How ASX investors can use the VDHG ETF
The Vanguard VDHG ETF provides investors with exposure to a portfolio of other Vanguard funds. Meaning, since the VDHG ETF invests in other shares, bond or cash ETFs, it gives you exposure to multiple asset classes with a single investment. In this way, VDHG is designed to be a diversified portfolio by itself.
The VDHG ETF might be used by investors who are wanting a simple way to establish a diversified portfolio with an aggressive weighting towards growth assets. This ETF may suit investors with a high risk tolerance, a long investment time-frame, and a focus on capital growth over income. Vanguard offers a range of other diversified ETFs, including a balanced ETF (VDBA).
VDHG meets our minimum market cap (FUM) criteria
The Vanguard VDHG ETF had $1737.58 million of money invested when we last pulled the monthly numbers. Given VDHG’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the Diversified ETF sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
VDHG ETF fees explained
Vanguard charges investors a yearly management fee of 0.27% for the VDHG ETF. This means that if you invested $2,000 in VDHG for a full year, you could expect to pay management fees of around $5.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Putting it all together
If you’re weighing up investing in VDHG, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Vanguard VDHG report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Diversified ETF sector to compare your options.