Why Vanguard MSCI Australian Small Companies Index ETF (ASX:VSO) is an exciting ETF to consider

I think that Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) is an exciting ETF to consider for investors looking for a big more growth.

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.

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Why to consider Vanguard MSCI Australian Small Companies Index ETF

It’s one of the more expensive ETFs offered by Vanguard, though its management fee is still pretty low at 0.30% per year.

Why does it charge more? Because of the different ASX shares that it provides exposure to. ASX blue chips aren’t a bad option, but growth will create better returns over the longer term.

What are some of the shares it’s invested in?

The name of the ETF is ‘small’ but the bigger businesses in the ETF are not that small, but still have good growth potential.

Those top 10 holdings are: Northern Star Resources (ASX: NST), Evolution Mining (ASX: EVN), Afterpay (ASX: APT), Atlas Arteria (ASX: ALX), Saracen Mineral Holdings (ASX: SAR), Altium (ASX: ALU), JB Hi-Fi (ASX: JBH), Nextdc (ASX: NXT), Ansell (ASX: ANN) and Cleanaway Waste Management (ASX: CWY).

Gold mining companies are doing pretty well right now because of economic fears due to COVID-19. Technology shares like Afterpay, Altium and Nextdc are some of the more popular growth share options on the ASX.

The Vanguard MSCI Australian Small Companies Index ETF is actually invested in a total of 170 shares, so it offers plenty of diversification.

A decent dividend yield

Smaller growth shares are known for their capital growth. But this ETF actually has a trailing dividend yield of 3.56%, so it has the potential to deliver decent income when the economy returns to normal from COVID-19. Or at least a new normal, whatever that looks like.

However, if you just want technology growth shares it might be better to go for BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC).

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.

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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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