Differences between the DHHF and VDHG ETFs?

Certainly! When comparing the DHHF and VDHG ETFs, it’s important to understand their investment strategies, asset allocation, and how they might fit into a long-term growth portfolio.

DHHF (BetaShares Diversified All Growth ETF):
– Investment Strategy: DHHF is designed to provide investors with exposure to a diversified portfolio of growth assets across global markets. It is an all-equity ETF, meaning it invests 100% in equities.
– Asset Allocation: The fund invests across Australian and international shares, including emerging markets. It does not hold bonds or other fixed-income assets, which positions it as a higher-risk, higher-potential-return investment compared to mixed-asset ETFs.
– Suitability for Long-Term Growth: Given its all-equity strategy, DHHF is suitable for investors who have a high risk tolerance and a long investment horizon. The lack of fixed-income assets means it may experience higher volatility, but potentially offers higher returns over the long term.

VDHG (Vanguard Diversified High Growth ETF):
– Investment Strategy: VDHG aims to provide long-term capital growth through a diversified portfolio that includes a mix of asset classes. It targets a high allocation to equities but also includes bonds and other income-generating assets.
– Asset Allocation: VDHG typically allocates around 90% to equities (including Australian, international, and emerging markets) and 10% to fixed-income assets like bonds. This mix allows for high growth potential with a slight moderation of risk through the inclusion of bonds.
– Suitability for Long-Term Growth: VDHG is designed for investors seeking substantial capital growth with a slightly lower risk profile than an all-equity ETF. The inclusion of bonds helps to buffer against market volatility, making it more suitable for those seeking balanced growth with moderate risk.

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Hi Ruby,

They’re both incredibly similar.

The strategies are basically the same (whole world share markets covered with basically the same allocations of around 35-40% Aussie shares, the rest international), both high growth options. Both costing around 0.2-0.3% in fees.

The main difference is VDHG has 10% fixed interest in its portfolio which makes it slightly lower risk and possibly slightly lower return. But the differences are pretty negligible between the two to be perfectly fair.