That's exactly why I believe Australian investors should focus on a strategy that blends growth, resilience, and rising income.

For retirees who own their home, the latest ASFA Retirement Standard suggests a couple needs around $77,000 a year for a comfortable lifestyle, while singles need roughly $55,000.

That makes the final 10 years before retirement the ideal time to shape a portfolio designed to support that level of spending.

Local and global reach through ETFs

My preferred approach starts with broad ASX and global share ETFs as the portfolio's growth engine. A core holding in the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to many of the market's best dividend-paying companies.

Adding an international ETF such as BetaShares Global Shares ETF (ASX: BGBL) helps diversify beyond the banks and miners that dominate the local market.

Together, these ETFs can still deliver the capital growth needed to keep pace with inflation over what could be a 25-year retirement.

Increase income, limit risk

But this is also the decade when income starts to matter more. That's why I like gradually introducing a high-yield ETF such as SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). The higher dividend stream, supported by franking credits, can help lift the portfolio's cash generation without relying entirely on selling units.

At the same time, reducing risk becomes critical. A major market sell-off just before retirement can permanently damage a drawdown plan, which is why I would steadily increase exposure to bond ETFs such as the Vanguard Australian Fixed Interest ETF (ASX: VAF).

Bonds may not deliver eye-catching returns, but they can provide stability and act as a valuable shock absorber when share markets turn volatile.

Blue chips for growth

I'd also reserve a smaller slice of the portfolio for a handful of elite ASX blue-chip shares. Names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL) can add a blend of dependable dividends and long-term earnings growth. These businesses have the scale and quality to remain core holdings well into retirement.

The real secret, though, is the glide path. Ten years out, I'd still lean heavily into shares. Five years from retirement, I'd be lifting bond and cash exposure. By retirement day, I'd want at least two years of living expenses sitting in cash or term deposits, ready to fund spending needs without touching shares in a downturn.

That combination of ASX ETFs, quality blue chips, bonds, and a cash buffer creates exactly what pre-retirees need most: a portfolio built not just to grow wealth, but to defend it when it matters most.

The post 10 years to retirement? Here's how to build a solid income appeared first on The Motley Fool Australia.

If I were building a $100,000 ASX retirement income portfolio today, I'd blend three quality dividend shares with two ETFs.

Here's how I'd do it.

Reliable earnings and payouts

I'd start with $25,000 in APA Group Ltd (ASX: APA). The infrastructure giant currently offers a dividend yield of about 6.1%, backed by essential gas pipelines and electricity assets that generate long-term contracted cash flow. That kind of reliability is ideal for retirees seeking a consistent retirement income. 

Next, I'd allocate $20,000 to ANZ Group Holdings Ltd (ASX: ANZ). While the yield is a little below your original 5% screen at roughly 4.5%, the partially franked dividend and resilient banking earnings still make it highly attractive for income investors. Banks remain some of the most dependable dividend payers on the ASX. 

For a third direct shareholding, I'd put $15,000 into Transurban Group (ASX: TCL).

Like APA, it owns hard-to-replicate infrastructure assets, with toll roads across Sydney, Melbourne, and North America. Traffic-linked revenue provides inflation pass-through over time, which can help preserve purchasing power in retirement.

High-yielding blue chips and bonds

Now for the ETFs in the retirement portfolio.

I'd allocate $25,000 to the Vanguard Australian Shares High Yield ETF (ASX: VHY). This ETF gives instant exposure to a basket of Australia's highest-yielding blue-chip shares, including banks, miners, and telcos. It reduces single-stock risk while keeping the income focus front and centre.

The final $15,000 would go into the Vanguard Australian Fixed Interest ETF (ASX: VAF). Bonds might not be exciting, but they add portfolio stability and help smooth out volatility when equity markets get rough.

This blend gives you 60% in direct quality dividend shares, 25% in diversified high-yield equities, and 15% in defensive bonds. It could deliver a blended yield of around 5.3% to 5.8%, along with solid exposure to franking credits and inflation-linked infrastructure.

On a $100,000 portfolio, that could mean $5,300 to $5,800 per year in cash income, before any dividend growth.

Foolish Takeaway

What I really like about this setup is the balance.

APA and Transurban provide infrastructure-style resilience, and ANZ adds partially franked bank income. The Vanguard ETF broadens exposure, while the fixed interest ETF reduces sequence risk, which becomes increasingly important once you're drawing an income.

For an Australian retiree, this is the kind of portfolio that can help generate retirement income today without sacrificing long-term durability.

The post How I'd invest $100,000 for retirement income on the ASX right now appeared first on The Motley Fool Australia.

Investors who own Vanguard Australian Shares Index ETF (ASX: VAS) or other ETFs will receive their dividends on 20 April.

According to the schedule, the ex-dividend date is tomorrow, 1 April, and the record date is 2 April.

In order to be entitled to a dividend, new investors must buy the ETF before the ex-dividend date.

How much will ASX VAS investors get?

ASX VAS is the most popular ETF on the market with $24.21 billion in funds under management.

VAS ETF tracks the performance of the top 300 listed companies in Australia via the S&P/ASX 300 Index (ASX: XKO).

