Investors continue to pour serious money into two of the ASX's most popular Vanguard exchange-traded funds (ETFs).
The Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively oversee roughly $40 billion in funds under management.
For many Australian investors, the pair represents the foundation of a long-term portfolio. VAS provides broad exposure to the local market, while VGS looks beyond Australia's borders to developed international markets, including the US.
But with markets shifting and returns differing across regions, are these Vanguard ETFs still worth buying in September?
Image source: Getty Images
VAS: The Australian market workhorse
VAS is designed to provide exposure to the 300 largest companies listed on the ASX, making it a straightforward way to own a slice of Australia's corporate sector through a single investment.
The ETF has gained around 4% in 2026 and about 1% over the past 12 months. That's hardly spectacular, but its appeal isn't necessarily about chasing the strongest short-term returns.
Instead, VAS offers diversification across major Australian industries and a relatively attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among its largest holdings, each accounting for more than 10%.
The fund's dividend yield is around 3.7%, reflecting Australia's traditionally strong dividend culture.
There is, however, a catch. This Vanguard ETF is heavily tilted towards financials and resources. That means investors are indirectly making a sizeable bet on Australia's banks, commodity prices and domestic economy.
VGS: Taking the portfolio global
VGS tackles one of the biggest weaknesses of an Australia-only portfolio: concentration.
The Vanguard ETF invests across developed international markets, giving Australian investors exposure to hundreds of companies outside the local market. It has returned around 9% over the past year.
The US makes up a significant portion of the portfolio, with technology giants such as Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) among its largest holdings, each representing more than 5% at the time of writing.
That global exposure can help reduce reliance on Australia's relatively small and concentrated share market. It also gives investors access to industries and businesses that have a much smaller presence on the ASX.
But VGS isn't risk-free. International markets can experience sharp corrections, while geopolitical developments and movements in the Australian dollar can affect returns for local investors.
Are they still buys?
For long-term investors, there's a strong case for both Vanguard ETFs.
VAS can provide domestic exposure and a healthy income stream, while VGS adds international diversification and greater exposure to global growth companies.
Rather than viewing them as competing ETFs, investors could see the two as complementary building blocks.
Neither is guaranteed to outperform from here. But for investors focused on building wealth over decades rather than months, the combination of broad diversification, established companies and relatively simple portfolio construction remains compelling.
