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Our Pick Of the Best Vanguard Funds of April 2024
Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.
| Vanguard ETF | Five-Year Total Return |
|---|---|
| Vanguard US Total Market Shares ETF (VTS) | 16.20% |
| Vanguard MSCI Intl ETF (VGS) | 14.19% |
| Vanguard MSCI Intl (Hedged) ETF (VGAD) | 11.25% |
| Vanguard Australian Shares High Yield ETF (VHY) | 10.47% |
| Vanguard Diversified High Growth ETF (VDHG) | 9.67% |
| Vanguard Australian Shares Index ETF (VAS) | 9.16% |
| Vanguard All-World ex-US Shares Index ETF (VEU) | 7.79% |
| Vanguard Australian Property Secs ETF (VAP) | 6.40% |
The Best Vanguard Funds Of September 2024
- Vanguard US Total Market Shares ETF (VTS)
- Vanguard MSCI Intl ETF (VGS)
- Vanguard MSCI Intl (Hedged) ETF (VGAD)
- Vanguard Australian Shares High Yield ETF (VHY)
- Vanguard Diversified High Growth ETF (VDHG)
- Vanguard Australian Shares Index ETF (VAS)
- Vanguard All-World ex-US Shares Index ETF (VEU)
- Vanguard Australian Property Secs ETF (VAP)
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Vanguard MSCI Intl ETF (VGS)
Expense Ratio
0.18%
Dividend Yield
1.55%
Five-Year Total Return (Price)
14.19%
Expense Ratio
0.18%
Dividend Yield
Five-Year Total Return (Price)
14.19%
Why We Picked It
The Vanguard MSCI Intl ETF (VGS) offers investors a convenient way to gain exposure to a broad range of international market equities from more than 20 countries, and was one of our top picks for best ETFs for Australians.
VGS has delivered solid returns, with a five-year total return (price) of 14.19% and an impressive one-year return of 30.04%. While the fund’s dividend yield of 1.55% is relatively low, it nevertheless provides an additional source of income for investors. The ETF’s $7.71 billion worth of AUM demonstrates its popularity among Australian investors.
By investing in VGS, investors can tap into the growth potential of developed markets, such as the United States, Europe, and Japan. This could potentially serve as a core international holding in a well-diversified investment portfolio.
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Vanguard MSCI Intl (Hedged) ETF (VGAD)
Expense Ratio
0.21%
Dividend Yield
1.74%
Five-Year Total Return
11.25%
Expense Ratio
0.21%
Dividend Yield
1.74%
Five-Year Total Return
11.25%
Why We Picked It
Similar to VGS, the Vanguard MSCI Intl (Hedged) ETF (VGAD) provides Australian investors with exposure to international, developed-market equities, with the added benefit of being structured to mitigate the impact of currency fluctuations. This is particularly appealing for investors concerned about the effects of foreign exchange on their international investments.
VGAD has delivered a five-year total return of 11.25% and a substantial one-year return of 26.24%. Similar to VGS, the dividend yield is nothing incredible at 1.74%, but the strong capital growth VGAD has experienced helps make up for this. The fund has $3.03 billion worth of AUM, highlighting its popularity.
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Vanguard Diversified High Growth ETF (VDHG)
Expense Ratio
Dividend Yield
2.57%
Five-Year Total Return
9.67%
Expense Ratio
0.27%
Dividend Yield
2.57%
Five-Year Total Return
9.67%
Why We Picked It
The Vanguard Diversified High Growth ETF (VDHG) is an all-in-one investment solution for Australian investors seeking a high-growth, diversified portfolio. The fund provides exposure to a mix of asset classes, including Australian and international equities, fixed interest, and cash.
VDHG has delivered a five-year total return of 9.67% and a one-year return (price) of 19.20%. The fund’s higher allocation to growth assets, such as equities, contributes to its strong performance over the long term. The fund’s reasonable dividend yield of 2.57% provides investors with a reliable income stream, while its assets under management (AUM) of $3.03 billion demonstrate its popularity among Australian investors seeking a simple, diversified investment solution.