Vanguard will pay 84.788 cents per unit to ASX VAS investors on 20 April.

Here is a summary of the dividends that other Vanguard ETFs will pay to investors next month.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 81.1836 cents per unit.

Vanguard Diversified High Growth Index ETF (ASX: VDHG) will pay 64.7933 cents per unit. This ASX ETF provides exposure to 16,000 ASX and international shares.

The Vanguard MSCI Index International Shares ETF (ASX: VGS), which provides exposure to 1,500 stocks in developed nations outside Australia, will pay 39.576 cents per unit.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay 29.4897 cents per unit. This ASX ETF tracks the Bloomberg AusBond Composite 0+ Yr Index.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) will pay 50.5505 cents per unit. This ASX ETF allows investors exposure to bricks and mortar via the S&P/ASX 300 A-REIT Index.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars, will pay 27.0768 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM), which tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, will pay 177.1192 cents per unit.

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 43.9277 cents per unit. This ASX ETF tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars.

Want to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for ASX VAS and the other Vanguard ETFs listed above.

DRP elections must be made by 5pm on Thursday.

The post Own ASX VAS or other Vanguard ETFs? Dividends just announced appeared first on The Motley Fool Australia.

With thousands of companies to choose from, constant market noise, and the fear of losing money, getting started can feel overwhelming.

But building wealth through investing doesn't need to be complicated. A straightforward portfolio of broad ASX ETFs, quality ASX shares, and bonds can help investors build a resilient portfolio that grows over the long term.

Here's how I'd do it.

Broad market index funds

Step one is to start with broad market ASX ETFs. Exchange-traded funds are one of the easiest ways to gain instant diversification. Rather than trying to pick individual winners from day one, investors can spread their money across hundreds of companies.

A simple starting trio could include the BetaShares Australia 200 ETF (ASX: A200) for exposure to Australia's blue-chip shares. Then add the Vanguard MSCI International Shares ETF (ASX: VGS) for global diversification, and the iShares MSCI Emerging Markets ETF (ASX: IEM) for access to faster-growing developing economies.

Together, these ASX ETFs provide exposure to thousands of companies across Australia, the US, Europe, and emerging markets. That kind of diversification can reduce risk and smooth returns over time.

High-quality ASX stocks

Once the ASX ETFs and the foundations are in place, investors can begin layering in individual companies with strong competitive advantages and long-term growth potential.

The Australian market is home to several world-class businesses that have delivered impressive shareholder returns over decades.

Companies like CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) have built powerful market positions and continue expanding globally. Adding a handful of quality growth shares can give a portfolio an extra engine for capital appreciation.

Reliable dividend payers

The next step is to include reliable dividend payers. Income is another important component of long-term investing, especially for Australians who benefit from franking credits.

Well-established businesses such as Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) have long histories of returning cash to shareholders through dividends. Reinvesting those dividends can significantly boost returns through the power of compounding.

Stability through bonds

Then it's time to add stability through bonds. Shares can be volatile, particularly during market downturns. Bonds can help stabilise a portfolio and reduce overall risk.

One easy way to gain exposure is through bond ASX ETFs such as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). These funds invest in government and high-quality corporate bonds, providing steady income and typically moving less dramatically than equities.

Having a portion of a portfolio in bonds can provide valuable balance during turbulent markets.

Invest consistently, think long term

Perhaps the most important step is simply sticking with the plan: invest consistently and think long term. Markets will rise and fall, sometimes sharply. But history shows that patient investors who regularly add to their portfolios tend to be rewarded over time.

Rather than trying to time the market, a steady investing habit — such as contributing monthly — can smooth out volatility and build wealth gradually.

In the end, successful investing doesn't require complex strategies or constant trading. A simple mix of diversified ASX ETFs, quality ASX shares, and stabilising bonds can form a powerful foundation for long-term wealth creation.

The post New to investing? Start with ASX ETFs and quality ASX stocks appeared first on The Motley Fool Australia.

These funds can provide diversification, exposure to resilient assets, and lower volatility during economic downturns.

Rather than trying to time market swings, defensive ASX ETFs aim to smooth returns. They do this by investing in assets that have historically held up better during crises, such as government bonds, gold, and high-quality global companies.

If I were building a more resilient portfolio today, these three ASX ETFs would be on my radar.

Vanguard Australian Fixed Interest ETF (ASX: VAF)

This Vanguard ASX ETF focuses on investment-grade Australian bonds, including government and high-quality corporate debt.

Bonds are often considered one of the most reliable defensive assets because they tend to perform better when economic growth slows and central banks cut interest rates. During equity market selloffs, investors frequently rotate into bonds for safety, which can support prices.

The fund tracks a broad bond index and includes securities issued by the Australian government as well as major financial institutions such as Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB).

The strength of this ASX ETF is stability. Income from interest payments can help cushion portfolios during equity downturns, and the diversification across many issuers reduces individual credit risk.

However, bond ETFs are not completely risk-free. Rising interest rates can push bond prices lower, which means returns may be weaker during periods of tightening monetary policy.

Global X Physical Gold ETF (ASX: GOLD)

The Global X Physical Gold ETF offers investors exposure to the price of physical gold stored in secure vaults.

