Vanguard has revealed the next distribution (or dividend) amount for the Vanguard US Total Market Shares Index ETF (ASX: VTS).
The VTS exchange-traded fund (ETF) will pay investors 95.08 US cents per unit on 22 January.
Based on today's exchange rate, that equates to A$1.44 per unit.
Vanguard will formally convert the dividend into Australian currency on 16 January.
The VTS ETF went ex-dividend today. The record date is tomorrow.
Vanguard does not offer a dividend reinvestment plan (DRP) with the VTS ETF, so all investors will receive a cash payment.
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What is the VTS ETF?
The Vanguard US Total Market Shares Index ETF provides exposure to the entire US stock market, or about 3,500 companies.
There is US$6.43 billion worth of assets under management in this ASX ETF.
VTS tracks the performance of the CRSP US Total Market Index (NASDAQ: CRSPTM1) before fees.
An investment in the VTS ETF includes some of the world's biggest companies.
There's the Magnificent Seven stocks — Nvidia Corp (NASDAQ: NVDA), Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA).
There's also a new favourite among Aussie investors, AI and defence software company Palantir Technologies Inc (NASDAQ: PLTR).
There's also Warren Buffett's Berkshire Hathaway Inc Class A (NYSE: BRK.A) and Berkshire Hathaway Inc Class B (NYSE: BRK.B).
An investment in VTS has paid off in 2025, with US stocks on track to outperform ASX 200 shares for a third consecutive year.
As of today, the S&P 500 Index (SP: .INX) is up 16.2% while the S&P/ASX 200 Index (ASX: XJO) is up 6.1%.
In its 2026 investment outlook, top broker Morgan Stanley projects S&P 500 shares will rise about 14% next year.
Serena Tang, Morgan Stanley's Chief Global Cross-Asset Strategist, said:
There will be some bumps along the way, but we believe that the bull market is intact.
The broker predicts a 6% gain for ASX 200 shares.
When you add the current average ASX 200 dividend of about 3.5%, that implies a 9.5% return in 2026.
VTS ETF share price snapshot
The VTS ETF is $507.69 per unit on Monday, up 0.64%, while the ASX 200 is up 0.91% at 8,699.8 points.
VTS ETF has a price-to-earnings (P/E) ratio of 27.45x and a price-to-book (P/B) ratio of 4.64x.
The return on equity (ROE) is 24.745% and the earnings growth rate is 22.95%.
The management fee is a tiny 0.03% per annum.
