A Focus on Low-Cost Investing
The ETF provider explains the benefits of lower fees and how it's able to provide its cheap service:
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Are There Any Other Cheaper ETFs?
The Vanguard Australian Shares Index ETF is certainly one of the lowest on the ASX.
But, there are a couple of ASX ETFs that are noticeably cheaper.
For example, there's the iShares S&P 500 ETF (ASX: IVV) which has an annual management fee of 0.04%.
This investment gives investors access to 500 of the biggest US-listed businesses.
A Vanguard offeri.
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Is vas a good investment?
These are mostly large and established Australian companies.
It is a popular choice among passive individual investors who don't have the time or the expertise to actively invest in stocks.
VAS has one of the lowest management fees in the ASX.
It also has a high average dividend yield of 4.2%.
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Vanguard Australian Shares Index ETF Management Fee
As of October 2022, the ETF charges investors an annual management fee of 0.10% per annum.
There are 0% indirect costs.
In terms of investing in ASX shares, it isn't the cheapest ETF out there.
I'm thinking about the BetaShares Australia 200 ETF (ASX: A200).
It has a management fee of just 0.07% per annum.
That's slightly cheaper than Vanguard, tho.
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What is a vas ETF?
VAS tracks the S&P / ASX 300, delivering low-cost exposure to the top 300 companies on the Australian share market.
This ETF offers broad exposure to Australian equities in a single purchase.
As one of the most traded ETFs in Australia, VAS is highly liquid and offers extremely tight trading spreads, reducing the cost of transacting.
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When does Vanguard's fee change start?
The fee change will be effective from July 3 and follows a periodic review of Vanguard's pricing and funds. "At Vanguard we regularly assess our product offer against our commitment to deliver low-cost, high-quality products that are best in class," it said.
At the end of May, VAS returned 8.02% p.a. on a 10-year period.
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Why should you buy Vas & VGS?
Both VAS and VGS have long track records of competitive performance and consistently tracking well-known, quality indexes.
VAS tracks the S&P / ASX 300, delivering low-cost exposure to the top 300 companies on the Australian share market.
This ETF offers broad exposure to Australian equities in a single purchase.