Vanguard offers a diverse range of index fund Exchange Traded Fund (ETF) financial products across a broad range of asset classes and individual markets, and this article will provide an overview of just what is available for you to invest in.
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Introduction to Vanguard
Vanguard is one of the worlds largest provider of ETF investment products, and now manages over $1 Trillion of assets for their investors. Vanguard is owned by its investors – it is a business that is not-for-profit (similar to a credit union) which means that the money they make through management fees is reinvested to make the funds better – and ultimately to actually enable Vanguard to lower future management fees! This special arrangement makes Vanguard one of the safest providers of ETFs in my opinion.
What index fund ETFs do Vanguard offer in Australia?
Vanguard offer a number of ETFs in Australia. These are split into a number of asset classes and markets, and also further sub-divided again into different ETFs within certain asset classes and markets.
Vanguards Fixed Interest and Bond ETFs in Australia
Fixed interest and Bond ETFs cover money markets and fixed interest (bond) contracts. These ETFs index funds essentially wrap up parcels of underlying holdings, i.e. the actual bonds, fixed interest contracts or bond funds, as per the index it is seeking to track.
Vanguard Australian Fixed Interest Fund ETF (ASX:VAF)
Vanguard Australian Fixed Interest Fund ETF (ASX:VAF) seeks to track the benchmark of the Bloomberg AusBond composite 0+ year index. This has a management fee of 10 basis points (.10%)
Vanguard Australian Government bond index fund ETF (ASX:VGB)
Vanguard Australian Government bond index fund (ASX:VGB) seeks to track the benchmark of the Bloomberg AusBond Govt 0+ year index. It has a management fee of .16% or 16 basis points.
Vanguard Australian Corporate Fixed Interest Index Fund ETF (ASX:VACF)
Vanguard Australian Corporate Fixed Interest Index Fund (VAS:VACF) tracks the Bloomberg AusBond credit 0+ year index. It has a Management Expense Ratio of 20 basis points or .20%
Vanguard Global Aggregate Bond Index Fund (Hedged) ETF (ASX:VBND)
Vanguard Global Aggregate Bond Index Fund (Hedged) ETF (ASX:VBND) tracks the Bloomberg Barclays Global Aggregate float adjusted and scaled index, hedged into Australian dollars. It has a management fee of .20% or 20 basis points.
Vanguard International Fixed Interest Index Fund (Hedged) ETF (ASX:VIF)
Vanguard International Fixed Interest Index Fund (Hedged) (ASX:VIF) tracks the Bloomberg Barclays Global Treasury Scaled index hedged into Australian dollars. It has a management fee of .20%.
Vanguard International Credit Securities Index Fund (Hedged) (ASX:VCF)
Vanguard International Credit Securities Index Fund (Hedged) (ASX:VCF) tracks the Bloomberg Barclays Global aggregate corporate and government related scaled index hedged into Australian Dollars. It has a management fee of .30%.
Vanguard Ethically Conscious Global Aggregate Bond Index Fund (ASX:VEFI)
Vanguard Ethically Conscious Global Aggregate Bond Index Fund (ASX:VEFI) tracks the Bloomberg Barclays MSCI global aggregate SRI exclusion float adjusted hedged into AUD index. It has a management fee of .26%.
Vanguards Property ETFs in Australia
Vanguard also has ETFs that trade underlying shares of property and property portfolios through Real Estate Investment Trusts.
Vanguard Australian Property Securities Index Fund (ASX:VAP)
Vanguard Australian Property Securities Index Fund (ASX:VAP) tracks the Standards and Poors ASX 300 A-REIT index (Australian real estate investment trust). The management fee is .23%.
One of Vanguards core offerings in Australia is its Australian shares ETFs, this is probably its most popular and widely understood financial product that it offers as an Australian ETF.
Vanguard Australian Shares Index Fund (ASX:VAS) tracks the Standards and Poors ASX 300 index (top 300 companies by market cap). It has a management fee of 0.07%.
Vanguard Australian Shares High Yield Fund (ASX:VHY) tracks the FTSE Australia High dividend yield index, with a management fee of .25%.
Vanguard MSCI Australian Large Companies Index ETF (ASX:VLC)
Vanguard MSCI Australian Large Companies Index ETF (ASX:VLC) tracks the MSCI Australian shares large cap index. It costs .20% MER.
Vanguard MSCI Australian Small Companies Index ETF (ASX:VSO)
Vanguard MSCI Australian Small Companies Index ETF (ASX:VSO) seeks to track the MSCI Australian Shares Small Cap Index. With a MER of .30%, it’s one of the more expensive ETFs.
Vanguard offer a number of international share ETFs through the Australian Securities Exchange. These can be bought or traded like any other Australian share, however they can be domiciled overseas meaning there may be some extra paperwork come tax time for your accounting.
Vanguard International Shares Index Fund (ASX:VGS) tracks the MSCI world ex-Australia (with net dividends reinvested) in Australian dollars index. The MER is .18%.
Vanguard International Shares Index Fund (Hedged) (ASX:VGAD) tracks the MSCI world ex-Australia (with net dividends reinvested), hedged into AUD index. The management fee is .21%.
Vanguard Ethically Conscious International Shares Index Fund (ASX:VESG) tracks the FTSE developed ex Australia ex non-renewable energy/Vice products/Weapons in Australian dollars. It has a management fee of .18%.
Vanguard Emerging Markets Shares Index Fund (ASX:VGE) tracks the MSCI emerging markets index (with net dividends reinvested) in AUD. It has a whopper of a MER at .48%!
