The Vanguard US Total Market Shares Index ETF (ASX: VTS) gives Aussie investors exposure to more than 3,700 United States stocks, including the Magnificent Seven and many small caps and micro caps.
And that was handy exposure in a year when US shares outperformed ASX shares by about 3:1.
The S&P 500 Index rose by 22.7%, and the tech-heavy NASDAQ Composite Index lifted 28.61% in FY24.
Here at home, the S&P/ASX 200 Index (ASX: XJO) rose by 7.83%.
So, how profitable was it to own the Vanguard US Total Market Shares Index ETF in FY24?
How profitable was ASX VTS for Aussie investors in FY24?
The ASX VTS exchange-traded fund (ETF) began FY24 at $329.34 per unit.
The ASX ETF reached a 52-week high of $408 per unit on the final trading day of FY24.
It closed out the financial year at $406.76 per unit. That's a 23.51% uplift.
With ETFs, we need to take into account the fees we pay for their management. The ASX VTS has a management expense ratio (MER) of 0.03%, making it one of the 10 cheapest ASX ETFs on the market.
Back to our returns for FY24.
Let's say you put $10,000 into the ASX VTS on 1 July 2023 at a price of $329.34 per unit.
That would have given you 30 units in ASX VTS.
The 23.51% uplift in value means your holdings are now worth $12,322.60.
But wait, there's more!
What about dividends?
First of all, ETFs call dividends 'distributions', so let's get the language right first.
In FY24, the ASX VTS paid four distributions to Aussie investors:
- On 24 July 2023, it paid $1.2077
- On 20 October 2023, it paid $1.2609
- On 24 January 2024, it paid $1.5212
- On 24 April 2024, it paid $1.4079.
Altogether, ASX VTS owners received $5.3977 per unit in distributions during FY24.
If you held 30 units, then you received a total of $161.931.
If we add that to our capital earnings of $2,322.60, we get a total return of $2,484.53 for FY24.
In percentage terms, that's a return of just under 24.85% on your original $10,000 buy on 1 July 2023.
More about the ASX VTS
The ASX VTS seeks to track the performance of the CRSP US Total Market Index (NASDAQ: CRSPTM1) before fees.
And yes, before you ask, that index does include the Magnificent Seven stocks we are all obsessed with! They are Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla shares.
Other appealing US stocks are also in the mix. They include Warren Buffett's Berkshire Hathaway and diabetes and obesity GLP-1 drug maker Eli Lilly And Co.
