This article covers:

• The Top 10 Vanguard ETFs

• What is an ETF Management Expense Ratio and How Is it Paid?

• What Do The Top 10 Vanguard ETFs Cover?

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Vanguard is known as one of the cheapest ETF providers on the ASX by management expense ratio (MER). The company has billions of dollars invested in its managed funds and ETFs.

At Selfwealth, we hold a similar title. We allow investors to trade flat-fee in more markets than any other Australian investment platform all with one single account. It's only $9.50 to buy or sell ASX shares and ETFs, regardless of how much you're trading.

A lot of Selfwealth members hold Vanguard ETFs, so we thought it's time to look at how they rank across the Selfwealth community.

The Top 10 Vanguard ETFs

These are the top 10 Vanguard ETFs held by Selfwealth members, ranked by the value held.

In total, there are 30 Vanguard ETFs on the ASX. Holdings in the top 10 Vanguard ETFs represent 92.2% of money invested across all Vanguard ETFs.

Vanguard ETF NameMERCode% of Vanguard ETFs1. Vanguard Australian Shares Index ETF0.10%ASX: VAS29.8%2. Vanguard Diversified High Growth Index ETF0.27%ASX: VDHG22.4%3. Vanguard MSCI Index International Shares ETF0.18%ASX: VGS18.4%4. Vanguard U.S. Total Market Shares Index ETF0.03%ASX: VTS7.6%5. Vanguard All-World ex-U.S. Shares Index ETF0.07%ASX: VEU3.8%6. Vanguard Australian Shares High Yield ETF0.25%ASX: VHY3.2%7. Vanguard MSCI Index International Shares (Hedged) ETF0.21%ASX: VGAD2.0%8. Vanguard Ethically Conscious International Shares Index ETF0.18%ASX: VESG1.9%9. Vanguard Australian Property Securities Index ETF0.23%ASX: VAP1.6%10. Vanguard FTSE Asia ex Japan Shares Index ETF0.40%ASX: VAE1.5%

What is an ETF Management Expense Ratio and How Is it Paid?

An ETF's management expense ratio (MER) is the fee the manager takes for operating the ETF.

You do not need to take any action to pay this fee. It will simply be deducted from the fund's assets throughout the year and built into the price of the ETF.

Although you aren't paying the fee directly, it should be considered as it may affect performance. Check with Vanguard, or an other ETF provider for that matter, for more information.

ETF performance numbers are required to include the management fee. So when looking at the performance of a particular ETF, you shouldn't have to make additional calculations to subtract the management expense from the fund's performance.

What Do The Top 10 Vanguard ETFs Cover?

To save you time, here's a quick summary of the index that each of the top 10 Vanguard ETFs track. This information was taken directly from the Vanguard website. For more details, please visit the Vanguard website for the relevant PDS documents.

1. Vanguard Australian Shares Index ETF (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.

2. 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.

3. Vanguard MSCI Index International Shares ETF (ASX: VGS)

The ETF provides exposure to many of the world largest companies listed in major developed countries. It offers low-cost access to a broadly diversified range of securities that allow investors to participate in the long-term growth potential of international economies outside Australia.

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.

4. Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

The ETF provides exposure to some of the world 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.

Read here about currency hedging for the AUD/USD.

5. Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

The ETF provides exposure to many of the world 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.

6. Vanguard Australian Shares High Yield ETF (ASX: VHY)

The ETF provides low-cost exposure to companies listed on the Australian Securities Exchange (ASX) that have higher forecast dividends relative to other ASX-listed companies. Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company. Australian Real Estate Investment Trusts (A-REITS) are excluded from the index.

7. Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

The ETF provides exposure to many of the world companies listed on the exchanges of major developed economies around the world. The ETF offers low-cost access to a broadly diversified range of securities that allows investors to participate in the growth potential of international companies listed outside of Australia.

The ETF is hedged to Australian dollars so the return (income and capital appreciation) of the ETF is relatively unaffected by currency fluctuations.

8. Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)

The ETF provides exposure to many of the world largest companies listed in major developed countries. It offers low-cost access to a broadly diversified range of securities that excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment, and a conduct-related screen based on severe controversies.

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.

9. Vanguard Australian Property Securities Index ETF (ASX: VAP)

The ETF provides a low-cost way to invest in property securities listed on the Australian Securities Exchange. The property sectors in which the ETF invests include retail, office, industrial, and diversified. The ETF offers potential long-term capital growth and tax-effective income that may include a tax-deferred component.

10. Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

The ETF provides low-cost exposure to securities listed in Asia excluding Japan, Australia, and New Zealand. 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.

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