Gold has long been viewed as a hedge during financial crises, inflation shocks, and currency volatility. When investors lose confidence in financial markets, demand for gold often increases.

That dynamic has helped the metal perform well during several major market disruptions, including the Global Financial Crisis and the COVID-19 market crash.

Unlike equity ETFs, this ASX ETF doesn't hold corporate shares. Instead, it tracks the price of physical bullion. While gold mining giants such as Newmont Corporation (ASX: NEM) and Barrick Mining Corp (NYSE: B) are often influenced by the same underlying commodity trends, this ETF gives direct exposure to the metal itself.

The key strength here is diversification. Gold often moves differently from shares and bonds, which can help reduce overall portfolio volatility.

The main drawback is that gold does not generate income like dividends or interest, meaning long-term returns depend entirely on price appreciation.

VanEck MSCI World ex Australia Quality ETF (ASX: QUAL)

The VanEck ASX ETF focuses on high-quality global companies with strong balance sheets, high returns on equity, and stable earnings.

Quality investing is a defensive strategy because companies with durable competitive advantages and consistent cash flow often perform better during economic slowdowns.

The ETF holds global leaders such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), along with dozens of other financially strong multinational businesses.

One of the biggest advantages of this ASX ETF is exposure to resilient global franchises that dominate their industries. These types of businesses tend to maintain profitability even when economic conditions weaken.

The main risk is that the fund still invests in equities, meaning it can fall during broad market selloffs. However, quality stocks have historically been less volatile than the broader market over the long term.

The post 3 defensive ASX ETFs to battle through market turmoil appeared first on The Motley Fool Australia.

This includes the market's largest ETF, the Vanguard Australian Shares Index ETF (ASX: VAS).

Aussie investors have $22.58 billion invested in ASX VAS, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO).

VAS ETF delivered a total gross return of 10.07% last year, made up of 7.05% in capital growth and a dividend yield of 3.02%.

The ETF closed out the year at $108.90 per unit on 31 December after retracing a little from its 52-week high of $113.18 on 16 October.

On Friday, VAS closed the week at $110.50 per unit, up 0.53%.

Let's recap the dividends to be paid out today for investors in VAS and other Vanguard ETFs.

How much will Vanguard ETF investors receive?

Here is a summary of the dividends that Vanguard will pay to investors today.

The Vanguard Australian Shares Index ETF (ASX: VAS) will pay a dividend of 82.08 cents per unit.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 65.83 cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) will pay a dividend of 47.36 cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 129.60 cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees, will pay 61.60 cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay a dividend of 42.44 cents per unit.

Vanguard Australian Property Securities Index ETF (ASX: VAP), which tracks the performance of the S&P/ASX 300 A-REIT Index before fees, will pay 45.61 cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 132.88 cents per unit.

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH), which tracks the FTSE Australia 300 Choice Index before fees, will pay 55.39 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 85.44 cents per unit.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) will pay a dividend of 63.34 cents per unit.

The post Vanguard will pay ASX ETF dividends today appeared first on The Motley Fool Australia.

The ETF provider will pay investors next Monday, 19 January.

Let's take a look.

Next round of dividends for Vanguard ASX ETF investors

Here is a summary of the dividends that Vanguard will pay to investors holding some of its most popular products on 19 January.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 82.08 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 65.83 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 47.36 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 129.60 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) provides exposure to about 1,300 companies listed in major European markets. It tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 61.60 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 42.44 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 45.61 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 132.88 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 55.39 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 85.44 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC), which tracks the MSCI Australian Shares Large Cap Index, will pay a dividend of 63.34 AU cents per unit.

The post Vanguard reveals next lot of dividends for VAS and other ASX ETFs appeared first on The Motley Fool Australia.

If you want to top up your holdings before payday, you'd better hurry, as the ex-dividend date is next Wednesday, 1 October.

Investors will receive their dividends on 16 October.

How much will Vanguard ASX ETF investors receive?

Here is a sample of the dividend amounts investors in some of the most popular Vanguard ETFs will receive on 16 October.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 109.8836 cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG), which aims to track the weighted average return of various indices, will pay a distribution of 36.6162 cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 110.2292 cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 37.0856 AU cents per unit.

The Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 27.9914 AU cents per unit. The VESG tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index. It will pay 28.7623 cents per unit.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars. It will pay 12.9677 cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index. It will pay 59.9213 cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 21.5885 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 19.6512 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars. It will pay 30.0260 AU cents per unit.

Bear in mind that these are estimated distribution amounts. Vanguard will advise us of the finalised figures in due course.

Interested in reinvesting your dividends?

A distribution reinvestment plan (DRP) is available for all of these Vanguard ETFs.

DRP elections must be made by 5pm on the record date, which is 2 October.

The post Own ASX VAS, VDHG or other Vanguard ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

Well, today's a great day for you and other Vanguard ETF investors because it's dividend payday!

Vanguard will pay your distributions today. Here's how much you'll receive.

Own VAS or VGS ETFs? Here's how much you'll get today…

VAS is Australia's biggest ETF with $20.75 billion in funds under management (FUM), according to June data from the ASX.

VAS seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees.

