Vanguard said Aussie investors have ploughed $2,536 million into the Vanguard Australian Shares Index ETF (ASX: VAS) this year.

VAS is the largest ASX ETF on the market with 22,463.36 million in funds under management as of 30 September, according to ASX data.

Vanguard said Australians invested a record $36.8 billion into ASX ETFs over the first three quarters of CY25.

This is more than was invested over the entirety of 2024.

Cash inflows into Vanguard ETFs exceeded $11.9 billion over the first three quarters, giving the provider a 32% share of new investment.

Let's check out the five most popular Vanguard ETFs of the year so far.

5 most popular Vanguard ASX ETFs this year

1. Vanguard Australian Shares Index ETF (ASX: VAS)

The ASX VAS attracted $2,536 million in cash flow over the first three quarters of 2025.

The VAS ETF seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO), which represents the 300 largest companies by market capitalisation.

This includes ASX blue-chip shares like Commonwealth Bank of Australia Ltd (ASX: CBA) and BHP Group Ltd (ASX: BHP) at the top of the index, and small-caps like Polynovo Ltd (ASX: PNV) and real estate investment trust (REIT) Dexus Industria REIT (ASX: DXI) at the bottom.

2. Vanguard MSCI Index International Shares ETF (ASX: VGS)

The ASX VGS brought in $1,882 million in new investment this year.

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

ASX VGS gives investors broad geographical diversification through its exposure to about 1,300 international shares across 23 nations.

US shares dominate the portfolio at 74%, followed by Japan 6%, Canada 3%, and the UK 3%.

The ASX VGS is focused on large-cap shares at 81% of the portfolio. The ETF's top holdings are Nvidia, Apple, and Microsoft.

3. Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND)

VBND ETF brought in $1,499 million in new investment over the first three quarters.

The ETF tracks the Bloomberg Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars.

The ETF provides exposure to high-quality, income-generating bonds issued by governments, government-owned or guaranteed entities, and corporations from around the world.

The investments are predominantly rated BBB- or higher by Standard & Poor's or an equivalent ratings agency. 

Vanguard says this ASX ETF suits buy and hold investors who want regular income from a diversified portfolio of fixed interest securities.

4. Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

The ASX VGAD attracted $1,136 million in cash flow over the first three quarters.

VGAD is an Australian-hedged version of the VGS ETF, so its returns are relatively unaffected by currency fluctuations.

5. Vanguard Australian Shares High Yield ETF (ASX: VHY)

Aussies invested $1,116 million in ASX VHY over the first three quarters.

VHY is the largest dividend-focused ETF on the market.

It seeks to mirror the FTSE Australia High Dividend Yield Index, investing in 75 companies across all sectors excluding REITs.

VHY ETF's top holdings are currently BHP shares, CBA shares, and National Australia Bank Ltd (ASX: NAB).

ASX VHY has a history of providing strong dividend income and impressive capital gains over the long term.

The post 5 most popular Vanguard ASX ETFs among Aussie investors in 2025 appeared first on The Motley Fool Australia.

On Tuesday, we saw scores of internationally-focused ETFs reach either 52-week highs, multi-year highs, or all-time record prices.

Some of the most popular ETFs were among them, such as iShares S&P 500 ETF (ASX: IVV), Betashares Nasdaq 100 ETF (ASX: NDQ), Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X FANG+ ETF (ASX: FANG), and iShares Global 100 AUD ETF (ASX: IOO).

The ETFs soared due to ongoing strength in the US market, with the S&P 500 Index (SP: .INX) smashing another all-time high this week.

Over the years, Aussies have enthusiastically invested billions in ASX ETFs to gain easy, diversified exposure to international shares.

This trend continues today, with a record $5.28 billion invested in July alone.

Next week, scores of ETFs go ex-dividend, which means time is running out for investors who may want to top up their holdings.

To receive an ETF's next dividend, you must buy or already own the ETF before its ex-dividend date.

We provide a sample of ETFs going ex-dividend below.

If you want to buy any of these ETFs to score their next dividend (or 'distribution') payments, you'd better be quick!

