Is Vanguard Australian Shares Index ETF (VAS) the best option for ASX diversification?

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Is Vanguard Australian Shares Index ETF (VAS) the best option for ASX diversification?

MotleyFool07-23

The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. But being the most popular doesn't ...

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AljaGibson
·07-23
Great post, simple and straight to the point
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But being the most popular doesn't ...</p>\n\n<a href=\"https://www.fool.com.au/2024/07/23/is-vanguard-australian-shares-index-etf-vas-the-best-option-for-asx-diversification/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7508","symbol_name":"医药生物股","start_time":0,"source_url":"https://www.fool.com.au/2024/07/23/is-vanguard-australian-shares-index-etf-vas-the-best-option-for-asx-diversification/","article_id":"2453748561","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2453748561","pubTimestamp":1721680200,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. 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But being the most popular doesn't necessarily mean it ticks every box as the best ETF to invest in. The VAS ETF is certainly a good choice for investors who want a cheap management fee at just 0.07% per annum. And when it comes to the number of different shares owned, the Vanguard Australian Shares Index ETF seems impressive, with 300 holdings. However, it may not be as diversified as it appears. Portfolio concentration According to Vanguard, only two sectors account for more than 50% of the overall portfolio. At June 2024, ASX financial shares comprised 31.1% of the portfolio and ASX mining shares were 20.8%. Not only is it concentrated on just two sectors, but the biggest businesses account for a lot of the portfolio. BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG) account for 42.3%. That's just eight ASX shares accounting for more than 40% of the portfolio. There's nothing particularly wrong with that, but if investors are buying Vanguard Australian Shares Index ETF with diversification as the number one criterion, there could be a better option. VanEck Australian Equal Weight ETF (ASX: MVW) An alternative to consider for ASX diversification is the MVW ETF. Instead of deciding its allocation on the market capitalisation size of each business, this fund is equally weighted between its 74 holdings. It's rebalanced quarterly to ensure that the positions stay equally weighted.   To be included in the index, a company's market cap needs to exceed US$150 million, the three-month average daily trading volume must be at least US$1 million, and the number of securities traded per month must be at least 250,000. At the moment, the fund's three biggest positions are Steadfast Group Ltd (ASX: SDF), Aristocrat Leisure Limited (ASX: ALL) and CSL. The smallest positions are currently IGO Ltd (ASX: IGO), Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Ltd (ASX: MIN). However, the only reason there are larger and smaller positions is just the recent performance. They'll be equal-weighted again soon enough. The biggest weighting is 1.54%, and the smallest is 1.16%. The MVW ETF has returned an average of 9.1% per annum over the past 10 years, while the VAS ETF has returned an average of 8% over the past 10 years.  As MVW ETF is weighted more toward smaller businesses, which can have greater return potential, I think the MVW ETF could outperform the Vanguard Australian Shares Index ETF.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":330485139386592,"gmtCreate":1721690507863,"gmtModify":1721690511479,"author":{"id":"4115100306321552","authorId":"4115100306321552","name":"AljaGibson","avatar":"https://community-static.tradeup.com/news/aa09319f36231e2c83b4410630f19dc4","vip":1,"hat":"https://static.tigerbbs.com/f87c5cf2575fbb4ebd1b95bcedd4e74a","crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"4115100306321552","idStr":"4115100306321552"},"htmlText":"Great post, simple and straight to the point","listText":"Great post, simple and straight to the point","text":"Great post, simple and straight to the