As we've discussed here on the Fool before, ASX exchange-traded funds (ETFs) remain hot property on the ASX. In fact, last year was a record-breaking one for ETFs. We saw both record fund inflows and record funds under management (FUM) for ETFs in 2021. So now that 2022 is well underway, let's check in with the ASX's hottest ETF, the Vanguard Australian Shares Index ETF (ASX: VAS).
Now VAS isn't hot because of its blistering performance figures. Its 13.4% rise last year was an arguably solid result. But it wasn't even close to topping the ASX ETF sector. That honour would go to the BetaShares Geared US Equity Fund (ASX: GGUS) with its 2021 gain of 66.25%.
But VAS was, and remains, the most popular ASX ETF by funds under management. As of 31 December, it has just over $10.1 billion in FUM, well above its closest rival.
So there are a lot of investors who have money tied up in the Vanguard Australian Shares Index ETF. Hence, let's see how it has performed in 2022 so far.
As many investors would be aware of, 2022 hasn't been the kindest year for ASX shares. The S&P/ASX 200 Index (ASX: XJO) remains down by 4.96% for the year so far, even after the slight recovery we have seen over the past two weeks or so.
How the Vanguard Australian Shares Index ETF has performed in 2022
So how has VAS done?
Well, VAS's first recorded unit price of 2022 was $97.13. Today, it's currently trading at $92.39 at the time of writing. That's a drop of 4.87%. But, of course, VAS doesn't track the ASX 200. Instead, it is the only ASX ETF that follows the broader S&P/ASX 300 Index (ASX: XKO). That remains down 5.01% year to date.
So VAS units have slightly outperformed the ASX 300 index, but by the amount that you might expect for an index-tracking ETF.
As we covered last month, VAS has seen a couple of significant changes over the past month or two. For one, BHP Group Ltd (ASX: BHP) has become a far larger presence after the mining company completed its 'unification' program and ended its dual-listing on the London Stock Exchange. This saw a massive chunk of BHP shares move from the LSX to the ASX, increasing its presence and weighting in the ASX share market, and thus the index funds like VAS that mirror it.
The other was the departure of Afterpay, which was acquired in full by Block Inc (NYSE: SQ). In Afterpay's place, a CHESS Depositary Interest (CDI) of Block has now joined the ASX 200 and ASX 300.
No doubt investors will be hoping for a recovery in the VAS unit price over the rest of the year to make up for its lacklustre start to 2022. But we shall have to wait and see.
The Vanguard Australian Shares Index ETF charges a management fee of 0.1% per annum.
