Is the BetaShares Diversified All Growth ETF (DHHF) a good ASX buy?

This ETF is a rather special one…

| More on:
Seven men and women of different ages and nationalities put their heads together and smile as they look down at the camera.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Late last month, my Fool colleague Bronwyn reviewed ten of the most traded exchange-traded funds (ETF) on the ASX. Amongst the usual suspects, the BetaShares Diversified All Growth ETF (ASX: DHHF) made the cut.

Predictably, the most popular ASX ETFs by assets under management also saw the heaviest interest in August. Those included the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), and the iShares S&P 500 ETF (ASX: IVV).

While it's a stretch to call those ASX ETFs household names, they are certainly among the most well-known in the ASX investor community.

But the BetaShares Diversified All Growth ETF? Not so much. But even so, this fund came in at number eight on this August list.

So today, let's talk about whether DHHF units might be a good buy this October and beyond.

DHHF: A diversified ASX ETF

Unlike most ASX ETFs, the BetaShares Diversified All Growth ETF doesn't hold a portfolio of underlying shares. Instead, it functions as something of an 'ETF of ETFs', holding other ETF investments within its portfolio.

This is a similar approach to the one that the Vanguard Diversified High Growth Index ETF (ASX: VDHG) takes.

In DHHF's case, ASX investors' cash is split between Australian shares (37% at the latest count) and international shares (63%). Those international shares can be further divided into American shares (38.8%), shares from other developed economies (17.7%), and shares from emerging markets (6.5%).

The idea behind this kind of investment is that instead of buying four or more different ASX ETFs, an ASX investor can buy just one (DHHF) while still getting exposure to multiple asset classes.

As the name implies, the BetaShares Diversified All Growth ETF is geared towards investors who want pure exposure to growth assets (shares). That's without any counterbalancing defensive assets like bonds or cash.

That stands in contrast with other BetaShares funds in this vein, such as the BetaShares Ethical Diversified Balanced ETF (ASX: DBBF. These instead look to balance growth assets with defensive investments.

Is the BetaShares Diversified All Growth ETF right for you?

This will depend on each individual's personal circumstances, of course. But I would argue that this ETF is suitable for anyone who has a long-time horizon and wishes to build wealth passively.

DHHF has a lot to offer ASX investors. Particularly those who don't wish to spend a lot of time researching different stocks or ETFs. It offers instant diversification across multiple markets, countries, economies and currencies.

It also brings a decent track record to the table, having delivered an average of 11.09% per annum (as of 30 September) since its inception in 2020.

With a management fee of 01.9% per annum, DHHF isn't the cheapest ETF on the ASX. But even so, it still ranks among the lowest-cost diversified ETFs on the market. To illustrate, Vanguard's VDHG ETF charges a 0.27% per annum annual fee.

So, all in all, I think the BetaShares Diversified All Growth ETF is a strong option for anyone wishing to build wealth in the stock market with the least amount of effort.

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

ETF spelt out
ETFs

3 fantastic ASX ETFs to buy for your investment portfolio in 2025

Let's see why these funds could be quality options for investors.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
ETFs

Want to buy the iShares S&P 500 ETF (IVV)? Here are the stocks you'd own

It's a popular index fund. But which American stocks does the IVV ETF actually buy for you?

Read more »

Five happy young friends on the coast, dabbing and raising their arms in the air.
ETFs

5 most popular Vanguard ASX ETFs for investment

There was a surge in ASX ETF investment in the September quarter, new data shows.

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

What type of ASX ETF is attracting the most investment in 2024?

New data from the ASX and Vanguard reveals the most popular type of ETF right now.

Read more »

Red percentage sign on blocks on top of each other, symbolising interest rates.
ETFs

Buy these ASX income ETFs to beat falling interest rates

These ETFs could help income investors when interest rates fall.

Read more »

A worried woman looks at her phone and laptop, seeking ways to tighten her belt against inflation.
ETFs

Is this the best Vanguard ASX ETF for nervous investors?

This little-known Vanguard ETF could be what conservative investors are looking for.

Read more »

ETF spelt out with a rising green arrow.
ETFs

Invest $2,000 into these top ASX ETFs this week

Money to invest? Then check out these funds that offer easy access to quality stocks.

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
ETFs

2 ASX ETFs I'd buy for my child for the long term

These ETFs look to me like top picks today for the long term.

Read more »