Vanguard International Small Companies Index Fund (ASX: VISM)
Vanguard International Small Companies Index Fund (ASX:VISM) tracks the MSCI world ex-Australia small cap index, with a MER of .32%.
Vanguard All-World ex-US Shares Index ETF (ASX:VEU) tracks the FTSE all world ex US index. Its MER is .07%.
Vanguard US Total Market Shares Index ETF (ASX:VTS) tracks the CRSP US total Market Index (approx 3500 stocks) and with a MER of .03% it is one of (if not the) cheapest ETFs on the market.
Vanguard FTSE Europe Shares ETF (ASX:VEQ) tracks the FTSE developed Europe all cap index (with net dividends reinvested) in Australian dollars. It has a MER of .35%.
Vanguard FTSE Asia ex Japan Shares Index ETF (ASX:VAE) tracks the FTSE Asia Pacific ex Japan, Australia and New Zealand net index in Australian Dollars. It has a MER of .40%.
Vanguard Global Minimum Volatility Fund (ASX:VMIN)
Vanguard Global Minimum Volatility Fund (ASX:VMIN) tracks the FTSE global all cap index (AUD hedged). It has a MER of .28%.
Vanguard Global Value Equity Fund (ASX:VVLU)
Vanguard Global Value Equity Fund (ASX:VVLU) tracks the FTSE Developed all-cap in Australian dollars index.
Vanguards Infrastructure fund ETFs in Australia
Infrastructure funds are funds which provide access to investments in infrastructure securities listed in developed countries; this exposes investors to infrastructure stocks like transportation, communications, and energy stocks.
Vanguard Global Infrastructure Index Fund (ASX: VBLD)
Vanguard Global Infrastructure Index Fund (ASX:VBLD) tracks the FTSE developed core infrastructure index. It has a MER of .47%.
Vanguards Diversified fund ETFs in Australia
One of Vanguard’s newer offerings is its diversified funds. These are pretty awesome ETFs available to Australian investors on the ASX, and seek to provide an ETF product with a level of risk that suits a range of investment styles and needs.
The following diversified fund ETFs offer a range of portfolio asset allocation between income assets (cash, fixed interest and bonds) and growth assets (Australian and Global stocks)
Vanguard Diversified Conservative Index Fund (ASX:VDCO)
Vanguard Diversified Conservative Index Fund (ASX:VDCO) tracks Vanguard’s Conservative Composite Index, with a MER of .27%.
The Vanguard Conservative Composite Index targets 70% income to 30% growth asset allocation.
Vanguard Diversified Balanced Index Fund (ASX:VDBA)
Vanguard Diversified Balanced Index Fund (ASX:VDBA) tracks Vanguard’s Balanced Composite Index, with a MER of .27%.
The Vanguard Balanced composite Index seeks a 50:50 split between income and growth asset classes.
Vanguard Diversified Growth Index Fund (ASX:VDGR)
Vanguard Diversified Growth Index Fund (ASX:VDGR) tracks Vanguard’s Growth Composite Index. It has a MER of .27%.
Vanguard’s Growth Composite Index seeks to allocate 30% income assets to 70% growth assets.
Vanguard Diversified High Growth Index Fund (ASX:VDHG)
Vanguard Diversified High Growth Index Fund (ASX:VDHG) tracks the Vanguard High Growth Composite Index, with a MER of .27%.
Vanguard’s High Growth Composite index seeks to allocate 10% to income assets, and 90% to growth assets.
Summary of Vanguard ETFs in Australia
Vanguard are a leading provider of ETFs in Australia and as you have seen, they have a broad array of investment options available for Australian Investors. In my opinion, index or ETF investing is the smartest way to hold assets as you get instant diversification and remove individual company risk. Vanguard allows investors to choose a particular asset, market, and sub-market and still have the protection, liquidity and diversification of an Exchange Traded Fund.
Financial Disclaimer
Financial Disclaimer: CaptainFI is NOT a financial advisor and does not hold an AFSL. This is not financial Advice!
I am not a financial adviser and I do not hold an Australian Financial Services Licence (AFSL). In this article, I am giving you factual, balanced information without judgment or bias, to the best of my ability. I am not giving you any general or personal financial advice about what you should do with your investments. Just because I do something with my money (or use a particular service or platform) doesn’t mean it is automatically appropriate for your personal circumstances. I do not recommend nor endorse any financial or investment product, and my usage or opinion of any product should not be interpreted as an endorsement, advertisement, or intent to influence.
I can only provide factual information based on my journey to Financial Independence, and that is provided for general informational and entertainment purposes only. I make no guarantee about the performance of any product, and although I strive to keep the information accurate and updated as it changes, I make no guarantee about the correctness of reviews or information posted.
Remember – you always need to do your own independent research and due diligence before making any transaction. This includes reading and analysing Product Disclosure Statements, Terms and Conditions, Service Arrangement and Fee Structures. It is always smart to compare products and discuss them, but ultimately you need to take responsibility for your use of any particular product and make sure it suits your personal circumstances. If you need help and would like to obtain personal financial advice about which investment options or platforms may be right for you, please talk to a licensed financial adviser or AFSL holder – you can take the first steps to find a financial advisor by reading this interview, or by visiting the ASIC financial adviser register and searching in your area.
For more information please read my Privacy Policy, Terms of Use, and Financial Disclaimer.
Captain FI is a Retired Pilot who lives in Adelaide, South Australia. He is passionate about Financial Independence and writes about Personal Finance and his journey to reach FI at 29, allowing him to retire at 30.
