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Difference between VDHG and VAS?
Investing Strategy
Hi Brains Trust! What's the difference between VDHG and VAS? I understand they are setup quite differently. But to a lay person, I can't tell whether there is any material difference in the end. They're both High Growth, do relatively well and track against the ASX200.
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Andy Y
Asked on 25 July 2022
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Hi Andy, great question. These two funds are quite different, even though both are classed as ‘high growth’.
VAS is a purely Australian index fund, which invests in the top 300 companies in Australia (the ASX 300).
VDHG is a globally diversified fund, which invests in the top 300 companies in Australia (with about 35% of the fund), and the rest of the fund is invested in thousands of other companies from around the globe (developed markets and emerging markets, so think Apple, Amazon, Nestle, etc). In addition to this, VDHG also has 10% invested in fixed interest, which is basically bonds and other interest bearing securities.
Overall, the key difference of investing in one over the other is what an investor is trying to achieve with this holding. If they’re just looking for an Australian-only index fund, then VAS fits the bill. But if they want a globally diversified fund with everything in one ETF, then VDHG will do that job.
You can find more information about both on the Vanguard website, including the number of holdings, the sector breakdowns, and for VDHG, the country breakdowns…
VAS: https://www.vanguard.com.au/adviser/products/...
VDHG: https://www.vanguard.com.au/adviser/products/...
Hope that helps :)
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