The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF). It managed to beat the return of the S&P/ASX 200 Index (ASX: XJO) in November.
Looking at the return numbers, the Vanguard Australian Shares Index ETF went up by 6.4%, while the ASX 200 increased by 6.1%. In the grand scheme of things, the difference in performance between the two isn't much. But I think it's large enough to be noticeable.
I should note that the ASX 200 tracks 200 of the largest companies on the ASX. Meanwhile, the Vanguard ETF follows the S&P/ASX 300 Index (ASX: XKO). The Vanguard offering is invested in an extra 100 businesses, but they're both invested in the first 200.
What does this mean?
The return of those 200 largest companies would be virtually identical within the ASX 200 and the ASX 300, though there would be slight differences in the weights.
The largest holdings within the ASX 200 and ASX 300 are names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES), and Telstra Group Ltd (ASX: TLS).
But within the Vanguard Australian Shares Index ETF are names like Nick Scali Limited (ASX: NCK), Accent Group Ltd (ASX: AX1), Aussie Broadband Ltd (ASX: ABB), Zip Co Ltd (ASX: ZIP) and Ramelius Resources Limited (ASX: RMS) that all rose strongly.
Due to their smaller starting size, ASX small-cap shares may be able to deliver more growth than blue-chip shares though that's not always the case.
But, for both the ASX 200 and the Vanguard Australian Shares Index ETF, it was the BHP share price that was the biggest contributor. The BHP share price went up by 22% over the month.
How has 2022 gone to date?
In the year to date, the capital value of the Vanguard ETF has gone down by 5.75%. This compared to the ASX 200, which is only down by 3.1%.
