How ASX investors can use the VDGR ETF
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.
VDGR meets our minimum market cap (FUM) criteria
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.
VDGR ETF fees explained
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.
Putting it all together
If you’re weighing up investing in VDGR, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free Vanguard VDGR report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Diversified ETF sector to compare your options.
