Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest ASX-listed exchange-traded fund (ETF), but is it the cheapest?
Vanguard is one of the world's largest asset managers. It's not trying to make big profits, the owners of the business are the investors themselves. It passes the 'profits' onto investors by lowering the investment costs as low as it can.
The VAS ETF has an incredibly low annual management fee of just 0.07%. This was reduced from 0.10% on 3 July 2023, so VAS ETF investors are getting an even better deal.
Vanguard Australian Shares Index ETF gives investors exposure to the S&P/ASX 300 Index (ASX: XKO), which is an index of 300 of the biggest businesses including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL).
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Other very cheap ASX-focused ETFs
Different diversified ASX ETFs have a different number of holdings, with some holding 200 businesses and some owning 300.
The BetaShares Australia 200 ETF (ASX: A200) is invested in 200 ASX shares and it has an annual management fee of 0.04%, which was cut from 0.07% on 22 February 2023. That's even cheaper than the VAS ETF.
SPDR S&P/ASX 200 (ASX: STW) is invested in 200 ASX shares and it has an annual management fee of 0.05%, which was reduced from 0.13% per annum on 1 November 2023. This one is also cheaper than VAS ETF.
iShares Core S&P/ASX 200 ETF (ASX: IOZ) is invested in 200 ASX shares and it has an annual management fee of 0.05%. This ETF is cheaper than Vanguard's offering as well.
It seems all of these actually have cheaper annual management fees than Vanguard.
Not even the cheapest Vanguard offering
Vanguard has many different investment funds for investors to choose from.
If investors are looking for the cheapest management fees, then Vanguard US Total Market Shares Index ETF (ASX: VTS) has an incredibly low fee of just 0.03% per annum.
The strength of US businesses and global earnings would make me want to invest in the VTS ETF over the VAS ETF for the long term.