24 ASX ETFs with ex-dividend dates next week

At this stage, most providers have only released estimated distribution amounts. They will release finalised figures in due course.

The post 24 ASX ETFs going ex-dividend next week appeared first on The Motley Fool Australia.

Diversification can be a double-edged sword. All investors acknowledge the importance of hedging risks associated with single companies, markets, and currencies. After all, none of us knows what the future might have in store for us. However, ASX investors can also be in danger of 'over-diversifying', which can lead to sub-optimal returns.

Saying that, there are investors out there who prioritise capital protection over maximising their returns. For those investors, let's discuss how you can build the ultimately diversified $100,000 portfolio using only ASX ETFs today.

Building a $100,000 ASX ETF portfolio for ultimate diversification

Getting to the ultimate level of diversification, we will need to spread out our portfolio across multiple asset classes, not just stocks.

However, in recognising the need to balance a portfolio between capital protection and meaningful returns, we will still be allocating 70% of our portfolio to stocks. For investors who are uncomfortable with this level of risk, you can always decrease that. Today, though, we'll use that as a benchmark.

Kicking things off, we'll allocate $20,000 to the Vanguard Australian Shares Index ETF (ASX: VAS). This index fund tracks the largest 300 shares on our market. That's everything from the big four banks and BHP Group Ltd (ASX: BHP) to Harvey Norman Holdings Ltd (ASX: HVN) and Coles Group Ltd (ASX: COL).

ASX shares have historically delivered compelling returns. Plus, you'll get some additional benefits from the franking credits that VAS provides.

Next, we'll supplement VAS with an additional $20,000 allocated to the iShares S&P 500 ETF (ASX: IVV). This index fund tracks the S&P 500 Index (SP: .INX), which, similarly to VAS, tracks the largest 500 shares listed on the US markets. The American stock market houses some of the world's best companies.

I think it would be negligent to ignore stocks of the calibre of Microsoft, Amazon, Alphabet, Netflix, Mastercard, Coca-Cola, and other world-dominating businesses that call the United States home. Exposure to the US dollar, although currently unfashionable, is also still prudent.

ASX ETFs for EAFE and emerging markets

We'll give a further $15,000 each to both the iShares MSCI EAFE ETF (ASX: IVE) and the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

These two ASX ETFs give us even more diversification by adding exposure to stocks listed in Europe, Asia, and emerging markets.

The iShares EAFE ETF tracks markets across Europe, Asia, and the Far East (EAFE). Most of its portfolio comes from Japan, the United Kingdom, France, and Germany. Its top holdings include ASML Holdings, Nestle, Shell, and Toyota.

Meanwhile, the Vanguard Emerging Markets ETF holds stocks from emerging markets, including China, India, Taiwan, Brazil, Saudi Arabia, and South Africa.

Both of these ETFs hold companies that aren't too prominent in most major ASX ETFs. As such, they add a healthy level of geographic and currency diversification to our portfolio.

So that's the 70%. What about the other 30%?

Bonds and precious metals

If you want true diversification for capital protection, you should look beyond stocks as an investment. So, for our last two ASX ETFs, we'll be adding exposure to bonds and gold.

These asset classes have traditionally offered returns uncorrelated with share markets. As such, they can be useful in a portfolio during stock market crashes and other disruptive events in global markets.

For bonds, we'll be allocating $15,000 to the Vanguard Global Aggregate Bond Index ETF (ASX: VBND). This fund holds bonds issued by a variety of governments around the world, as well as by some investment-grade corporations.

It offers exposure to everything from US Treasuries to British Gilts and bonds issued by McDonald's, Coca-Cola, and even the Commonwealth Bank of Australia (ASX: CBA). Investors will probably appreciate the reliable income that a fund like this can provide.

Finally, we'll be putting our final $15,000 into the Perth Mint Gold Structured Product (ASX: PMGOLD). This exchange-traded vehicle allows investors to buy units that have a direct correlation with the price of gold in Australian dollars. Gold has always been used as a safe haven for investors, providing protection against inflation, currency erosion, and global geopolitical and economic uncertainty. Investors are also attracted to its finite supply and inherent value.

