The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). In this article, we’ll provide a quick review of the VDHG ETF.
1. Exposure
The Vanguard VDHG 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.
2. Funds under management (FUM)
The Vanguard VDHG ETF had $441.59 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.
3. Management fees & costs matter
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 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the VDHG ETF. If you’re looking to do some further digging, be sure to read our Vanguard VDHG report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
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