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(but still make lots of money)?

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3 reasons why Vanguard Diversified High Growth Index ETF (VDHG) could be worth owning

Vanguard Diversified High Growth Index ETF (ASX: VDHG) is a popular exchange-traded fund (ETF).

What is Vanguard?

Vanguard is a funds management business that is owned by its own investors. It was founded in 1975 and now has (or had) around AU$9.7 billion. It has 192 funds in the US, and 232 funds in markets outside the US. It’s a world leader in providing low cost ETFs.

What makes Vanguard Diversified High Growth Index ETF so special?

The 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.

The ETF targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes. At the end of April the allocations were:

Vanguard Australian Shares Index Fund (Wholesale) 37.0%
Vanguard International Shares Index Fund (Wholesale) 25.9%
Vanguard International Shares Index Fund (Hedged) – AUD Class (Wholesale) 15.7%
Vanguard Global Aggregate Bond Index Fund (Hedged) 6.9%
Vanguard International Small Companies Index Fund (Wholesale) 6.5%
Vanguard Emerging Markets Shares Index Fund (Wholesale) 4.9%
Vanguard Australian Fixed Interest Index Fund (Wholesale) 3.1%

3 Reasons why it could be a good idea to own:

Diversified – There’s always a risk when investing that you put too many eggs in one basket. Particularly if you invest in individual businesses. What happens if half your portfolio is in one business and it goes bust? Not only is this ETF invested in seven underlying ETF, but each of those ETFs are invested in loads of shares themselves. The allocation to bonds is also useful to lower volatility. However, considering the ASX is only a small part of the global index, some people may say it’s invested too much in Australian businesses, particularly financial and resource shares.

Growth focused – Plenty of investments within the Vanguard Diversified High Growth Index ETF are growth focused, hence the name. Being invested in growth is probably the best way to grow your wealth over the long term. The returns offered by bonds (and cash) are so low these days with central banks trying to stimulate the economy. Shares have proven to create the best returns over the long term.

Takes the guesswork out of things – Investing in one share ETF alone takes plenty of the investing guesswork out of things for a regular investor. Choosing this all-in-one option can be a clever way to make your investments very automated.

Disclosure: Jaz does not own shares of any of the shares mentioned at the time of writing.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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