The VAS ETF will pay a dividend of 65.1416 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is the second biggest ETF on the Australian share market.

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

This ETF will pay a dividend of 128.4107 AU cents per unit.

Dividends for other Vanguard ETFs…

Here is a summary of the dividend amounts investors in these Vanguard ETFs will receive on Wednesday.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 201.0911 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 398.3168 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 104.3118 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 53.6889 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 161.2115 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 20.1612 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 41.7466 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 154.1283 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

What about the ASX VTS?

Investors in the Vanguard US Total Market Shares Index ETF (ASX: VTS) will receive their dividend on 28 July.

Vanguard will pay VTS ETF investors 91.32 US cents per unit.

Vanguard will convert the dividend into Australian currency on 22 July and advise investors of the final amount to be paid.

The post Why it's a great day for Vanguard ASX ETF investors! appeared first on The Motley Fool Australia.

Investors will receive their dividends on 16 July.

According to the timetable, the ex-dividend date is tomorrow, 1 July, and the record date is 2 July.

How much will Vanguard ASX ETF investors get?

Here is a summary of the dividend amounts investors in some of the most popular Vanguard ETFs will receive on 16 July.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 65.1416 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 201.0911 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 128.4107 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 398.3168 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) provides exposure to about 1,300 companies listed in major European markets. It tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 104.3118 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 53.6889 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 161.2115 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 20.1612 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 41.7466 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 154.1283 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

Want to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of these Vanguard ETFs.

DRP elections must be made by 5pm on the record date, which is 2 July.

Recent research by Vanguard shows ETFs are more resilient during market turbulence than individual shares.

The post Own Vanguard ASX ETFs? Here's your next dividend and when it's coming appeared first on The Motley Fool Australia.

The latest BetaShares data shows there is now $255.3 billion invested in ETFs.

Overall ETF investment increased by 34.8% — or $66 billion — in the 12 months to 28 February.

For ETF owners, it's probably comforting to know that so many other Australians also see ETFs as a great way to invest.

And there's another reason to feel happy about your ETF investments today.

It's payday for Vanguard ETF investors…

Vanguard will pay the following distributions (or dividends) to ETF investors today.

The Vanguard Australian Shares Index ETF (ASX: VAS), which tracks the S&P/ASX 300 Index (ASX: XKO), will pay 72.8373 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS), which tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index, will pay 147.7026 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. It will pay 244.9839 AU cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) provides exposure to 16,000 local and international shares. The VDHG ETF will pay 93.7006 AU cents per unit to investors today.

The Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC), which tracks the MSCI Australian Shares Large Cap Index, will pay 107.1923 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars. It will pay 15.9942 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index. It will pay 83.3816 AU cents per unit to investors today.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index. It will pay 25.1104 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 62.7420 AU cents per unit today. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index. It will pay 37.3359 AU cents per unit today.

Aussie investors were buying the dip in ETFs during last week's market sell-off. Here are the 7 most popular ETFs bought.

The post Here's why it's a great day to own Vanguard ASX ETFs appeared first on The Motley Fool Australia.

Investors who own any of the 25 Australian Vanguard ETFs, including the largest on the market, the Vanguard Australian Shares Index ETF (ASX: VAS), will receive their dividends on 16 April.

According to the schedule, the ex-dividend date is 1 April, and the record date is 2 April.

How much will ETF investors get?

Here is a summary of the dividend amounts that investors in some of the most popular ASX ETFs will receive on 16 April.

The ASX VAS, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay 72.8373 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 244.9839 AU cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) provides exposure to 16,000 ASX and international shares. The VDHG ETF will pay 93.7006 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to 1,500 listed companies from developed nations outside Australia. This ETF will pay 147.7026 AU cents per unit.

The Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) tracks the MSCI Australian Shares Large Cap Index before fees. It will pay 107.1923 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay 25.1104 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 83.3816 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 15.9942 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 37.3359 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 62.7420 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

A distribution reinvestment plan (DRP) is available for all 25 ETFs.

DRP elections must be made by 5pm on the record date, which is 2 April.

You can check out the half-year reports for each of these ETFs here.

The post Own Vanguard ASX ETFs? Here's how much you'll receive in dividends and when appeared first on The Motley Fool Australia.

Whilst 2024 has been a phenomenal year to own ASX shares, many investors, not to mention prospective investors, might be feeling queasy about buying in right now. Given the above-average gains this year has already brought us, and all.

After all, higher ASX share prices, particularly from expanding price-to-earnings (P/E) ratios, translate into higher risk for new buyers.

But don't take it from me. Take it from legendary investor Warren Buffett, who once said this:

Whether we're talking about stocks or socks, I like buying quality merchandise when it is marked down.

He also once stated:

The three most important words in investing are 'margin of safety.'

The vast majority of quality ASX shares are most certainly not marked down right now. And that means that finding a top-shelf company with a margin of safety is a very difficult task indeed.

But ASX investors shouldn't despair.

How to invest when ASX shares are at record highs

For one, index investing, particularly through a dollar-cost averaging strategy, has proved to be an effective path to accumulating wealth through all kinds of markets.

