DHHF vs VDHG

Hey Julian, what a spicy 🌶 question.

First up: my response here is strictly general in nature, so it does not relate to your financial circumstances, goals or objectives. A qualified financial adviser can help you with that (you can find one on the Moneysmart website). The Rask Group Pty Ltd’s financial services guide (FSG) is available on our website. I’d encourage you to read that before continuing with my comment. Also, I know you know this (but for others reading this after you) please ensure you read an ETF’s Product Disclosure Statement (PDS) before investing.

Now that that’s done. The spicy bit.

You have done an excellent job identifying the tax implications and long-term philosophies of Vanguard and Betashares, and how they differ. I agree with much of what you said in that with diversified ETFs there is no ‘one size fits all’ because there are different tax implications, holding structures, philosophies, and so on to consider. Tax drag becomes a bigger issue as an investor’s marginal tax rate goes up and, typically, this occurs at the same time as the balance of an investment goes up — a double-whammy. This is why some older investors still prefer LICs or direct shares (where tax issues are more deliberate).

💡 Philosophy 💡

For me, Vanguard wins hands down here. Having been to their offices, spoken with numerous Vanguard personnel and researched them over the years, there is no doubt in my mind that Vanguard is true to label: low costs, simplicity, transparency. Basically, putting members/investors first. The way this works in practice is I believe Vanguard will continue to lower its fees over time, choose products and strategies that will result in lower turnover (good for tax), and drive better outcomes for investors.

Conversely [insert axe to grind 🪓] I’ve been disappointed by some of the ‘niche’ or thematic ETFs (e.g. CRYP) offered by Betashares and the poor levels of disclosure in

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Hi Julian, I have invested in both DHHF/VDHG in the past but have since divested (I too much prefer Vanguard’s Bogle ethics). I found tax-time too onerous to deal with all the machinations of those huge products. Yes, guilty of tinkering.

For the past few years I have just autoinvested ~⁴⁹⁄₄₈% on VAS/VGS. To satisfy my tinkering I also have ~3% in GOLD (was also 5% IAF/IEM but that was too depressing) which makes me feel better when all the markets are crashing. No idea if it’s a smart plan but it works for me if only to simplify my tax.