Is VDHG ETF the best ASX investment for millennials?

Vanguard Diversified High Growth Index ETF (ASX: VDHG) could be the best exchange-traded fund (ETF) for millennial investors to choose.

I’m not the biggest fan of the term millennials, but it encapsulates the age group that this ETF is really well suited for.

What is VDHG ETF?

It’s about giving investors low-cost access to a range of sector funds, offering a lot of diversification across many asset classes.

The cost is indeed very low. It has an annual management fee of 0.27%, which is very cheap for how much underlying diversification you get with this investment.

It’s invested across a number of other index funds:

Australian shares

International shares

International shares (currency hedged)

International small companies

Emerging market shares

Global bonds

Australian bonds

Most of the VDHG ETF is invested in growth assets, with around three quarters invested in the first three index funds (Australia, international and international hedged).

Why it’s such a good option for millennials

There are a number of great reasons to consider shares, which this ETF offers a lot of.

Diversification – Having all your money tied up in one property in one location isn’t diversified. But this ETF gives an abundance of diversification through all of the different index funds.

Low fees – It’s cheaper than most fund managers. And it certainly doesn’t come with the expensive property fees like stamp duty, real estate agent selling commissions, ownership fees and so on.

Timesaver – If you take the long-term approach with VDHG, it hardly takes any time at all. The initial investment and then just the annual tax return (which can be pre-filled). Easy!

Good returns – Obviously, the most important thing about investing is the returns. Over the last three years it has produced an average return per annum of 10.6%. That’s not the best ever, but considering it’s so diversified I think it has been a solid return.

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".

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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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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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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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