2 reasons why VAS ETF could be the best way to invest in ASX shares

There are a few good reasons why Vanguard Australian Shares Index ETF (ASX: VAS) could be the best way to invest into ASX shares.

About VAS

VAS ETF looks to give investors exposure to the ASX 300. That’s 300 of the biggest businesses on the ASX.

The biggest companies in Australia are the largest holdings in the ETF. The biggest positions are: CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Woolworths Group Ltd (ASX: WOW).

The above names are all of Australia’s leading ASX blue chips. You get plenty of exposure to them with this ETF.

It has an annual management fee of 0.1% per year.

Other similar ETFs

There are other ETFs that are quite similar to the VAS ETF such as BetaShares Australia 200 ETF (ASX: A200) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) which track the ASX 200, which is quite similar to the ASX 300.

How has the ETF performed?

Source: Best ETFs VAS 10-year share price chart.

According to Vanguard, over the past decade the VAS ETF has made average returns of 7.6% per year. When you take dividends out of the return, the capital growth has only been around 3% per year.

2 reasons why VAS ETF could be the best way to invest in ASX shares

The VAS ETF has very low annual fees, which means you get a lot of diversification through a single investment for very low fees. That’s an attractive way to invest in ASX shares.

The main difference is that the VAS ETF tracks the ASX 300, whereas the other two major ASX ETFs track the ASX 200. The VAS ETFs gives exposure to 100 more businesses which have more growth potential, though the exposure is limited to small positions.

However, whilst I think VAS could be the best ETF to invest broadly in ASX shares, there are other ETFs I would prefer to buy like Betashares FTSE 100 ETF (ASX: F100).

But there are plenty of other ETFs out there for growth and/or dividends. Check out our list of ASX ETFs.

Investing: Don't leave it to chance. Get expert help.

Don't leave your investments to chance. The expert analysts at Rask Australia have just issued a fresh copy of their popular investment report "3 cloud stocks for the revolution" and it's easy to see why hundreds of Australians have already accessed the FREE report -- this month!

You can grab your free access to the analysts' report by creating a free Rask Australia account. Absolutely no credit card or payment details necessary! 

Just click here to get started.


Disclaimer: Any information contained in this article is limited to general financial advice/information only. The information should not be relied upon because it has not taken into account your specific needs, goals or objectives. Please, consult a licenced and trusted financial adviser before acting on the information. Past performance is no guarantee of future performance. Nothing in this article should be considered a guarantee. Investing is risky and can result in capital loss. This article is authorised by Owen Raszkiewicz of The Rask Group Pty Ltd. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.
feedback-icon

What can we do better? Please give us us some feedback :)

We care about your experience, please let us know if you have any suggestions to improve our site.