Top 12 Vanguard ETFs in Australia 2024 (Beginner’s Guide)

Top 12 Vanguard ETFs in Australia 2024 (Beginner’s Guide)

hey friends welcome to the ultimate
Vanguard ETF investing guide in
Australia in this video I’m going to
show you 12 of the most popular Vanguard
ETFs in Australia I’ll teach you all the
important terms and what you need to
look out for when trying to find the
right ETF to invest in so this includes
the management fees the yearly
performance dividends and the top
Holdings for each ETF now there are many
ETFs out there but I’ve kept this video
purely just Vanguard ETFs because it’s
very popular with Aussie investors I
would encourage you to watch this entire
video or at the very least the first ETF
to understand all the terms and things
you need to look out for let’s get
straight into it the first ETF on our
list is V which is the Vanguard
Australian shares index ETF this is
arguably Australia’s most popular ETF
this ETF tracks the return of the top
300 Australian companies such as BHP
Commonwealth and CSL so if you are
investing into this ETF you essentially
investing into the entire Australian
stock market the management fee is
0.07% this means if you invested $1,000
into vas you would be charged 7 cents
per year so it’s relatively low in the
grand scheme of things and don’t worry
you don’t have to remember to pay this
fee it will be automatically deducted
did from the share price so there is no
other pocket expense and this goes for
all the ETFs on the list the Inception
date was May 2009 so it’s been around
for over 15 years income distribution
means how often are dividends paid and
in this case it’s quarterly so four
times a year this ETF also allows
distribution reinvestment plan or dip
for short this basically means you can
set the dividends to automatically
reinvest themselves whenever you are
paid for example you are paid $100 of
dividend and each share is worth about
$40 each if you have set up DRP it will
automatically buy an extra two shares
for you and and the remaining $20 will
sit in your account and will be added to
your next dividend payment let’s now
look at the performance return so there
are five different headings here ETF is
the gross Return of the ETF not
including management fees bmk is the
performance of The Benchmark which is
what the ETF is trying to replicate in
this case vas is trying to replicate the
S&P and ASX 300 index as you can see the
return is quite similar give or take
some operational fees here and there ETF
total is the return after management
fees have been deducted in assuming you
reinvest your dividends so I prefer to
look at this particular column because
think is the most accurate after taking
into account all the fees distribution
return is a total dividends return the
growth return is a total share price
increase or decrease generally you make
money with stocks in two ways one from
the share price appreciation so say for
example you own 10 shares of vas at $100
each worth $11,000 if the share price
increases to $110 each then your total
shares value will increase to $11,100
giving you $100 profit and two you can
make money with dividends this is when a
company makes a profit for the year so
they choose to share some of the profit
to the shareholders in the form of
dividends now please note a company is
not required by law to pay dividends
even if they make a profit it’s at the
company’s discretion whether they want
to pay dividends however Blue Chip
companies have a reputation of paying
dividends so if they continue to be
profitable it is probably in their best
interest to keep paying dividends by law
an ETF must pass down any dividends they
receive from the companies that they
hold for example if Commonwealth Bank
decides to pay a dividend since it’s one
of vas’s Holdings vas must pass on that
dividend to the shareholder however
Commonwealth Bank can decide not to pay
a dividend then in which case v as will
also not pay dividends for the
Commonwealth portion so back to the
performance table the total of the
distribution plus growth equals the ETF
total so we can look at the 1 to 10
years average annual return please note
this is the average annual return and
not the total return so in a 10e span
some years may have returned 20% and
maybe some years returned -10% but on
average it returned about 7.8% and what
I immediately noticed is that the ETF
performed better on average in the last
few years compared to the last 10 years
but if you look at the since Inception
return which is the 15-year annual
return in this case it is still
relatively high this goes to show ETFs
generally perform well over the long
term another interesting observation is
that over the last 10 years the dividend
return is higher than the share price
appreciation this isn’t too surprising
given Australian companies have a
reputation of paying high dividends so
it’s important to note that the ETF
total assumes that you are reinvesting
your dividends so the dip feature we
