Plenty of Aussies turn to the ASX to build wealth, but the vast majority invest quite differently to the richest among them. Though there is one similarity between the portfolios of millionaires and those of the average investor – the Vanguard Australian Shares Index ETF (ASX: VAS).
New data from Australian investing platform Selfwealth Ltd (ASX: SWF) provides insight into 1,200 portfolios worth more than $1 million, and the popular exchange-traded fund (ETF) sits in pride of place.
Units in the Vanguard Australian Shares Index ETF closed Friday's session trading at $90.45.
So, what is it about the VAS ETF that might have caught the eye of Australian millionaires? Let's take a look.
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Millionaires snap up Vanguard Australian Shares Index ETF (VAS)
Interestingly, there's generally a clear difference between the average portfolio and those worth more than $1 million. Notably, millionaire investors appear more likely to own individual stocks, with one clear exception.
The Vanguard Australian Shares Index ETF is the second most popular investment among millionaire shareholdings on the platform by volume and the most popular among the entire cohort.
And there are plenty of potential reasons for its popularity.
The ETF is the only one of its kind to track the S&P/ASX 300 Index (ASX: XKO) – thereby offering plenty of diversity. It also takes a small 0.1% annual management fee.
Interestingly, VAS is the only ETF in the 10 most popular holdings of Selfwealth's $1 million-plus portfolios. The vast majority are blue-chip stocks, with Fortescue Metals Group Limited (ASX: FMG) taking out the top spot.
Further down the list sits the Vanguard MSCI Index International Shares ETF (ASX: VGS) – the 12th most popular holding among millionaire investors.
Meanwhile, Betashares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) and the Betashares Nasdaq 100 ETF (ASX: NDQ) are the 15th and 20th most popular investments, respectively.
Comparatively, the top three most popular investments among Selfwealth's entire cohort are all ETFs – the VAS ETF, the Vanguard Diversified High Growth Index (ASX: VDHG), and the VGS ETF.
