Vanguard is known as one of the cheapest ETF providers on the ASX, by management fee (MER) and has billions in their managed funds and ETFs. At SelfWealth, we hold a similar title: Australia’s cheapest online brokerage platform. It’s only $9.50 to buy or sell shares, ETFs and others, regardless of how much your selling or buying.
A lot of SelfWealth investors hold Vanguard products, so we thought we’d take a look to see how they rank by the value held by SelfWealth investors.
The Top 10 Vanguard ETFs
These are the top 10 Vanguard ETFs held by SelfWealth investors, ranked by the value held.
|Vanguard ETF Name||MER||ASX Code||% of Vanguard ETFs|
|Vanguard Australian Shares Index ETF||0.10%||ASX VAS||22.10%|
|Vanguard U.S. Total Market Shares Index ETF||0.03%||ASX VTS||19.40%|
|Vanguard MSCI Index International Shares ETF||0.18%||ASX VGS||16.10%|
|Vanguard Diversified High Growth Index ETF||0.27%||ASX VDHG||11.30%|
|Vanguard All-World ex-U.S. Shares Index ETF||0.09%||ASX VEU||10.30%|
|Vanguard Australian Fixed Interest Index ETF||0.20%||ASX VAF||5.20%|
|Vanguard MSCI Index International Shares (Hedged) ETF||0.21%||ASX VGAD||4.30%|
|Vanguard Australian Shares High Yield ETF||0.25%||ASX VHY||4.20%|
|Vanguard FTSE Asia ex Japan Shares Index ETF||0.40%||ASX VAE||3.90%|
|Vanguard Australian Property Securities Index ETF||0.23%||ASX VAP||3.10%|
What’s an ETF MER (Management Expense Ratio) and How Is it Paid?
An ETF’s management expense ratio — abbreviated as MER — is the fee the manager takes for operating the ETF. You aren’t required to take any action to pay this fee, it will simply be taken from the ETF’s assets throughout the year. Although you aren’t paying it directly, it should be considered as it may affect performance. Check with the ETF provider 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 performance.
What Do The Top 10 Vanguard ETFs Cover?
Here’s a quick summary of the index that each of the top 10 Vanguard ETFs to save you some time. These were taken directly from the Vanguard website and last updated 6th August 2019. Please visit the Vanguard website for more up-to-date information.
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 U.S. Total Market Shares Index ETF, 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.
3. Vanguard MSCI Index International Shares ETF, ASX VGS
The ETF provides exposure to many of the world’s 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 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.
5. Vanguard All-World ex-U.S. Shares Index ETF, 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.
6. Vanguard Australian Fixed Interest Index ETF, ASX VAF
The ETF invests in high-quality, income-generating securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, as well as investment-grade corporate issuers. While being low cost, the ETF also provides some protection against capital volatility. The investments in the ETF are predominantly rated BBB- or higher by Standard & Poor’s rating agency or equivalent.
7. Vanguard MSCI Index International Shares (Hedged) ETF, ASX VGAD
The ETF provides exposure to many of the world’s 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 hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations.
8. 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.
9. 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.
10. 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.
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