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.

While it's true your ETF isn't going to double in value in one day like a speculative penny stock, funds can still far outpace indexes like the S&P/ASX 200 Index (ASX: XJO). 

To prove this point, here are three fundamental ASX ETFs that have beaten the ASX 200 so far this year. For context, the ASX 200 is up 7.95% YTD. 

iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)

The first ASX ETF with strong returns so far in 2025 is ISO ETF. 

The fund aims to provide investors with the performance of the S&P/ASX Small Ordinaries Accumulation Index, before fees and expenses. 

The index is designed to measure the performance of small-capitalisation Australian equities included in the S&P/ASX 300 index, but not in the S&P/ASX 100 index.

It is a very balanced ETF, made up of roughly 200 holdings, with none representing more than 1.85%. 

It has risen an impressive 15.72% so far in 2025 – almost doubling the returns of the ASX 200. 

Vanguard Ethically Conscious Australian Shares Fund (ASX: VETH)

As the name suggests, this fund provides exposure to the FTSE Australia 300 Choice Index. 

The index excludes the securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

The index also excludes companies that the index provider determines are involved in controversial conduct related to principles of the United Nations Global Compact.

The fund has risen 11.43% YTD. 

It has a significant exposure (more than 27%) to the big four bank shares. At the time of writing is made up of 234 total holdings. 

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

This fund provides exposure to small companies listed on the Australian Securities Exchange. 

The sectors in which the ETF invests include industrials, materials and consumer discretionary. 

VSO ETF offers potential long-term capital growth, which can be typical of the small company market sector.

So far in 2025, the fund has risen 12.98%, far ahead of the ASX 200 index. 

Since its inception in 2011, it has provided more than 10% annualised returns. 

It is currently made up of 184 holdings, with no holding representing more than 2.35% of the fund. 

The post 3 Australian focused ASX ETFs racing ahead of the ASX 200 this year 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.

This strategy is sometimes referred to as ESG investing –  based on environmental, social, and governance considerations. 

Essentially, these strategies involve advancing particular social or ethical causes and generating financial returns. 

Sometimes this might mean actively investing in companies that are engaged in a specific cause. 

Conversely, investors may choose to actively avoid companies that do not align with their views on environmental or social causes. 

For example, you may avoid companies engaged in manufacturing weapons, tobacco etc.

One way to pool these companies that fit into a category is through an ASX ETF.

Ultimately, investors still want to see their portfolio grow. So let's look at how some of the most popular ethical ETFs have performed so far this year. 

Betashares Australian Sustainability Leaders ETF (ASX: FAIR)

This fund aims to track the performance of an index (before fees and expenses) that are selected on the basis of both positive and negative screening.

This includes Australian companies that are deemed not to have direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

The Fund's methodology also preferences companies classified as 'Sustainability Leaders'. This is based on their involvement in business activities aligned to the United Nations Sustainable Development Goals.

Unlike other ethical funds, the FAIR ETF is focussed exclusively on Australian companies. 

It is currently made up of 79 holdings. This includes blue-chip companies like Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS). 

It has performed well so far in 2025, rising 5.20% in that span and more than 14% over the last year. 

Vanguard Ethically Conscious Australian Shares Fund (ASX: VETH)

Offering slightly more diversification in its portfolio with 234 holdings, this ETF uses an exclusion methodology. 

The index excludes companies that the index provider determines are involved in controversial conduct related to principles of the United Nations Global Compact.

For example, securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

Its largest holding by a significant margin is Commonwealth Bank of Australia (ASX: CBA). The big four bank makes up more than 13% of the fund. 

It has already risen 7.52% this year – a strong return for investors. 

Vanguard Ethically Conscious International Shares Index Etf (ASX: VESG)

This fund, also from Vanguard, is essentially the international version of the previous fund. 

The ETF's index excludes securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

The index also excludes companies that the index provider determines are involved in controversial conduct related to principles of the United Nations Global Compact.

This is a heavily diversified, globally focussed fund that includes more than 1,400 holdings. 

However, it is largely exposed to the US, with more than 70% of its holdings being made up of American companies. 