point","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/330485139386592","repostId":2453748561,"repostType":2,"repost":{"id":"2453748561","pubTimestamp":1721680200,"share":"https://ttm.financial/m/news/2453748561?lang=&edition=fundamental","pubTime":"2024-07-23 04:30","market":"hk","language":"en","title":"Is Vanguard Australian Shares Index ETF (VAS) the best option for ASX diversification?","url":"https://stock-news.laohu8.com/highlight/detail?id=2453748561","media":"MotleyFool","summary":"The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. But being the most popular doesn't necessar","content":"<html><body><div> <p>The <strong>Vanguard Australian Shares Index ETF</strong> (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. But being the most popular doesn't necessarily mean it ticks every box as the best ETF to invest in.</p> <p>The VAS ETF is certainly a good choice for investors who want a cheap management fee at just 0.07% per annum.</p> <p>And when it comes to the number of different shares owned, the Vanguard Australian Shares Index ETF seems impressive, with 300 holdings.</p> <p>However, it may not be as diversified as it appears.</p> <h2><strong>Portfolio concentration</strong><strong></strong></h2> <p>According to Vanguard, only two sectors account for more than 50% of the overall portfolio. At June 2024, ASX financial shares comprised 31.1% of the portfolio and ASX mining shares were 20.8%.</p> <p>Not only is it concentrated on just two sectors, but the biggest businesses account for a lot of the portfolio.</p> <p><strong>BHP Group Ltd </strong>(ASX: BHP), <strong><a href=\"https://laohu8.com/S/CBAPJ.AU\">Commonwealth Bank of Australia</a> </strong>(ASX: CBA), <strong>CSL Ltd </strong>(ASX: CSL), <strong><a href=\"https://laohu8.com/S/NABPI.AU\">National Australia Bank Ltd</a> </strong>(ASX: NAB), <strong>Westpac Banking Corp </strong>(ASX: WBC), <strong>ANZ Group Holdings Ltd </strong>(ASX: ANZ), <strong>Wesfarmers Ltd </strong>(ASX: WES) and <strong><a href=\"https://laohu8.com/S/MQGPF.AU\">Macquarie Group Ltd</a> </strong>(ASX: MQG) account for 42.3%. That's just eight ASX shares accounting for more than 40% of the portfolio.</p> <p>There's nothing particularly wrong with that, but if investors are buying Vanguard Australian Shares Index ETF with diversification as the number one criterion, there could be a better option.</p> <h2>VanEck Australian Equal Weight ETF (ASX: MVW)</h2> <p>An alternative to consider for ASX diversification is the MVW ETF. Instead of deciding its allocation on the market capitalisation size of each business, this fund is equally weighted between its 74 holdings.</p> <p>It's rebalanced quarterly to ensure that the positions stay equally weighted.  </p> <p>To be included in the index, a company's market cap needs to exceed US$150 million, the three-month average daily trading volume must be at least US$1 million, and the number of securities traded per month must be at least 250,000.</p> <p>At the moment, the fund's three biggest positions are <strong>Steadfast Group Ltd</strong> (ASX: SDF), <strong>Aristocrat Leisure Limited</strong> (ASX: ALL) and CSL. The smallest positions are currently <strong>IGO Ltd </strong>(ASX: IGO), <strong>Pilbara Minerals Ltd </strong>(ASX: PLS) and <strong>Mineral Resources Ltd</strong> (ASX: MIN). However, the only reason there are larger and smaller positions is just the recent performance. They'll be equal-weighted again soon enough. The biggest weighting is 1.54%, and the smallest is 1.16%.</p> <p>The MVW ETF has returned an average of 9.1% per annum over the past 10 years, while the VAS ETF has returned an average of 8% over the past 10 years. </p> <p>As MVW ETF is weighted more toward smaller businesses, which can have greater return potential, I think the MVW ETF could outperform the Vanguard Australian Shares Index ETF.</p> </div></body></html>","source":"motleyfoolau_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Vanguard Australian Shares Index ETF (VAS) the best option for ASX diversification?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Vanguard Australian Shares Index ETF (VAS) the best option for ASX diversification?