previously talked about does come in
handy in this case let’s scroll down to
the next page there are a few Financial
stats here if you’re interested I won’t
go through each one or this video will
go on forever but if you’re curious to
know what they are you can quickly
Google Google them so you have the top
10 Holdings listed here and it breaks
down each sector by percentage for you
and unsurprisingly over 50% is either
financials or materials which makes
sense since Australia is famous for our
big Banks and mining companies now if
you want to find more information on a
particular ETF on this list I’ll leave a
link in the description to this page
which contains a list of all the
available Vanguard ETFs that are listed
on the ASX so in this case since we’re
looking at vas we can search for it here
and click the link it will bring you
onto this page where you can find all
the important details like the overview
portfolio data performance prices and
dividend history among other things as
you can see there is a lot of info here
so if you wanted a summarized version of
it you can click document and fact sheet
and it will bring up a nice two-page
summary of all the important things you
need to know about your chosen ETF and
this information and fact sheet is
available for all the ETFs mentioned in
this video the next ETF is VTS which is
the Vanguard us total market shares
index ETF this ETF tracks the
performance of the entire US Stock
Market please note the entire US Stock
Market makes up about 60% of the entire
Global stock market investing into VTS
will give you exposure to some of the
world’s largest US companies such as
Microsoft Apple and Google the
management fee is 0.03% which means
you’ll be charged 30 cents for every
$1,000 you invest in they also pay a
quarterly dividend however please note
that VTS is us domiciled which basically
means it’s registered in the US for tax
purposes therefore you cannot set up a
DRP and the tax is a bit more
complicated to work out however you
could easily use something like shareite
to work out your tax for you during tax
time so in my opinion it’s not a deal
breaker let’s look at the performance if
you invested 10K into VTS 5 years ago
you would have about 21k today so that’s
a bit more than a double up in fact VTS
has returned around 15% per year on
average in the last 10 years which is an
extremely good return but please keep in
mind we have been going through the
longest bull cycle in the last decade
and it’s no guarantee to continue
especially at 15% per year over the last
100 years the US Stock Market has
returned around 10% per year so if
you’re looking for a pure us ETF to
invest in from the ASX then consider
doing more research on VTS the next ETF
on the list is Vu which is is a Vanguard
all World excluding us shares index ETF
tongue twister as the name suggests this
ETF provides exposure to many of the
world’s largest companies outside the US
although the US does make up around 60%
of the global stock market there are
still many great companies outside the
US such as the Taiwan sem Conductor
Company Nestle and Samsung there is
quite an even spread of companies from
developed and Emerging Markets such as
Japan the UK France China Canada and
even Australia the management fee is
0.08% which means you’ll pay 80 cents
for every one ,000 invested however like
BTS this ETF is domiciled in the US so
that means no automatic dividend
reinvestment plan if you invested 10K
into this ETF 5 years ago you would have
around 14.5k today so that’s around 7.6%
annual return in The Last 5 Years not as
great as BTS but who’s to say the US
will continue dominating forever so this
ETF is for investors who want exposure
to companies outside the US the next ETF
on the list is vgs which is the Vanguard
msci index International shares ETF this
is another popular ETF especially to
those in the Australian fire Community
this ETF provides exposure to the
world’s largest companies outside of
Australia as you can see from the top
Holdings such as Apple Nvidia and Amazon
it’s very us heavy that is because the
US makes up over 72% of this ETF the
next largest is Japan at around 6% this
makes sense since we already know the US
market makes up the majority of the
world’s stock market the Australian
Financial Independence Community likes
to pair vgs with vas which basically
gives you exposure to the entire Global
Market or at least all the largest
companies listed in major developed
countries like the US Australia Japan
the UK and all the other countries
listed here the management fee is 0.18%
which is a bit higher than the previous
ETFs so that means you are pay $180 for
every $1,000 invested this is pretty
cheap in my opinion for what you get
they pay a quarterly dividend and this
ETF is domiciled in Australia which
means you can set up DRP let’s check out
the performance if you invested 10K in
vgs 5 years ago you would have around
19k today so that is a 5-year annual
average return of about 14% so the
