When it comes to exchange-traded funds (ETFs), few are as popular as the Vanguard Australian Shares Index ETF (ASX: VAS).
At the last count, the VAS ETF had approximately $12.5 billion of assets under management.
What is the VAS ETF?
It isn't hard to see why this ETF is popular with Australian investors. That's because it provides investors with a really easy way to invest in ASX shares without the hassle of stock picking.
The VAS ETF is a low-cost (0.07% p.a. management fee) index-based exchange-traded fund that aims to track the ASX 300 index.
This index comprises 300 of the largest Australian companies measured by market capitalisation.
This is a diverse group of ASX shares ranging from banks to miners and retailers to healthcare companies.
Another reason why it may be attractive to investors is the yield on offer with its units. At present, the VAS ETF provides a dividend yield of 4.3%. Even with interest rates rising, that's still better than what you will find from most savings accounts and term deposits.
What are you buying with this fund?
To give you an idea of what ASX shares will be owning with the VAS ETF, let's take a look at its 10 biggest holdings. As you will see below, they are all household names and among the highest quality companies Australia has to offer.
They are as follows (with their ETF weighting):
- BHP Group Ltd (ASX: BHP) – 10.36%
- Commonwealth Bank of Australia (ASX: CBA) – 7.92%
- CSL Limited (ASX: CSL) – 5.76%
- National Australia Bank Ltd (ASX: NAB) – 3.97%
- Westpac Banking Corp (ASX: WBC) – 3.48%
- ANZ Group Holdings Ltd (ASX: ANZ) – 3.44%
- Woodside Energy Group Ltd (ASX: WDS) – 3.21%
- Macquarie Group Ltd (ASX: MQG) – 2.8%
- Wesfarmers Ltd (ASX: WES) – 2.51%
- Telstra Group Ltd (ASX: TLS) – 2.12%