This includes companies like Microsoft, Apple and Amazon. 

So far in 2025 the fund has risen just 1.47%. 

The post Which ethical ASX ETFs have performed the best in 2025? 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.

What do they have in common? They are all examples of impact investing, a strategy whereby investors focus on advancing particular social or ethical causes while still being able to generate financial returns. This investment style is undoubtedly on the rise.

The 2023 ASX Investor Study showed that 31% of investors were environmentally, socially, and governance (ESG) conscious. The report also found that 23% of investors bought or sold an investment based on environmental factors during that year. 

In 2024, ethical ASX ETFs showed investors that they can have their cake and eat it, too, enjoying strong gains through ethical funds. Let's take a closer look.

Ethical shmethical

Making financial decisions with the goal of contributing positively to the planet is a noble cause. It's also important to recognise how these ETFs are actually constructed. 

Different ethical ETFs use different strategies. Some ETFs actively include specific types of holdings to build their portfolio, such as targeting climate leaders in a certain industry.

Other ETFs use a strategy of actively excluding specific companies based on established criteria. 

For example, an ETF may exclude companies that negatively impact the environment. Or it might exclude companies linked to fossil fuels, nuclear power, tobacco or weapons. 

I'm not here to rain on anyone's parade, but I do think it's important for investors to decide for themselves how they interpret 'ethical' and 'sustainable' when it comes to their personal investment choices. 

With that in mind, these ethically conscious ETFs had strong gains in 2024. 

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)

One-year return: 28.9%

This ASX ETF excludes companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons.

Due to its screening process, it has a large exposure to the US technology sector. Its largest holdings are Apple, Nvidia Corp, Microsoft and Amazon. 

These holdings are likely to have influenced its strong performance in 2024, given this year's monster rally in tech and artificial intelligence shares.

This ETF might particularly interest investors looking to invest in some of the largest, ethically conscious companies based outside Australia. 

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

One year return: 23.4%

The ETHI ETF aims to track the performance of an index that includes a portfolio of large global stocks identified as climate leaders. Similar to other ethical ETFs, ETHI excludes companies with direct or significant exposure to fossil fuels, gambling, tobacco, animal cruelty and weapons. 

This ASX ETF then goes a step further by excluding companies with human rights concerns or gender inequality. For example, the fund excludes McDonald's because the "majority of revenue comes from the sale of junk food" and Tesla as it's "implicated in workplace relations-related controversies".

The fund consists of the 200 largest companies that fit this criteria. Its strong performance in 2024 was influenced by strong growth from significant holdings such as Apple, NVIDIA, Visa, and Mastercard.

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)

One year return: 12.01%

The VETH ETF excludes the securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

It has a large exposure to the Australian financial sector, with the Big Four ASX banks comprising more than 25% of holdings. This has largely influenced its strong returns this year.

VETH might not consist solely of companies dedicated to sustainability or climate action, but it may interest investors looking for significant exposure to ASX bank shares while avoiding specific mining or gambling companies that may be included in other ASX 200 or 300 tracking ETFs. 

The post Which 3 ethical ASX ETFs performed the best in 2024? appeared first on The Motley Fool Australia.

Investors who own any of the 23 Australian Vanguard ETFs, including the Vanguard Australian Shares Index ETF (ASX: VAS), will receive their dividend payments on 16 October.

According to the calendar, the ex-dividend date is 1 October, and the record date is 2 October.

Investors who own the US Vanguard ETF, the Vanguard US Total Market Shares Index AUD ETF (ASX: VTS), will receive their dividend payment on 24 October.

According to the calendar, the ex-dividend date is tomorrow, 27 September. The record date is 30 September.

The dividend amount for the VTS ETF is 87.07 US cents. Vanguard says this will be converted into Australian currency on the foreign exchange date, which will be 21 October.

How much will investors in Australian Vanguard ETFs get?

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

The VAS ETF, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay 103.3194 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) is one of the best-performing Australian shares exchange-traded funds. It will pay 104.4812 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 36.9679 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 61.2972 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to 1,500 listed companies from developed countries outside Australia. This ETF will pay 28.8055 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP), which seeks to track the performance of the S&P/ASX 300 A-REIT Index before fees, will pay 41.8085 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 86.0026 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 24.1001 AU cents per unit. The VISM ETF seeks to track the performance of 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 the Australian ETFs above.