return is similar to VTS which makes
sense since vgs is made up of 72% US
Stocks this just means that other
countries in the ETF did not perform as
well as the US hence Bringing Down the
total return slightly compared to VTS
but again please remember just because
the US has done well in the last 10
years does not mean it’s guaranteed to
do well in the future that is why some
people choose to diversify into an ETF
like vgs which provides a huge exposure
to the US but also contains other big
companies from other developed countries
the next ETF on the list is vdhg which
is the Vanguard Diversified high growth
index ETF this is another popular choice
in the Australian Finance Community as
it’s an all-in-one ETF that basically
tracks everything vdh is an ETF that
tracks other ETFs as you can see in the
breakdown it’s made up of around 36%
Aussie shares 50% International shares
5% Emerging Markets from countries like
China India and Brazil and the remaining
10% is made up of ETFs that track bonds
and cash so it’s a very well Diversified
ETF that has a bit of everything if you
want a onstop shop ETF that tracks a bit
of everything in the global market then
check out vdh the management fee is 0.2
7% which is a bit more expensive than
some of the other ETFs on this list
however you are getting a ton of
exposure to many different markets that
works out to be $2.70 for every $1,000
invested this ETF is domiciled in
Australia so you can set up DRP and you
will receive dividends four times a year
let’s check out the performance if you
invested 10K 5 years ago you would have
around 15.6k today so that is a 5year
average annual return of about 99.3% not
bad at all for an extremely Diversified
ETF you may have noticed it’s not as
high as VTS or vgs but is simply because
the US market has outperformed in the
last 5 years compared to other markets
since vdhg is extremely Diversified in
other markets that did not perform as
well it means the overall return is not
as high however if the US market
underperforms then it will not be as
affected as other us heavy ETFs so it’s
kind of a double-edged sword in terms of
performance the highest highs won’t be
super high but then the lowest lows
won’t be super low it will return the
average of how the entire world performs
now there is a constant debate in the
Australian Finance Community especially
in the fire Community about whether you
should pick VA S Plus vgs or just vdhg
on its own now there is no wrong answer
it really depends on your risk tolerance
and strategy it may be easier to
rebalance vas plus vgs when one ETF gets
too high in your overall portfolio
whereas with vdhg you are stuck with the
percentage allocation that they have
picked for you but then having only one
ETF means less brokage fees you can
nitpick all you want but at the end of
the day you are investing into very
similar things it’s basically the same
thing except bdhe is a bit more
Diversified with some emerging markets
and bonds exposure if you’re a bit older
or more conservative then bthg could be
a better choice however please note this
is not a bu recommendation in fact none
of these ETFs that I talk about today
are buy recommendations I am not a
financial advisor and is not Financial
advice all the examples I use in this
video are for educational purposes only
please do your own research and go see a
professional if you would like Financial
advice with that out of the way let’s
move on the next ETF on the list is VAP
which is the Vanguard Australian
property Securities index ETF this ETF
allows you to invest in property
Securities listed on the SX it tracks
the return of the SX 300 a index a
stands for Australian real estate
investment trusts so basically it’s an
ETF that allows you to invest into
Australia’s real estate market without
actually buying the physical property it
contains some of Australia’s biggest
real estate groups including the Goodman
group centa group and Stockland these
companies own some of Australia’s
biggest retail office and Industrial
properties so you can Google some of
these companies to see what they own for
example Goodman group owns many
warehouses large facilities and offices
not just in Australia but all over the
world the management fee is 0.23% so
you’re paying $230 for every $1,000
invested they pay a quality dividend and
are domiciled in Australia which means
you can set up DRP now their performance
is quite interesting if you invested 10K
5 years ago you would have around 13.2k
today so that’s an average annual return
of about 5.2% now the reason this is low
is that you’ll notice 5 years ago was
2019 and in 2020 we had the pandemic
which shut down the entire world and a
lot of people were laid off or working
from home so many offices and warehouses
were closed which affected the rental
income for many of these companies
however it has since recovered if you
look at the 10-year return it’s much
more promising at an average return of
99.3% per year so if you’re interested
in investing in Australian real estate