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-23 04:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2024/07/23/is-vanguard-australian-shares-index-etf-vas-the-best-option-for-asx-diversification/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. But being the most popular doesn't ...</p>\n\n<a href=\"https://www.fool.com.au/2024/07/23/is-vanguard-australian-shares-index-etf-vas-the-best-option-for-asx-diversification/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK7508":"医药生物股","NAB.AU":"NATIONAL AUSTRALIA BANK LTD","BK7507":"资源股","BK7135":"综合性银行","MIN.AU":"MINERAL RESOURCES LTD","BK4550":"红杉资本持仓","ETF.AU":"UBS IQ Research Preferred AU Share","PLS.AU":"PILBARA MINERALS LTD","WES.AU":"WESFARMERS LTD","FDN":"First Trust Dow Jones Internet I","BK7506":"金矿股","BK7095":"多种金属与采矿","CBA.AU":"COMMONWEALTH BANK OF AUSTRAL","SDF.AU":"STEADFAST GROUP LTD","ANZ.AU":"ANZ GROUP HOLDINGS LTD","BK7067":"生物科技","BK7504":"锂钴概念","WBC.AU":"WESTPAC BANKING CORPORATION","BK7511":"ESG概念","XAO.AU":"标普/澳交所 普通股指数","BK7153":"综合零售","IGO.AU":"IGO LTD","CSL.AU":"CSL LIMITED","XJO.AU":"标普/澳交所 200指数","BK7046":"综合性资本市场","BHP.AU":"BHP GROUP LTD","BK7078":"赌场与赌博","MVW.AU":"VANECK AUSTRALIAN EQUAL WEIG","XKO.AU":"标普/澳交所 300指数","ALL.AU":"ARISTOCRAT LEISURE LTD","BK4585":"ETF&股票定投概念","BK7041":"综合货品商店","VAS.AU":"VANGUARD AUST SHARES IDX ETF","BK7101":"保险经纪商","BK7501":"新冠治疗股","BK4588":"碎股","MQG.AU":"Macquarie"},"source_url":"https://www.fool.com.au/2024/07/23/is-vanguard-australian-shares-index-etf-vas-the-best-option-for-asx-diversification/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2453748561","content_text":"The Vanguard Australian Shares Index ETF (ASX: VAS) is Australia's most popular exchange-traded fund (ETF), with a size of $15.3 billion as of 30 June 2024. But being the most popular doesn't necessarily mean it ticks every box as the best ETF to invest in. The VAS ETF is certainly a good choice for investors who want a cheap management fee at just 0.07% per annum. And when it comes to the number of different shares owned, the Vanguard Australian Shares Index ETF seems impressive, with 300 holdings. However, it may not be as diversified as it appears. Portfolio concentration According to Vanguard, only two sectors account for more than 50% of the overall portfolio. At June 2024, ASX financial shares comprised 31.1% of the portfolio and ASX mining shares were 20.8%. Not only is it concentrated on just two sectors, but the biggest businesses account for a lot of the portfolio. BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG) account for 42.3%. That's just eight ASX shares accounting for more than 40% of the portfolio. There's nothing particularly wrong with that, but if investors are buying Vanguard Australian Shares Index ETF with diversification as the number one criterion, there could be a better option. VanEck Australian Equal Weight ETF (ASX: MVW) An alternative to consider for ASX diversification is the MVW ETF. Instead of deciding its allocation on the market capitalisation size of each business, this fund is equally weighted between its 74 holdings. It's rebalanced quarterly to ensure that the positions stay equally weighted.   To be included in the index, a company's market cap needs to exceed US$150 million, the three-month average daily trading volume must be at least US$1 million, and the number of securities traded per month must be at least 250,000. At the moment, the fund's three biggest positions are Steadfast Group Ltd (ASX: SDF), Aristocrat Leisure Limited (ASX: ALL) and CSL. The smallest positions are currently IGO Ltd (ASX: IGO), Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Ltd (ASX: MIN). However, the only reason there are larger and smaller positions is just the recent performance. They'll be equal-weighted again soon enough. The biggest weighting is 1.54%, and the smallest is 1.16%. The MVW ETF has returned an average of 9.1% per annum over the past 10 years, while the VAS ETF has returned an average of 8% over the past 10 years.  As MVW ETF is weighted more toward smaller businesses, which can have greater return potential, I think the MVW ETF could outperform the Vanguard Australian Shares Index ETF.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}