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

The post Own these popular Vanguard ETFs? Here's the latest on your dividends appeared first on The Motley Fool Australia.

Focusing on ETFs that prioritise dividends can be particularly appealing for passive income seekers. Investing in Vanguard ASX ETFs can be a practical way to generate passive income through distributions while enjoying the diversification benefit.

Let's explore the current distribution yields of popular ETFs and other relevant factors.

7 ASX ETFs with above 3% distribution yields

Investors should check the latest dividend yield data to determine which Vanguard ASX ETF currently yields the highest passive income. This information is regularly updated and can be found on Vanguard's official site or through your brokerage platform.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) truly lives up to its name by offering the highest yield of 5.86%. As my colleague Tristan highlighted, the VHY ETF also achieves diversification by capping the proportion to any one industry to 40% of the ETF.

Investors may also want to consider other Vanguard ASX ETFs that offer yields higher than 3%. Here's a list of ETFs that could be excellent options for generating passive income.

These ETFs can offer exposure to specific investment sectors or regions without sacrificing income flow.

Other considerations

When choosing an ETF based on yield, it's essential to consider other factors such as risk tolerance, expense ratios, and diversification.

Evaluating your risk tolerance involves understanding whether the ETF's risk profile aligns with your investment goals. For example, ETFs focused on high-growth companies or international shares may have higher volatility, which may or may not suit your financial objectives.

Expense ratios are another critical consideration. Comparing the expense ratios of different ETFs is important, as lower expenses can contribute to higher net returns. In the table above, I have provided this information under the 'fees' column for easy comparison.

Diversification is also key when selecting an ETF. Ensure that the ETF aligns with your overall portfolio diversification strategy. A well-diversified ETF can help mitigate risk and provide more stable returns over time, enhancing your passive income potential.

The post Which Vanguard ASX ETF yields the highest passive income right now? appeared first on The Motley Fool Australia.

So, let's take a look at which ETFs investing in Australian shares did best in 2023 based on total returns (that is, share price gains and dividend returns combined).

For the purposes of this article, we're focusing on ETFs that invest in Australian shares only, and with a defined investment strategy. That means we're excluding index-based and sector-based ETFs.

These rankings are based on data just released by the ASX.

The top 5 ASX ETFs for total returns in 2023

There is a clear theme among the best ETFs of last year — environmental, social, and corporate governance (ESG).

According to the data, here are the top five ETFs:

iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD) returned 11.51% in share price growth and distributions over the 12 months of 2023.

iShares Core MSCI Australia ESG Leaders ETF (ASX: IESG) returned 10.73% in 2023.

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) returned 9.98% in 2023.

Russell Investments Australian Responsible Investment ETF (ASX: RARI) returned 9.88% in 2023.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) returned 9.83% in 2023.

EGS shares represent companies with good environmental, social, and governance credentials based on certain criteria.

In this era of climate change and decarbonisation, investors are increasingly seeking to support companies that are doing their bit to save the planet, so ESG stocks are becoming more popular.

More about the No. 1 ETF

According to ETF provider Blackrock, the iShares S&P/ASX Dividend Opportunities ESG Screened ETF invests in up to 50 ASX shares that offer high dividend yields and meet certain sustainability tests.

They also have to meet diversification, profitability and tradability requirements.

The IHD ETF closed at $13.88 per share on Thursday, up 0.58% for the day.

Among the top 10 holdings of the IHD ETF are major miners like BHP Group Ltd (ASX: BHP), big four banks including Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Aurizon Holdings Ltd (ASX: AZJ), JB Hi-Fi Limited (ASX: JBH), and QBE Insurance Group Ltd (ASX: QBE).

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There are your index funds, of course. The most popular of these are ASX ETFs, proving our local preference for Australian shares. But there are also index ETFs covering US shares, international markets, and emerging markets too.

Other ETFs, such as those covering specific sectors, trends, or commodities have also flourished. These days, you can invest in funds that track everything from global cybersecurity companies to oil futures, and gold or silver.