but don’t have enough money for the
physical property you could look at an
ETF like this or other ETFs or rats I
would encourage you to do more research
to find one that suits your strategy the
next ETF is vhy which is the Vanguard
Australian shares high yield ETF this
ETF provides exposure to companies on
the SX that pay a higher dividend
compared to other companies basically it
contains over 70 of Australia’s highest
paying div div companies including NAB
West farmers and Woodside a lot of these
banking mining energy and consumer
discretionary companies are highly
profitable so they choose to pass on
some of their profits in the form of
dividends to make their shares more
valuable Australian Blue Chip companies
are famous for paying a high dividend to
attract new investors however please
note that Dividends are not guaranteed
there are no legal obligations for
companies to pay dividends most
profitable companies choose to pay
dividends to attract new investors but
if the company did not have a good year
then they can choose to reduce or not
pay dividends completely I just wanted
to put that out there because there are
some misconception that Dividends are
guaranteed vhy has a management fee of
0.25% so you’re paying $250 for every
$1,000 invested like most Vanguard ETFs
they pay dividends quarterly and you can
set up DRP since they are Australian
domiciled if you invested 10K 5 years
ago and reinvested your dividends you
would have around 16k today that is a
5year average annual return of about 10%
as you can see over the long term more
than 50% of this came from dividends
rather than share price increase this
does make sense since this is a dividend
focused ETF and again I want to remind
you that these returns are assuming you
reinvest all your dividends now I get a
lot of questions about vhy versus vas
it’s interesting to note that vhy has
performed better over 5 years but vas
has performed better over 10 years this
could be due to the nature of the two
ETFs vas contains more growth companies
that have room to grow which means in a
stable environment there are more
potential for higher returns due to
these companies becoming more profitable
in contrast vhy only selects the Blue
Chip companies that are already
profitable and have less room to grow as
a company this means in a unpredictable
environment investors may choose to
invest in companies that are already
established vhy is more appropriate for
those looking to be paid consistent
dividends and vas is more appropriate
for those who expect a bit of growth
however since the big companies make up
a large percentage of the ASX basically
all the companies in vhy is already
included in vas it’s just a bit more
diluted with some smaller growth
companies so I would encourage you to do
more research and select the one that
suits your investment goals the next ETF
on the list is vsso which is the
Vanguard Australian small caps index ETF
now a lot of Australian ETFs are
overweighted with big blue chip
companies this means the smaller
companies will get drowned out in
waiting so this ETFs gives you a chance
to invest in over 180 of Australia’s
smaller companies it contains companies
like nextdc otm and JB highi since these
are smaller cap stocks they have the
potential to provide greater returns
however this also means it contains more
risk with an increased likelihood some
of these companies go out of business
investing in an ETF does help negate
that risk a bit the management fee is
0.3% which means you’ll pay $3 for every
$1,000 invested and unlike some of the
other ETF ETFs you will be paid
dividends twice a year instead of
quarterly which makes sense since
smaller companies pay dividends less
often and since the ETF is Australian
domiciled you can set up DRP let’s look
at the performance if you invested 10K 5
years ago you would have 14.5k today so
this ETF is for someone considering a
more risky ETF that could potentially
have a higher return but as always
please do your own research the next ETF
on the list is vge which is the Vanguard
emerging markets shares ETF this ETF
provides exposure to companies listed on
Emerging Markets so countries like China
India Brazil South Africa and Mexico
they are considered to be Emerging
Markets which means there is more
potential for long-term growth but at
the same time a bit more risk some of
these companies include Taiwan
semiconductor manufacturing company
10cent and Reliance Industries I bet you
haven’t heard of some of these companies
but that’s the whole point they are from
an emerging market and as you can see
the market allocation is quite Asia
heavy the top three countries are from
Asia and make up 68% of the ETF this
does make sense since a lot of these
emerging companies are from Asia the
management fee is 0.48% which works out
to be $480 for every $1,000 you invest
they pay a quality dividend and you can
set up DRP since it’s Australian
domiciled so if you invested 10K 5 years
ago you would have around 12K today that
