VAS becomes first Australian ETF to surpass $20 billion

By Vanguard

ETFs

 

Another milestone for Australia’s largest ETF

The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia’s largest exchange-traded fund — and last month it became the first Australian ETF to exceed $20 billion in funds under management.

The milestone highlights the growing popularity of low-cost, index-based investing in Australia.

Since 2020, VAS has quadrupled in size — from $4.9 billion in January that year — reflecting both strong market performance and a surge in investor interest for ETFs.

Launched in 2009, VAS offers exposure to the top 300 companies listed on the Australian Stock Exchange (ASX), with a management fee of just 0.07% each year. That works out to just 70 cents each year for every $1,000 invested.

The growing interest in VAS reflects a broader trend, with ETFs transforming the investment landscape across the country. Australian investors are increasingly turning to low-cost ETFs — and VAS in particular — which offer transparent, diversified, and easy access to range of asset classes.

Vanguard is Australia’s number one provider of ETFs, with $74.6 billion of ETF assets under management as of 31 May. In April alone, Vanguard had $1.8 billion of net inflows to its ETF products, the highest month of net inflows on record.

 

How multiple ETFs can help diversify your portfolio

Many Australian investor portfolios have a “home country bias” where they are overinvested in Australian equities relative to a diversified portfolio.

One way to reduce home country bias and boost your portfolio’s diversification is to invest in both Australian and international shares.

Many Vanguard investors pair VAS with the Vanguard MSCI Index International Shares ETF (ASX: VGS) to create a well-diversified, low-cost portfolio of Australian and international shares.

VGS is Australia’s second largest ETF, with over $11.2 billion in assets under management as of 31 May. It provides exposure to around 1,300 securities from developed international markets, including some of the world’s largest and most-well-known companies (NVIDIA, Microsoft, Apple, Google).

Another way some investors choose to diversify their portfolios is by adding fixed income investments. Two of Vanguard’s more popular ETFs in this asset class are the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and the Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX:VBND).

Because different asset classes perform differently in different years, having a diversified mix of investments, appropriate for your goals and risk appetite, can help you weather the ups and downs of markets.

To learn more about Vanguard’s ETF offerings, visit the Vanguard website.

 

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