If you are a long-term investor, I think you can still feel confident in periodically investing in a cheap, diversified index fund, even at current prices. But make sure you continue to buy with the same gusto next time there is a stock market correction or crash. This strategy doesn't work very well if you only 'buy high'.

But if you can't stomach putting any more capital into the stock market right now, there are still plenty of alternatives.

There's always that great Australian pastime – buying property – to consider. However, I acknowledge that this isn't an easy alternative for most readers.

That's why you might want to take advantage of the current high interest rate environment. Most Australians would be aware that interest rates are currently at decade-highs. While this has caused a lot of economic pain for many Australians, high rates do come with a silver lining.

Cash and offset accounts can balance ASX shares

Interest rates on savings accounts and term deposits haven't been as high as they are today in many years. You can easily put your money in the bank (savings account or term deposit) and secure an interest rate of at least 5% right now.

That's a 5% return with zero risk (up to $250,000 anyway). Most of the popular ASX dividend shares are presently offering much less than 5% in yield today, thanks to rising share prices. To illustrate, Commonwealth Bank of Australia (ASX: CBA) stock will only get you a 2.94% trailing yield right now.

As such, if you value capital preservation, a term deposit might be a good alternative to shares in the current environment. If you don't want to use a term deposit or a savings account, a good ASX alternative is a cash exchange-traded fund (ETF) like the BetaShares Australian High-Interest Cash ETF (ASX: AAA) or the iShares Core Cash ETF (ASX: BILL).

Alternatively, if you already have a mortgage on a property, you might want to take advantage of an offset account. With high interest rates, an offset account can help you benefit from holding cash but without paying those pesky taxes on interest earned at the bank.

Remember, holding a dollar in an offset account attached to a 7% mortgage will net you a real return of 7% on that dollar every year until the mortgage is paid off.

Don't forget about bonds

If you don't have a mortgage, another alternative to the share market that has the potential to deliver some reasonable returns is bonds. It's difficult for most ordinary investors to invest in government or corporate bonds directly. However, once again, ASX ETFs provide an avenue.

For example, the Vanguard Australian Fixed Interest ETF (ASX: VAF) and the iShares Core Composite Bond ETF (ASX: IAF) are two popular options. Both offer yields of between 2-3% right now, and could increase in value if interest rates start falling.

Foolish takeaway

The recent record highs of the share market are certainly something to take into account if you have money to invest right now.

But don't despair. This is not 2021, and there are many alternatives to the share market if you're looking for real yield but are not comfortable with the recent highs.

The post Concerned about ASX shares at all-time highs? Don't worry, you've got options appeared first on The Motley Fool Australia.

For example, investors can access the Australian share market through the Vanguard Australian Shares Index ETF (ASX: VAS), which tracks the 300 shares listed on the S&P/ASX 300 Index. To gain exposure to the global share market, they can invest in the Vanguard MSCI Index International Shares ETF (ASX: VGS).

However, some Aussies may be cautious about investing in the share market because of the share price volatility that can occur. What if there was an ASX ETF that could give some access to the share market but with less risky exposure?

Vanguard offers the Vanguard Diversified Conservative Index ETF (ASX: VDCO), which may be just what nervous Aussie investors are looking for.

Defensively positioned

Some readers may already have heard of Vanguard Diversified High Growth Index ETF (ASX: VDHG), which is primarily invested in growth assets.

The more conservative VDCO ETF invests in the same sort of asset groups but with very different percentages.

Its target for growth assets is:

• 12% weighting to Australian shares
• 8.5% weighting to international shares
• 5.5% weighting to International shares (hedged)
• 2% weighting to international small companies
• 2% weighting to emerging market shares.

Altogether, the VDCO ETF has a total target weighting of approximately 30% to growth assets.

The rest of the portfolio is invested in defensive/income assets that can deliver appealing income levels with less volatility.

These are the current weightings for the conservative assets:

• 42% weighting to international fixed interest (hedged)
• 18% weighting to Australian fixed interest
• 10% weighting to cash.

Between them, these defensive positions have a total target position of 70%.

Low fees for a diversified portfolio

The cost of ASX ETFs is normally an important factor in returns, so I'll make a quick mention of the annual fee of this fund.

Considering the high level of diversification in this portfolio, I think the VDCO ETF's annual management fee of 0.27% is very reasonable.

Conservative returns

This ASX ETF is designed to lower risk, but that also means it may produce lower rewards over the long term.

The ETF was constructed in November 2017 and has experienced a low interest rate environment during that time, reducing the returns from its defensive assets. It also suffered from the bond sell-off in 2022 amid the rising interest rate environment. Since its inception in November 2017, this ASX ETF has only returned an average of 3.76% per annum.

But there are other options for cautious Aussies.

Another diversified Vanguard ETF called Vanguard Diversified Balanced Index ETF (ASX: VDBA) provides a 50/50 split between growth assets and income/defensive assets. Since its inception in November 2017, the VDBA has returned an average of 5.5% per annum.

Of course, a third option would be for investors to mix and match how much in defensive ASX ETFs they want to own themselves. Two ETF options include Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND), which are local and global funds.

