The Vanguard Diversified High Growth Index ETF (ASX: VDHG) is trading at $69.52 per unit, up 0.68% on Thursday.
This exchange-traded fund (ETF) is a bit different to the norm.
Instead of directly investing in individual shares, it invests in a bunch of other ETFs, managed funds, and index funds.
This, in turn, provides investors with exposure to about 16,000 shares.
That's diversification on another level, and purchaseable via a single trade for a single brokerage fee.
Vanguard says the VDHG ETF seeks to track the weighted average return of the indices of the underlying funds it's invested in, in proportion to a strategic asset allocation, before fees and tax.
That strategic allocation is 90% to growth assets and 10% to income assets.
About 36% of the VDHG is ASX shares, and 26.5% is unhedged international shares.
VDHG is a popular option with Aussie investors and was among the top 7 ASX ETFs bought during the market sell-off in April.
The ASX ETF pays distributions, or dividends, quarterly.
The management fee is 0.27% per annum.
So, what if you invested $10,000 in the VDHG ETF a year ago? Was it a good choice?
Let's find out.
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Say you invested $10,000 in VDHG ETF a year ago…
On 29 May last year, the VDHG ETF closed at $63.78 apiece.
If you had put $10,000 into VDHG then, it would have bought you 156 units (for $9,949.68).
There's been a capital gain of $5.74 per unit since then.
That has delivered Australian investors an annual capital growth of $895.44.
Therefore, your portfolio is now worth $10,845.12.
But wait, there's more.
The VDHG ETF also pays dividends (called 'distributions' with ETFs).
VDHG has paid four distributions since 29 May 2024.
The VDHG ETF paid investors 105.50026 cents per unit on 16 July last year. The ETF then paid 36.7945 cents per unit on 16 October.
VDHG ETF investors also received 51.476195 cents per unit on 17 January this year and 93.362507 AU cents per unit on 16 April.
Altogether, that is 287.13 cents per unit.
So, you've received $447.92 in annual income from your 156 VDHG ETF units.
Your total annual returns…
Your capital gain of $895.44 plus $447.92 in dividends gives you a total dollar return of $1,343.36 over the past 12 months.
As stated earlier, you invested $9,949.68 in buying your 156 units on 29 May last year.
This means you have received a total return, in percentage terms, of 13.5%.
We recently ran the numbers on a $10,000 investment in another high-growth ASX ETF.
That one was the BetaShares Diversified All Growth ETF (ASX: DHHF).
Check out the results here.
