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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1 Introduction to Vanguard
2 What index fund ETFs do Vanguard offer in Australia
3 Summary of Vanguard ETFs in Australia
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. There 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. As of 31 Mar 20, the 1, 3 and 5 year returns have been respectively 6.67%, 5.58% and 4.09%. This has a management fee of 20 basis points (.2%)
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. As of 31 Mar 20, its 1,3 and 5 year returns have been 7.35%, 5.92% and 4.19%. It has a management fee of .20% or 20 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. The 1 and 3 year returns for this ETF has been 4.51% and 4.79% respectively as of 31 Mar 20 , with a Management Expense Ratio of 26 basis points or .26%
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. As of 31 Mar 20 The one year return has been 5.38%, with 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. As of 31 Mar 20 its 1 and 3 year returns have been 7.03% and 4.75% respectively, with 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. As of 31 March 20, its 1 and 3 year returns have been 2.02% and 3.17% respectively, with 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. Its one year return (as of March 2020) was 5.63%, costing a management fee of .26%.
Vanguards Property ETFs in Australia
Vanguard also ETFs which trade underlying shares of property and property portfolios, through the use of 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). Its one year return is -31.39% (OUCH), 3 year return is -4.88% and 5 year return is .39% (as of March 2020). 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 10 basis points, and as of March 2020 its 1, 3 and 5 year returns have been -14.58%, -.69% and 1.28% [thanks to the market correction].
Vanguard Australian Shares High Yield Fund (ASX:VHY) tracks the FTSE Australia High dividend yield index. With a management fee of .25%, VHY’s 1, 3 and 5 year returns (as of March 2020) have been -18.11%, -4.26% and -2.06%.
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, and its 1, 3 and 5 year returns as of March 2020 are -12.73%, -.8% and .12%.
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 .3%, its one of the more expensive ETFs, and as of March 20 its 1,3 and 5 year returns are -21.24%, -1.81% and 1.84%.
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. As of March 2020, the 1, 3 and 5 year returns have been 4.56%, 10.05% and 8.21%. 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. Its 1,3 and 5 year returns have been -10.98%, 1.72% and 3.89% (as of March 2020). 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. The one year return as of March 2020 is 8.48%, with 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 .56% and its 1,3 and 5 year returns are -4.86%, 5.37% and 3.7% respectively (as of March 2020)
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%, its one year return (as of March 2020) was -9.63%
Vanguard All-World ex-US Shares Index ETF (ASX:VEU) tracks the FTSE all world ex US index. Its MER is .08% and as of March 20 its 1, 3 and 5 year returns are -2.25%, 5.33% and 4.01% respectively.
Vanguard US Total Market Shares Index ETF (ASX:VTS) tracks he CRSP US total Market Index (approx 3500 stocks) with a MER of .03% it is one of (if not the) cheapest ETFs on the market, and its 1, 3 and 5 year returns as of March 2020 are 5.32%, 11.91% and 10.53%.
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% and its 1 and 3 year returns as of March 2020 are -3.64% and 4.17%.
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 .4% and its 1 and 3 year returns have been -.46% and 7.44% as of March 2020.
Vanguard Global Multi-Factor Fund (ASX:VGMF)
Vanguard Global Multi-Factor Fund (ASX:VGMF) tracks the FTSE developed all-cap in Australian dollars index. It has a MER of .33% and you will need to consult Vanguards website for performance details
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% and its one year return as of March 20 was -9.08%.
Vanguard Global Value Equity Fund (ASX:VVLU)
Vanguard Global Value Equity Fund (ASX:VVLU) tracks the FTSE Developed all-cap in australian dollars index. It has a MER of .28% and as of March 2020 its one year return was -22.52% (OUCH!)
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. With a MER of .47%, the VBLD has aone year return of 5.45% as of March 2020.
Vanguards Diversified fund ETFs in Australia
One of Vanguards newer offering 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 Vanguards Conservative Composite Index. With a MER of .27%, as of March 2020 its 1 year return was 1.42%.
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 Vanguards Balanced Composite Index, with a MER of .27%, as of March 2020 its 1 year return was -.85%.
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 Vanguards Growth Composite Index. With a MER of .27%, as of March 2020 its one year return was -3.5%.
Vanguards 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% its March 2020 one year return was -6.14%.
Vanguards 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 allow investors to choose a particular asset, market, and sub-market and still have the protection, liquidity and diversification of an Exchange Traded Fund.