Gold pays no yield. Even so, it has been one of the best-performing asset classes in recent years, thanks to ongoing global uncertainty. If you want to achieve the ultimate level of diversification, it makes sense to have at least some exposure to precious metals like gold in one's portfolio.

The post Here's how I would build a $100,000 ETF portfolio for ultimate ASX diversification today 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.

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.

Investors put in the highest-ever amount of dollars into local ETFs in October, but some products fared far better than others.

A BetaShares report showed cash, bond and fixed interest ETFs featured prominently among the top 10 ETFs that saw the largest inflow of cash last month. 

This perhaps indicated some anxiety with investors about the US election result and sky-high share valuations.

Top 10 hottest Australian ETFs

ETF pioneer Vanguard dominated the top of the charts. 

Its Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND), Vanguard Msci Index International Shares Etf (ASX: VGS), and Vanguard Australian Fixed Interest Index ETF (ASX: VAF) collectively brought in about $478 million for the company.

But the most attractive fund of October, iShares Core S&P/Asx 200 Etf (ASX: IOZ), alone pulled in a stunning $326 million of investor funds.

Top 10 coldest Australian ETFs

At the other end of the charts, foreign assets seemed to go out of favour with Australian ETF investors.

The trend could be a validation of the successful suppression of COVID-19 in Australia while the northern hemisphere copped a third wave as it headed into the colder months.

iShares Edge MSCI World Multifactor ETF (ASX: WDMF), iShares MSCI South Korea ETF AUD (ASX: IKO), BetaShares US Dollar ETF (ASX: USD), iShares Europe ETF AUD (ASX: IEU) and Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX) all suffered significant outflows.

BetaShares itself had $34.8 million pulled out of its BetaShares Australian Resources Sector ETF (ASX: QRE), which was the 2nd highest amount.

It's often hard to pinpoint the exact reasons for outflows from a particular ETF, BetaShares head of strategy Ilan Israelstam told The Motley Fool.

"Investors will have their own motivations for increasing or reducing their positions," he said.

"On QRE in particular, our suspicion is that most of the selling was due to investors taking profits, given QRE was up around 34% from its lows in March."

Betashares and AMP Limited (ASX: AMP) recently closed down a trio of ETFs they jointly operate due to a lack of investor interest. Those funds will trade on the ASX for the last time on 4 December.

The last two months have been the only time in history that the Australian ETF industry saw more than $2 billion come inwards each month.

Local ETFs collectively manage $73.8 billion, which is another all-time record.

The post 10 hottest (and coldest) Aussie ETFs right now appeared first on The Motley Fool Australia.

In practice, this means you should have a basket of shares across a spread of industries and sectors, rather than a few large holdings in similar stocks. The theory is that by diversifying, your portfolio with be better able to withstand market volatility as the returns on the different shares will not be perfectly correlated.

The ASX has more than 2,000 shares available to trade, but is just a portion of the global investment universe. The New York Stock exchange offers 2,400 companies to trade, the NASDAQ more than 3,000. In the United Kingdom, the London Stock Exchange features more than 2,000 companies.

To diversify further, other asset classes such as property, bonds, and even gold or other commodities could be added to the mix. If these assets have a less than perfect correlation to your existing investments, you should reduce the risk of your portfolio even more.

The issue is how to achieve diversification on limited funds. It is just not practical to hold parcels of shares below a certain limit. Trading costs must also be taken into account.

So, with so many investment options, how can you diversify with $20,000?

Exchange traded funds (ETFs) are a great way to maximise diversifying power. Running the gamut from gold ETFs backed by physical bullion to ETFs tracking some of highest market capitalisation companies in the world, ETFs can offer both broad and specialised exposure. ETFs are traded on the stock market just like shares, and give the holder an interest in the assets of the fund, which could be gold, shares, bonds, or something else. 

Australian shares

VanEck Vectors Australian Equal Weight (ASX: MVW) covers approximately 75 blue-chip companies weighted equally. The fund aims to track the MVIS Australia Equal Weight Index before management costs. Management costs are 0.35% per annum. The index includes the largest and most liquid companies on the ASX with diversification across securities and sectors. Returns over 5 years were 8.78% per annum as at 30 September.