While the VDCO ETF is the most invested in bonds, it hasn't performed well in recent years, and its setup didn't protect investors from capital declines during 2022. As a relatively young investor, I'm more drawn to investing in shares for the long term because of the stronger return and compounding potential.

The post Is this the best Vanguard ASX ETF for nervous investors? appeared first on The Motley Fool Australia.

However, investors who have a day job and a primary source of income usually invest very differently from those investors who are retired and rely on passive dividend income to pay their bills. An investing mistake is a lot more difficult to bounce back from when you don't have a regular salary to patch over your portfolio's cracks.

So with this in mind, today let's discuss how to prepare your ASX share portfolio for the transition to retirement.

Three steps to prepare an investment portfolio for the retirement transition

Prioritise defensive ASX dividend stocks

Many investors love owning ASX shares that are growing fast and have delivered pleasing share price gains. While the likes of Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC), for example, have done very well for investors in recent years, these stocks are arguably less suited to a retiree.

That's because their share prices tend to be relatively volatile, making regular sales a little difficult. Not to mention, they don't tend to pay much in terms of dividend income (in Xero's case, none).

As such, if one is approaching retirement, one might consider transitioning away from growth shares and into more defensive dividend payers that supply a more reliable paycheque.

Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are all examples of stocks that have managed to keep their dividends flowing throughout the economic cycle.

Maximise your franking credits

Franking credits are great for any ASX investor. But they can be particularly useful for retirees. Depending on your own personal tax and superannuation circumstances, it's possible that you'll be able to get a cash refund for your franking credits upon retirement instead of the standard tax break.

With that in mind, it is probably a good idea for most retirees to prioritise fully franked dividend income.

Most ASX 200 shares pay franked dividends. But some popular stocks don't, for various reasons. So, if you're approaching retirement, it might be worth considering whether to swap out stocks like Scentre Group (ASX: SCG) or Transurban Group (ASX: TCL), which usually don't attach meaningful franking credits to their dividends.

To illustrate, right now, Telstra shares are trading on a dividend yield of 4.49%, while Transurban is offering 4.56%. Even though Transurban's yield is nominally higher, Telstra's full franking credits will probably make it a better income investment for a retiree (assuming these yields hold, of course).

Look to alternative asset classes as retirement investments

As we mentioned earlier, a key consideration for any retiree is that investment mistakes are harder to endure.

ASX shares are the asset class that has traditionally delivered the highest returns over long periods of time.

However, given most retirees' reduced tolerance for risk, permanent capital loss, and income volatility, it might be worth considering increasing exposure to 'safer' asset classes as retirement investments.

Cash and government bonds are usually considered safer investments than ASX shares when considering the risk of capital losses. With interest rates at decade-highs, these investments will currently pay you a lot more to hold them, too.

Exchange-traded funds (ETFs) allow easy access to these asset classes. Two popular examples are the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) and the iShares Core Cash ETF (ASX: BILL).

The post 3 steps to prepare an investment portfolio for transition to retirement appeared first on The Motley Fool Australia.

If readers aren't sure what bonds are, they should read the linked explainer. Basically, it's investing in a slice of the debt issued by a government or company, which will then pay interest over the term of the loan/bond.

Plenty of bonds have gone through the adjustment pain of higher interest rates. Many bond prices are lower than they were two years ago, pushing the yield of that bond to be higher and comparable with similar assets for similar terms.

Bonds weren't an attractive investment during the period of ultra-low interest rates because the income return on offer was really weak.

But, there are (at least) two good reasons why fixed income ASX ETFs could be a good buy right now.

Better income yields

There are a number of options that investors can choose on the ASX. The three ETFs I'm going to mention are offerings from Vanguard, one of the world leaders in providing cheap ETFs.

Vanguard Australian Government Bond Index ETF (ASX: VGB) provides exposure to Australian government bonds, both federal and state. This ETF now has a yield to maturity of 4.8%, which is a very attractive rate of return considering government bonds are meant to be the safest asset class.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF) provides exposure to a mixture of Australian federal and state government bonds, as well as investment-grade corporate issuers. This fixed income ASX ETF has a yield to maturity of 4.95%.

Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) provides exposure to bonds from governments, government-owned entities and investment-grade corporates. There are a total of 2,910 issuers with this portfolio. The yield to maturity of this one is 4.44%.

Interest rates have peaked?

The capital value of bonds has suffered over the past two years because of rising interest rates. But, the risk of capital losses could be reducing significantly with interest rates in the US and perhaps Australia at their peaks.

If interest rates have peaked, it could make the capital value of bonds very attractive.

In fact, the next move by the US Federal Reserve could be a cut, though investors may need to wait a while for that move.

If interest rates do start falling then this could turn into capital growth for the bond price, while investors also get a solid level of passive income.

Foolish takeaway

I do think it's a good time to look at bonds because the outlook for both income and capital growth is promising. However, I'm not looking to invest with my own portfolio because I think individual ASX shares have a stronger upside potential if they do well.

The post Are fixed income ASX ETFs a good buy right now? appeared first on The Motley Fool Australia.

As a reminder, bonds are a form of debt that a company or government may issue to, for example, pay for a project. The investors usually get paid interest during the length of the bond term.

There are three reasons why I prefer ASX dividend shares over bonds, which I'll now explain.

