Most of us would be aware that ASX shares have had an exceptional few days of trading on the Australian share market. We've seen a flurry of new all-time highs for the S&P/ASX 200 Index (ASX: XJO) in recent days. And we've also seen the Vanguard Australian Shares Index ETF (ASX: VAS) soar to some new records of its own.
The Vanguard Australian Shares ETF is the most popular and widely held index fund on the ASX. So news of its new all-time record high today will delight investors all around the country.
Yesterday, VAS units closed at $98.87 each. But this morning, those same units opened at $99.60 before rising up as high as $99.97 – tantalisingly close to that elusive $100 mark.
At the time of writing, the Vanguard Australian Shares ETF remains just a touch below that new high watermark, with this exchange-traded fund currently up 0.98% at $99.94.
We don't have to look too far to understand why this ETF has just hit a new record today.
Why has the VAS ETF just hit a new ASX high?
The Vanguard Australian Shares ETF is an index fund, meaning it effectively mirrors a broader index. That index is not the S&P/ASX 200 Index (ASX: XJO), but rather the S&P/ASX 300 Index (ASX: XKO).
This index tracks the largest 300 stocks on the ASX by market capitalisation. It should come as no surprise to hear that this index has also reached a new record high today.
At present, the ASX 300 is up an eerily similar 1.02% at 8,015.8 points. That mark is also right on the ASX 300's new record high.
So with the ASX 300 resetting its record today, it was inevitable that the Vanguard Australian Shares ETF followed suit.
The performance of their mutual underlying holdings has driven today's new highs for both the ASX 300 and the ASX's VAS ETF.
Take Commonwealth Bank of Australia (ASX: CBA), now the largest stock on the ASX 300 Index. It, too, hit a new record high of $133.50 a share this Wednesday. All four of the major ASX banks are now at multi-year highs.
BHP Group Ltd (ASX: BHP) isn't having a great day, but CSL Ltd (ASX: CSL) is also just a touch off of its current 52-week high.
So it's CSL and the four major banks that ASX investors can thank for the new Vanguard record.
This latest high caps off what has been a relatively successful year for this ASX ETF. VAS units are now sitting on a year-to-date gain of 6.04%, as well as a 10.4% rise over the past 12 months. Let's now see if the Vanguard Australian Shares ETF can finally hit a three-digit unit price.
