What is the VDGR ETF used for?
The Vanguard VDGR ETF provides investors with exposure to a portfolio of other Vanguard funds. This ETF gives investors exposure to multiple asset classes with a single purchase, and is designed to be a diversified portfolio in itself.
The VDGR ETF might be used by investors who are wanting a simple way to establish a diversified portfolio with weightings geared towards growth assets. This ETF may suit investors with a higher risk tolerance who are less concernced with income and more interested in capital growth.
Keep an eye on FUM
The Vanguard VDGR ETF had $615.22 million of money invested when we last pulled the monthly numbers. Given VDGR’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.
Fees and costs for investors
Vanguard charges investors a yearly management fee of 0.27% for the VDGR ETF. This means that if you invested $2,000 in VDGR 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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the VDGR ETF. Before doing anything, take a look at our Vanguard VDGR report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
