30% since inception. Management fees are a low 0.07% p.a., making it a cost effective option for investors.

Vanguard Diversified High Growth Index ETF – (ASX:VDHG)

The ETF provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. The High Growth ETF invests mainly into growth assets, and is designed for investors with a high tolerance for risk who are seeking long-term capital growth. The ETF targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes.

– Vanguard

If you’re looking for a diversified ETF with a low fee and global diversification in one click , Vanguard’s Diversified High Growth Index ETF (ASX:VDHG) is a great option. With holdings in multiple global indices, VDHG is perfect for investors looking for broad exposure to the market in one transaction. Additionally, the fund has a target allocation of 10% to income-producing assets and 90% to growth assets, so it’s well-suited for those with a long-term investment horizon. The total return since inception has been 5.78% since its inception in 2017, with the last two years being absolute shockers in the market this has pulled the average return down. Long term projections should see this stock return to the 7-9% mark.

So which is the best Vanguard ETF?

Each of these Vanguard ETFs has its own unique benefits, so it really depends on your investment goals and objectives. If you’re looking for broad exposure to the Australian market, then VAS is a great option. If you’re looking for broad international diversification, then VEU could be a good choice. And if you’re looking for a diversified ETF with a focus on growth assets and an all in one playform, then VDHG could be a good option.

Ultimately, the best Vanguard ETF for you will depend on your specific investment goals and objectives. So be sure to do your own research before making any investment decisions. If you are interested in building an all ETF super portfolio be sure to check out our post about a three ETF portfolios including some of these most popular funds.

Where Can I Buy Vanguard ETFs?

If you’re looking to invest in Vanguard ETFs, you have a few different options as to where you can buy them. Any professional broker or online brokerage platform can help you purchase Vanguard ETFs, but for ease of use including automating your portfolio, I would recommend using Pearler. With a flat $5.50 brokerage fee, you can buy shares under your own HIN and use the automation feature to make it easy to invest without having to worry about it.