At 30 September the fund held 86 securities and had a price-to-earnings (P/E) ratio of 17.95 with a dividend yield of 3.93%. The number one holding was Afterpay Touch Group Ltd (ASX: APT), which accounted for 1.31% of holdings. Other top 10 holdings included Iluka Resources Ltd (ASX: ILU), Goodman Group (ASX: GMG), Northern Star Resources Ltd (ASX: NST) and Santos Ltd (ASX: STO).

US Shares

iShares S&P 500 ETF (ASX: IVV) tracks the performance of the S&P 500 index (before fees and expenses) providing broad exposure to large capitalisation US stocks. Management fees are 0.04% per annum and and distributions are made quarterly. As at 30 September, the fund had provided annual returns of 10.79% over 5 years and had a P/E ratio of 20.98.

Top 10 holdings as at 30 September include Microsoft (4.27%), Apple (3.83%), Amazon (2.90%), Facebook (1.72%), Berkshire Hathaway (1.64%), JP Morgan Chase & Co (1.51%) and Proctor & Gamble (1.25%). iShares offers both hedged and unhedged versions of the ETF, with the hedged version known as iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV). The hedged version minimises the impact of Australian dollar volatility on returns and has a management fee of 0.10%. 

Property

VanEck Vectors Australian Property ETF (ASX: MVA) is designed to capture the performance of Australia's property market. The Fund tracks the performance of the MVIS Australia A-REITs Index, which includes the largest and most liquid real estate investment trusts. As at 30 September, 5-year returns were 9.83% per annum and the fund had net assets of $240 million.

The fund holds 12 property securities including Goodman Group (ASX: GMG), Charter Hall Group (ASX: CHC), Mirvac Group (ASX: MGR), Vicinity Centres (ASX: VCX), and Cromwell Property Group (ASX: CMW). The dividend yield of the fund was 4.55%, as at 30 September, and the P/E ratio was 15.11. Management fees are 0.35% per annum and dividends are paid twice annually. 

Gold

Betashares Gold Bullion ETF – Currency Hedged (ASX: QAU) is backed by physical gold bullion held in a London vault. The fund hedges its US dollar exposure to allow for transparent exposure to the price of gold. Fund returns over the year to 30 September were 23.84%.

Betashares discloses the actual gold holdings backing the fund and value of the fund's assets daily on the fund website. Details of each gold bar including serial number, refinery, purity, weight, and year of casting are available. Units in the fund can be bought and sold on the ASX like any share, providing for far greater liquidity than physical gold. Management costs are 0.59% per annum.

Bonds

Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND) provides exposure to fixed income securities issued by government entities and investment-grade corporates from around the world. The fund seeks to track the Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australia dollars before fees, taxes and expenses. Management fees are 0.20% per annum.

Investments by the fund are predominantly rated BBB- or higher by S&P or equivalent ratings agencies. Distributions are made quarterly and the fund's weighted average coupon is 2.6%. Top 10 holdings include securities issued by the United States Treasury, Japanese Government, Federal National Mortgage Association, and republics of France and Italy. Distributions are made quarterly.

Foolish takeaway

Diversification can be achieved relatively cheaply with the aid of a few well-chosen ETFs to round out your portfolio. ETFs can provide exposure a single commodity or as many as hundreds of securities depending on your pick. With $20,000 (or even $10,000) and the ETFs listed you could gain exposure to 86 Australian stocks, more than 500 US stocks, a dozen Australian property securities, gold, and fixed income securities issued by a variety of global government and corporate issuers.

Which ETFs you pick and how much capital you allocate to each will depend on your investing style and risk tolerance. Those with lower risk tolerances may prefer to devote more funds to fixed income, gold, and property ETFs. Those with higher risk tolerances will likely prefer a heavier weighting towards shares, both international and domestic. Either way, the strategic use of ETFs provides a cost effective method of increasing the diversification of your portfolio.

The post How to diversify your ASX portfolio for less than $20,000 appeared first on The Motley Fool Australia.