The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular exchange-traded fund (ETF) on the ASX. This index fund counts more than $12 billion in assets under management. So it goes without saying that many ASX investors will be interested to see how the VAS ETF went in November.
Let's check that out today.
Right off the bat, VAS units began November at a price of $83.79, which was a low point for VAS over 2023 – just a tad above its current 52-week low of $83.45.
Already, you can tell November has been a pretty good month for the Vanguard Australian Shares ETF. The fund finished up its November today at $88.00 flat per unit. That means this popular ASX ETF enjoyed an appreciation of 5.02% over the month.
We didn't have any VAS dividend distributions or ex-distribution dates over November. So the 5.02% performance figure is absolute.
It's also a very good return for just one month relative to what this ETF typically brings in. According to Vanguard, the VAS ETF has delivered an average return of 7.16% per annum over the past five years and an average of 6.51% over the past 10.
What's behind the happy November for the VAS ETF on the ASX?
So why has the Vanguard Australian Shares ETF had such a lucrative month? Well, this ETF works by mirroring an index – in this case, the S&P/ASX 300 Index (ASX: XKO).
Put simply, VAS has reflected the great November that the ASX 300 Index had as well. Most of both instruments' major constituents, shares like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), have had solid months. So this is why VAS has, too.
In saying that, this Vanguard ETF has bounced back from what was a pretty rough October. The previous month saw VAS units shed a nasty 5.25%. So this pleasing November performance has only partly made up for the miserly October.
Even so, the Vanguard Australian Shares Index ETF unit price remains up by 2.54% over 2023 to date.