Which ASX ETF delivered better returns in FY25: VAS, VGS, or VTS?

Investors in these popular Vanguard ETFs enjoyed solid returns last financial year.

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ASX exchange-traded funds (ETFs) are increasingly popular, especially with younger investors, for their ease and diversification.

They enable investors to buy a big basket of shares tracking a specific index through a single trade for one brokerage fee.

In this article, we compare the FY25 performance of three popular ASX ETFs from the Vanguard stable.

Vanguard Australian Shares Index ETF (ASX: VAS)

Let's start with the biggest ASX ETF on the market.

The VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO), which is comprised of the 300 largest shares by market capitalisation.

We reveal the top 10 fastest rising shares within VAS in FY25 here.

The VAS ETF delivered a total net return of 13.67% (after fees) in FY25.

Investors' returns comprised approximately 9.9% in capital growth and 3.77% in dividends.

The VAS ETF closed at $106.36 per unit on 30 June. It hit a record high of $107.39 on 11 June.

The VAS ETF has $20.75 billion in funds under management (FUM), according to June data from the ASX.

That makes it the most popular listed ETF available to Aussie investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The VGS ETF is the second biggest ASX ETF on the market, with $11.662 billion in FUM.

It's the largest ASX ETF exposed to international shares on the Australian stock exchange.

The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

The ETF holds 1,325 stocks — mostly large-caps — in developed countries. They include the US and some in Europe, the Pacific, the Middle East, and other countries. US shares dominate the portfolio at more than 70%.

The VGS ETF delivered a total net return of 18.63% (after fees) in FY25.

That was comprised of approximately 12.96% in capital growth and 5.67% in dividends.

The VGS ETF closed at $142.85 per unit on 30 June. It hit a record high of $145 per unit on 31 January.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

The VTS ETF has about $5.586 billion worth of FUM.

This ETF seeks to track the performance of the CRSP US Total Market Index (NASDAQ: CRSPTM1) before fees.

What that means is exposure to the entire US share market of about 3,555 companies.

One of the benefits of VTS over ETFs tracking the S&P 500 Index (SP: .INX) is more exposure to mid-cap and small-cap US shares.

These young companies have more room for growth, but also carry more risk.

About 30% of the VTS ETF is invested in medium and small-sized businesses.

The VTS ETF delivered a total net return of 17.3% (after fees) in FY25.

Returns comprised approximately 14.16% in capital growth and 3.14% in dividends.

The VTS ETF closed at $464.34 per unit on 30 June. It hit a record high of $494.70 on 30 December.

Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF and Vanguard Us Total Market Shares Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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