VDHG is lower risk comprising an almost fully diversified portfolio including fixed interest and bonds. You do not need to worry about balancing - it is an all in one investment solution. VAS + VGS is 100% equities (no bonds / fixed interest) and with 60% ASX it has a higher risk (and return) profile.
What makes VDHG so special? The VDHG ETF provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. It's an all-in-one option for people who don't want to try to decide their own levels of which ETF to own.
VDHG is a diversified ETF that is comprised of seven different ETFs that track multiple markets and assets. An ETF is firstly a fund (the 'F'), and therefore holds multiple assets in it. Secondly, it is exchange traded (the 'ET'), meaning that you can buy and sell the same ways as with shares via a stockbroker.
This ETF is an all-in-one type investment that gives you exposure to different asset classes. It has around 35.6% invested in Australian shares, 26.7% invested in international shares, 16.3% invested in a hedged international shares fund, 6.6% in small international companies and 4.8% in emerging markets.
The VDHG ETF invests in a range of other wholesale and retail Vanguard funds, giving investors exposure to both equities and fixed interest securities with a single purchase. This high growth ETF has an aggressive target weighting of 90% growth assets and 10% income assets.
Yep you do. You will see the breakdown of the franking credits from your annual tax statement. When you do your tax return you plug in the info then.
The Distribution Reinvestment Plan (DRP) is available for the VDHG ETF.
One 'set and forget' fund for your portfolio is Vanguard Diversified High Growth Index ETF (ASX: VDHG). This Vanguard fund was established to give passive investors the capital growth they wanted in a fully diversified vehicle. VDHG is essentially a fund of other wholesale Vanguard funds.
The BetaShares DGGF ETF provides investors with a diversified portfolio of ethical assets, including shares and bonds, by screening out unethical industries and giving preference to sustainable companies.
Is VDHG an index fund? Yes. VDHG is a diversified index ETF which itself holds seven index fund ETFs across the asset classes of Australian and international shares, bond and fixed interests.
You can buy direct from Vanguard; they have a Retail option (with high fees) and a Wholesale option (with a huge minimum purchase, $500,000). For most people, buying the ETF through your broker (CommSec, SelfWealth, or whatever) will be a better deal.
Vanguard ETFs like VAS and VAP do have franking credits associated with them as well as capital gains and small amount of foreign income. Vanguard states you should wait for the end of year tax Summary and not to use these estimates for completing your tax.
It is domiciled in both Australia and international markets, which can create paperwork and estate complications. VTS is a cross-listing of Vanguard's US-listed Vanguard Total Stock Market ETF VTI, which it has managed since 2001.
In the second half of 2018 this fund was converted into an Australian domiciled iShares ETF, removing the need to complete U.S. tax forms known as “W-8BEN” forms.
The Management Expense Ratio (MER) represents the combined total of the management fee, operating expenses and taxes charged to a fund during a given year expressed as a percentage of a fund's average net assets for that year. All mutual funds have an MER.
