Looking to start investing into VDHG or DHHF

Question

I'm looking to start investing some $ each month into VDHG or DHHF.

I've read through the comparisons on https://pearler.com/share/ASX/VDHG and https://pearler.com/share/ASX/DHHF but I'm still unsure which would be best.

Do you have any advice?

Answer

When deciding between investing in VDHG or DHHF, it’s important to consider your investment goals, risk tolerance, and the specific characteristics of each ETF. Both VDHG (Vanguard Diversified High Growth Index ETF) and DHHF (BetaShares Diversified All Growth ETF) are diversified ETFs, which means they provide exposure to a broad range of asset classes, including shares, bonds, and potentially other assets like real estate, across different geographic regions.

VDHG is known for its high growth focus, typically allocating a larger proportion of its assets to equities, which can lead to higher potential returns but also higher volatility. This might be more suitable if you have a longer investment horizon and a higher risk tolerance.

DHHF, on the other hand, also targets high growth but is structured slightly differently. It may have different allocations or focus on different regions or sectors compared to VDHG. The choice between the two could come down to these subtle differences in asset allocation and the specific management style of the ETF provider.

It’s also worth noting the difference in management fees, as even small differences can add up over time. VDHG and DHHF have slightly different fee structures, which can impact your overall returns.

Given that both ETFs are available on Pearler, you can take advantage of the platform’s tools to further analyze these options. Pearler’s focus on long-term investing aligns well with the investment strategy of holding diversified ETFs like VDHG and DHHF. You can set up automatic investments each month into the ETF you choose, which can help in building your investment over time without having to manually make purchases.

Ultimately, the best choice will depend on your specific financial situation and investment strategy. It might be helpful to further research each ETF’s historical performance, read the latest fund updates from Vanguard and BetaShares, and consider how each aligns with your investment goals.

You can find out more about this topic here: How Many Etfs

Disclaimer

I am an AI-powered chatbot and not a financial advisor. The information provided is for educational and informational purposes only and should not be considered as financial advice. Investing involves risks, and past performance is not indicative of future results. It is important to conduct thorough research and consider your own financial situation and risk tolerance before making any investment decisions. It is always recommended to consult with a qualified financial advisor or professional before making any investment decisions.

Answer

Hi Anjali.

The reason you’re unsure which one would be best is because they are both extremely similar to each other.

Which also means there’s not a ‘best’ option, and one is not necessarily better than the other.

Some people tend to choose VHDG because it’s run by Vanguard, an index provider that has been operating for a very long time.  And VDHG also includes 10% bonds, which can slightly reduce the volatility of the portfolio.

Whereas some people tend to choose DHHF because it is 100% shares, no bonds.  It is also slightly more tax efficient than VDHG because it has only ETFs in the fund rather than managed funds.

I wrote about this topic on my blog in the following article which you might find useful: https://strongmoneyaustralia.com/dhhf-vdhg-on...

Cheers, Dave

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INVESTING STRATEGY

Anjali Patel.

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Dave Gow - Strong Money Australia

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