Stronger yield potential

Bonds are now offering investors a stronger yield thanks to the higher interest rate environment by central banks such as the US Federal Reserve and the Reserve Bank of Australia (RBA).

For example, at the end of August, the Vanguard Australian Government Bond Index ETF (ASX: VGB) had a yield to maturity of 4.07% and the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) had a yield to maturity of 4.2%. We'd have to look at 'riskier' countries and businesses to get a materially better income return.

A yield of 4% is not bad at all, but with ASX dividend shares we can get much better yields, particularly if franking credits are involved.

For example, in FY23, Telstra Group Ltd (ASX: TLS) paid a grossed-up dividend yield of 6.3% and Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES) paid a grossed-up dividend yield of 5.1%. These are the sorts of businesses that could be around for many years to come.

Better capital growth potential

When a bond term ends, investors are meant to receive the value of the bond back. For example, if the bond has a principal amount of $100, they're meant to get $100 back at the maturity date. To me, that limits the amount of capital return potential, aside from interest rate changes. Any valuation benefits that interest rate cuts give bonds should, theoretically, also help the valuation of ASX dividend shares.

Investors may be able to buy a bond at a discount to its underlying value, but the underlying value isn't really going to change.

With (good) ASX dividend shares, we're hoping to see profit growth as they deliver on growth plans, benefit from population growth, increase prices, or however else they plan to grow earnings.

Profit is one of the main ways that investors value a business, and long-term profit growth can send the share price higher over time.

For example, in the last five years, we've seen the Wesfarmers share price lift around 50%, the Telstra share price has gone up more than 20% and the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has climbed 32%.

Income growth

Profit growth can help grow the income payments to shareholders. Bonds typically offer investors a fixed level of interest income, so there's no organic growth potential there.

I like businesses growing profit because it means that investors can get a combination of growing dividends and hopefully share price growth.

For example, in the latest result, Telstra grew its annual dividend per share by 3% and Wesfarmers increased its annual dividend per share by 6.1% to $1.91.

The post Why I prefer buying ASX dividend shares over bonds appeared first on The Motley Fool Australia.

Many ASX investors would be familiar with some of Vanguard's popular exchange-traded funds (ETFs). Indeed, the Vanguard Australian Shares Index ETF (ASX: VAS) remains the most popular ASX ETF on our share market today.

But until now, Vanguard has not been directly involved in the Australian superannuation industry. Until a few years ago, the company did offer its products indirectly through other super providers. But the company has ditched these avenues in preparation for its entry into the market itself.   

Vanguard primed to announce new superannuation products

This may have just gotten one step closer too. According to reporting in The Australian today, Vanguard has just received regulatory approval to "launch a suite of superannuation products" in the Australian market from the Australian Prudential Regulation Authority (APRA).

Vanguard's Australian chief executive, Daniel Shrimski, told The Australian that "our journey is just beginning… We think the simplicity, the low cost and the (investment) expertise that we will provide will resonate".

As a well-known provider of ETFs, many investors might assume that these ETFs may play a major role in what Vanguard will offer super customers.  

That would be a safe assumption, according to Shrimski. He said that Vanguard's products will be "more fund-based but we think ETFs will certainly be a part of the longer-term solution".

So what ETFs might Aussies be able to invest in under a Vanguard superannuation product? Well, the Vanguard Australian shares ETF would be a good start.

As Vanguard's most popular product, and the only one that covers either the S&P/ASX 200 Index (ASX: XJO) or the S&P/ASX 300 Index (ASX: XKO), it would be a safe bet that VAS is among the flagship ETFs that Vanguard will offer up.

Which Vanguard ETFs could be on offer?

But the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) would be another strong candidate. VSO covers around 210 of the smaller shares on the ASX.

Forget BHP Group Ltd (ASX: BHP) and the big four banks. VSO's largest holdings include companies like Lynas Rare Earths Ltd (ASX: LYC), Carsales.com Ltd (ASX: CAR) and Bendigo and Adelaide Bank Ltd (ASX: BEN).  

That could complement Vanguard's other ASX offer, the Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) nicely. VLC is an ETF that covers only the top 20 largest companies on the ASX.

Income investors might appreciate the inclusion of the Vanguard Australian Shares High Yield ETF (ASX: VHY).

But Vanguard has many other ETFs that look to shares beyond our shores.

The Vanguard MSCI International Shares Index ETF (ASX: VGS) is another probable shoo-in. This is Vanguard's flagship international shares ETF. VGS covers almost 1,500 individual shares hailing from more than 20 different advanced economies.   

These include Canada, France, Japan, the United Kingdom and Germany. Saying that, it is heavily dominated by US tech giants like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN).

Looking outside the ASX and the US

But we could also see the Vanguard FTSE All-World ex-US ETF (ASX: VEU) offered as well. This fund is similar to VGS, but excludes US shares. In their place, many emerging economies are represented, including India, Brazil, and Saudi Arabia. Overall, this ETF has more than 3,500 individuals holding within it.  

Ethically-minded investors might appreciate if there was the option to select the Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG).