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Vanguard Australian Property Secs ETF (VAP)
Expense Ratio
0.23%
Dividend Yield
3.59%
Five-Year Total Return
6.40%
Expense Ratio
0.23%
Dividend Yield
3.59%
Five-Year Total Return
6.40%
Why We Picked It
The Vanguard Australian Property Secs ETF (VAP) provides investors with exposure to a diversified portfolio of Australian Real Estate Investment Trusts (A-REITs) and property-related securities. With an expense ratio of 0.23%, VAP offers a cost-effective way to access the Australian property market.
One of the key attractions of VAP is its robust dividend yield of 3.59%, making it an appealing option for investors chasing regular income. VAP has delivered a five-year total return of 6.40%, which isn’t particularly ground-breaking. However, over the past year, it has delivered an impressive 35.33% return.
Methodology
To rank the top eight Vanguard funds for Australian investors in 2024, we used a multi-step process that considered key factors such as accessibility to Australian investors, long-term performance, dividend yield, and expense ratio.
First, we ranked all the Vanguard funds on the Australian Securities Exchange (ASX) based on their five-year total return, which indicates their long-term performance and ability to navigate various market conditions. This is particularly important for investors looking to build wealth over an extended period, which is a much safer route than trying to time the market for quick returns.
Next, we screened the top-performing funds for those with the highest trailing 12-month dividend yields. Dividend yield is a crucial consideration for many investors, as it provides a regular income stream and can signify a fund’s underlying financial strength and stability.
We also considered the expense ratios of the funds, preferring those with lower costs. Lower expense ratios can significantly impact long-term returns, as they allow more of the fund’s performance to be passed on to investors.
Finally, we checked the assets under management (AUM) of each fund, with a preference for larger funds. This indicates that the ETF is not only popular but also liquid enough that larger investors do not need to be concerned about slippage when buying or selling large quantities.
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Frequently Asked Questions (FAQs)
What is the best ETF to buy in Vanguard?
The best Vanguard ETF to buy depends on your investment goals, risk tolerance, and time horizon. However, the Vanguard US Total Market Shares ETF (VTS) stands out to us as a top choice for Australian investors when considering things like expense ratio, long-term track record and total assets under management (AUM).
VTS offers exposure to the entire US stock market at a low cost (expense ratio of 0.03%) and has delivered impressive returns, with a five-year total return (price) of 16.20%, a one-year return (price) of 34.56% and over $4 billion worth of AUM. Its low costs, broad diversification, and strong performance make it an attractive ETF to consider for long-term investment portfolios.
Which Vanguard ETFs pay dividends?
Many Vanguard ETFs pay dividends, with some offering particularly high dividend yields. The Vanguard Australian Shares Index ETF (VAS) has a high dividend yield of 6.67%, making it an attractive option for income-focused investors.
Other notable dividend-paying ETFs include the Vanguard Australian Shares High Yield ETF (VHY), with a yield of 4.84%, and the Vanguard Australian Property Secs ETF (VAP), with a yield of 3.59%. These ETFs allow investors to generate regular income from their investments while potentially benefiting from capital growth.
What Vanguard ETF could help retire a millionaire?
For a millionaire looking to retire, Vanguard ETFs with higher dividend yields could be an excellent choice to generate a reliable passive income stream that outpaces inflation. One strong option is the Vanguard Australian Shares Index ETF (VAS), which offers a substantial dividend yield of 6.67%. VHY provides cost-effective exposure to a diversified portfolio of high-yielding Australian companies, aiming to deliver capital growth and income over the long term.
Another attractive option is the Vanguard Australian Shares High Yield ETF (VHY), which boasts an impressive dividend yield of 4.84%. VAS is a core holding for many Australian investors, providing low-cost, diversified exposure to companies listed on the Australian Securities Exchange (ASX). By focusing on high-yielding Vanguard ETFs like VHY and VAS, millionaire retirees can potentially generate a stable and growing passive income stream to support their retirement lifestyle, while considering their risk tolerance, investment timeline, and overall portfolio diversification.
Of course, nothing is certain in the world of investing, and it’s important to do your own research first to ensure the ETF is right for you.
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Patrick McGimpseyContributor
Patrick McGimpsey is a freelance writer passionate about crypto and its impact on the financial world. Currently working as the content lead for Australian startup CryptoTaxCalculator, Patrick has also covered the crypto industry for Canstar and The Chainsaw. Patrick has over seven years of experience in the crypto space and has previously shared his knowledge with the AML and fraud departments of Australian financial Institutions.