is a 5year average annual return of
around 3.2% which to be honest is hardly
impressive however please understand
these are Emerging Markets so they are
less established and developed markets
like the US Australia and the UK so they
could be higher Highs but lower lows if
you look at the 10-e average return it’s
a bit better at around 5.5% this
suggests that the ETF was doing much
better before the pandemic as I
mentioned before during economic
downturns investors usually flock to
safer more established stocks this could
explain the poor performance of VG some
investors like to add a small portion of
Emerging Market ETFs into their
portfolio so they can capture some of
the upside if they do outperform like
every ETF on this list I would recommend
you do more research if you’re
interested in Emerging Markets the next
ETF on the list is vae which is the
Vanguard Asia excluding Japan shares
index ETF this ETF provides exposure to
companies listed in Asia excluding Japan
Australia and New New Zealand is
basically another Emerging Markets ETF
which only contains Asian companies as I
mentioned previously Asia already makes
up a large percentage of all Emerging
Markets so vae is made up of companies
from China India Taiwan Korea and other
Asian countries some of the top listed
companies are Samsung 10cent and Alibaba
the management fee is 0.4% which works
out to be $4 for every $1,000 you invest
vae pays dividends four times a year and
are Australian domiciled so you can set
up DRP if you invested 10K 5 years ago
you would have around 12K today so
that’s a 5-year average annual return of
about 3.8% which is a bit higher than
vge this suggests that Asian companies
outperform the rest of the emerging
markets in The Last 5 Years however like
vge this ETF may have a higher return
potential but also comes with a bit more
risk due to the nature of Emerging
Markets the next ETF on the list is V
which is the Vanguard ethically
conscious Australian shares ETF this is
an ethical ETF that provides exposure to
companies listed on the Australian stock
market that are not involved in fossil
fuels nuclear power Alcohol and Other
requirements that are carefully screened
if you open the fact sheet and scroll
down you can get a better idea of their
screening process and why some big
companies have been excluded from the
ETF some of their top Holdings include
Commonwealth Bank Fortescue medals and
telra if you’re interested you can
download their full Holdings on their
website the management fee is 0.16%
which means you’ll pay $160 for every
$1,000 invested you’ll receive dividends
quarterly and you can set up DRP since
it’s Australian dold please note this is
still a new ETF that was formed in 2020
so you can only see the three years
performance if you invest 10K 3 years
ago you would have around 12.8k today so
that’s a 3year annual average return of
8.7% ethical investing has become more
popular in the last few years to the new
generation of investors who care about
the ethical implications of the
companies they are investing in so if
you’re interested in ethical investing
you could look at this one but please
remember to do your own research the
next ETF on the list is vesb which is
the Vanguard ethical conscious
International shares index ETF this is
another ethical ETF that provides
exposure to the top ethical companies in
the world excluding Australia ACC
according to their website this ETF is
carefully screened to exclude companies
with involvement in fossil fuels nuclear
power Alcohol Tobacco cannabis gambling
adult entertainment or weapons some of
their top companies include Microsoft
Tesla and JP Morgan Chase like most
Global ETFs is dominated by us companies
that make up around 73% of the entire
ETF Japan UK Switzerland and Canada
makes up the rest of the top five the
management fee is 0.18% which means
you’ll pay $180 for every $11,000
invested you’ll receive dividends four
times a year and you can set up dip
since it’s Australian domiciled now
let’s look at the performance if you
invested 10K 5 years ago you would have
19.5k today that’s almost a double up
this means the average annual return is
around 14.3% for the last 5 years this
is a really good return but please
remember it’s not guaranteed to continue
in the future and this goes for all the
ETFs on the list by the way if you’re
enjoying this video comment the word
Moon down below so I know who you are
and if you’re new around here what are
you waiting for mate subscribe to the
channel and join this amazing Community
also be sure to sign up to my free
newsletter Aussie money Club where once
a week I’ll send you some money tips my
current thoughts on the economy and any
cool things that are happening in my
life and if you want to learn how to
invest in ETFs then check out this video
on screen where I show you how to buy
ETFs using an Australian online broker
and as always thank you for watching I
appreciate you and I’ll see you in the
next video
[Music]