More regionally specific ETFs from Vanguard are also possibilities for inclusion in its superannuation offerings. This includes the Vanguard FTSE Europe Shares ETF (ASX: VEQ), the Vanguard FTSE Asia ex-Japan Index ETF (ASX: VAE) and the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

Other Vanguard ETFs covering different asset classes outside shares could also be potentially available. These might be the Vanguard Global Infrastructure Index ETF (ASX: VBLD). As well as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) for access to fixed-interest bond investments.  

So it's likely that new Vanguard super customers will have a plethora of ETFs to choose from when the company eventually brings its new superannuation products online. We don't yet know when this will be. But with Vanguard now gaining regulatory approval, it's probably going to be sooner rather than later.  

The post Could these ASX ETFs soon play a bigger role in Aussie super funds? appeared first on The Motley Fool Australia.

At least three ASX ETFs have reached new 52-week lows just today. So let's check them out and see what they might have in common.

3 ASX exchange-traded funds hitting 52-week lows today

The first ASX exchange-traded fund hitting a new 52-week low today is the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). This fund from popular provider Vanguard touched a low of $45.62 a unit today, which is getting quite far from its 52-week high of $51.44. VAF is a bond fund. It primarily holds investment-grade Australian government bonds, issued by both the federal and state governments, but also has some other fixed interest investments from corporations and local governments thrown in. 

Another ETF to check out is the iShares Core Composite Bond ETF (ASX: IAF). This exchange-traded fund is very similar to VAF in nature. It also holds mostly Australian government bonds, with a similar mix of state, local and corporate bonds thrown in. IAF units have also hit a new 52-week low today. This ETF's units hit $103.15 each this morning, again a ways away from this fund's 52-week high of $115.31.  

Finally, we have the BetaShares Australian Investment Grade Corporate Bond ETF (ASX: CRED). This fund is a little different to the above two, in that it only invests in corporate bonds rather than government bonds. This is designed to increase the yield available to investors, albeit without that 'risk-free' tag that comes with a Treasury. But unfortunately for investors, CRED is our third ASX exchange-traded fund to hit a 52-week low today. This ETF touched $23.18 a unit earlier today, putting even more distance between its 52-week high of $27.61. 

Why are bond ETFs being sold off?

So you might have noticed that these three exchange-traded funds are all fixed-interest or bond ETFs. This is not a coincidence then, it seems. Bonds typically rise in value when interest rates go down. That's because their already-set yield becomes more attractive than newer bonds. But the opposite is also true when interest rates rise, and this looks to be occurring today. 

Fresh from the all-time low interest rates we have seen around the world, the US Federal Reserve raised its rate for the first time in years last month. Just yesterday, our own Reserve Bank of Australia (RBA) signalled that rates might be rising here sooner than it initially flagged. 

Thus, it might come as no surprise that bond and fixed-interest ASX exchange-traded funds are currently being sold off. 

The post 3 ASX exchange-traded funds slumping to 52-week lows today appeared first on The Motley Fool Australia.

But you might hear of some investors constructing a 'balanced' portfolio, diversifying their S&P/ASX 200 Index (ASX: XJO) shares with other assets like fixed-interest government bonds, property, or even gold. You might have even come across the concept of the '60/40 portfolio' (60% shares, 40% bonds) that is popular over in the United States. So is this a 'must-do'? Let's check it out.

Is balance always a good thing?

Well, to understand why some investors advocate for a 'balanced' portfolio, you have to understand what the underlying goal is. For these investors, it's balancing potential growth with volatility. Most of us don't really like to see the values of our share portfolios bounce around every time there is market volatility. Most of us would prefer (even if it's deep down) to see our portfolios rise in a perfectly linear way. But that's not what the share market gives us, at least most of the time. Now some investors enjoy this volatility, and the opportunities to buy shares 'on sale' that it can bring. Others hate it, and may even panic when they see their shares drop in value.

The latter investor is what a balanced portfolio is designed to cater for. The premise is simple – expose your wealth to long-term growth assets like shares, but balance the shares out with another asset class that provides lower returns, but increased stability.

In this way, you are aiming for the best of both worlds – growth with less volatility.

Diversification isn't always free

However, since there is no such thing as a free lunch, there is always a trade-off. You usually can't expect a portfolio that invests in stabilising asset classes to perform as well as a portfolio that's geared for maximum growth. It's one, the other, or a middle road between the two.

For some investors, this might be a sound idea. If you hate the idea of seeing your portfolio lose money, or experience mental distress during periods of severe market volatility, like a crash, then perhaps diversification into different asset classes may be a good idea. There are many ASX exchange-traded funds (ETFs) that can be used for this purpose. Some include the ETFS Physical Gold ETF (ASX: GOLD), or the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). But if you're an investor who wants to maximise returns, with little regard for volatility, then there might not be any reason to look to diversify. Shares, including ASX shares, are one of the (if not the) best-performing asset classes if you take a long time horizon. The ASX 200 has beaten the long term returns of government bonds and gold since Federation, and handily so.

So like most things in life, there is no 'right answer' here when it comes to portfolio diversification. Only what's best for you, your portfolio, your investing goals, and risk tolerance.

The post Do ASX share portfolios provide enough diversification? appeared first on The Motley Fool Australia.