In this video, I’m going to show you 12 of the most popular Vanguard ETFs in Australia. Welcome to the ultimate Vanguard ETF guide.
⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯
📩 Sign up to my free email newsletter!
https://aussiemoneyclub.beehiiv.com/subscribe

🎁🎁🎁 Free Sign Up Bonus 🎁🎁🎁

💰 Use Moomoo App (chess sponsored) to buy ETFs & receive these free bonuses:
1. Get 10 FREE Stocks (worth up to $3,626)
2. Earn 6.8% Interest (up to $3,353) for up to 100K Uninvested Cash
3. $2,000 Brokerage free cards (free brokerage fees for 30 days)
Use this link to sign up: https://j.moomoo.com/00A1xQ

Vanguard ETF List: https://www.vanguard.com.au/adviser/invest/funds-and-etfs

🎬🎬 🎬 More Useful Videos 🎬 🎬 🎬
► How To Invest in ETFs/Index Funds: https://youtu.be/ZYZoVaqoomk
► How To Invest in Australia For Beginners: https://youtu.be/5wOkzuPzGaY
► 15 Most Popular Aussie Brokers: https://youtu.be/TD82JT3GgvE
► How To Research Stocks: https://youtu.be/Xpyb3iQclts
► How To Earn 6.8% Interest With Cash Plus: https://youtu.be/mgs5aWYNREo

💰💰💰Grab Some Freebies 💰💰💰

📈 Investing Apps that I use:
► Moomoo: Get 6.8% interest +10 FREE shares: https://bit.ly/3PgUN6E
► Stake: Get $10 FREE credit & a FREE stock (worth up to $150): https://bit.ly/3L13UGm or Use Code: bryanl728
► Webull: Get 6 FREE shares worth up to $1,200: https://bit.ly/44gG8xy
► Raiz: Get $5 FREE when you sign up: https://bit.ly/3KYJGgr or Use Code: W3CG4J
► CoinSpot: Get $20 of Free Bitcoin (BTC): https://bit.ly/3Ed2XXJ

🏦 Banks & Finance Apps that I use:
► ING: Get $75 FREE if you sign up: https://bit.ly/48HzmmO
► Ubank: Get $30 FREE if you sign up with my code & make 5 small purchases: https://bit.ly/3L0duZM or Use Code: MDPYUAG
► TopCashback: Get Bonus $15: https://bit.ly/48T9DXD
► ShopBack: Get $10 back when you spend $20: https://bit.ly/3sxAlG0
► Cash Rewards: Get $10 back when you spend $20 within 14 days: https://bit.ly/44tnG3Z
► Track Your Shares Here (Get 4 Months Free Using Below Link):
https://www.sharesight.com/bryaninvest/

📸 My YouTube Gear:
► My Entire YouTube Gear: https://kit.co/BryanInvest
► My Favourite Books: https://kit.co/BryanInvest
► My Music: https://bit.ly/3v2VERu

💸 Some links above may be affiliate or referral links. It doesn’t cost you any extra to use them but it does help support my channel! ☺️

👨🏻‍💻 Business Enquiries: bryaninvestbusiness@gmail.com

‼️ Disclaimer:
Although I have a Finance degree, I am not a financial advisor, and my comments are for entertainment purposes only. It does not take into account your objectives, financial situation or needs. Please perform your own due diligence when investing your money or seek the advice of a licensed advisor.

#vanguard #ETFs #indexfund

⏰ TIMESTAMPS
0:00 – Intro
0:30 – VAS
3:47 – VTS
5:57 – VEU
6:52 – VGS
8:24 – VDHG
10:48 – VAP
12:16 – VHY
14:12 – VSO
15:19 – VGE
16:48 – VAE
17:45 – VETH
18:47 – VESG