But which ETFs will continue to grow the most over the next few years?

ETF expert points to ethical and responsible investing

ETF provider BetaShares has some ideas about that. BetaShares is one of the ASX's most prolific purveyors of exchange-traded funds.

BetaShares' boss Alex Vynokur was asked about the future of the ETF sector in a report in The Australian this week.

Vynokur identified the ethical and responsible investing sector as the one he reckons will experience the largest growth rates over the next few years. Vynokur estimates that ethical and responsible ETFs are set to explode by $50 billion by late 2028, and even thinks they could hit $100 billion by the end of the decade.

As of 31 March, these ETFs reportedly accounted for $10.1 billion in funds under management (up from $3.5 billion in 2021).

That's despite the best-performing ETFs in recent months and years being those that focus on sectors like resources and energy.

Here's some of what Vynokur said:

There's no doubt the last 12 to 18 months have been volatile for investors… The reality is that investors increasingly recognise there is no need to sacrifice their investment objectives over the long term to build a portfolio that aligns with their values…

While younger investors are perhaps considered the poster child for adoption of ethical and responsible ETFs, we're now seeing increasing adoption from a broad range of Australian investors, including self-managed super funds.

Why are ASX investors flooding into ethical ETFs?

Vynokur identified three reasons for his optimism for ethical and responsible ETFs. He named the growing number of investors who wanted to "align their portfolio with their values while also meeting their investment objectives" for one.

Secondly, he pointed to "the cost-effectiveness" of using ETFs in order to pursue a responsible and values-aligned portfolio.

Thirdly, Vynokur argued that the "growing range of asset classes" that an ETF can provide investors access to is also driving interest in exchange-traded funds in pursuing ethical and responsible investing.

BetaShares currently offers eight ethical/responsible ETFs, including the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) and the Ethical Diversified Growth ETF (ASX: DGGF).

Other ASX options in this space include the Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) and the iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD).

So it will be interesting to plot the rise of ethical and responsible ETFs over the next few years to see if their growth conforms to Vynokur's strong predictions.

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While the ETF underperformed the S&P/ASX 300 Index (ASX: XKO) in the past year, it still managed to deliver 15.3% before dividends.

So, let's grasp an understanding of what this ETF is exactly.

Investing in ASX shares without the baggage

ETFs are a popular way for investors to gain exposure to a specific sector, index, or thematic in a single transaction. One increasingly popular thematic is ethical investing.

There are many options available when it comes to providers of ethical investing ETFs, however, today we're taking a look at Vanguard's Ethically Conscious Australian Shares ETF.

This one considers the top 300 companies listed on the ASX with an added filter. Specifically, the fund excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment, and a conduct-related screen based on severe controversies.

As a result, the fund holds 238 ASX-listed companies with a median market capitalisation of $35.9 billion. According to the fund, the price-to-earnings (P/E) ratio of the ETF came to 20.5 times as at 31 May 2021.

Passive income investors would also be pleased to know that VETH ASX currently has a dividend yield of 2.6%.

What companies are in VETH ASX?

For most investors, you want to know exactly what is in the financial product your hard-earned dollars are going towards. For that reason, here are the top 10 holdings of the Vanguard Ethically Conscious Australian Shares ETF:

1. Commonwealth Bank of Australia (ASX: CBA)
2. CSL Limited (ASX: CSL)
3. Westpac Banking Corp (ASX: WBC)
4. National Australia Bank Ltd (ASX: NAB)
5. Australia & New Zealand Banking Grp Ltd (ASX: ANZ)
6. Wesfarmers Ltd (ASX: WES)
7. Fortescue Metals Group Ltd (ASX: FMG)
8. Macquarie Group Ltd (ASX: MQG)
9. Telstra Corp Ltd (ASX: TLS)
10. Transurban Group (ASX: TCL)

These top 10 holdings make up 48.9% of the total ETF. But how does VETH's top 10 differ from the unfiltered ASX 300? Well, the notable exclusions include BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW).

However, the latter might be considered now that Woolies has demerged from its alcohol business, Endeavour Group Ltd (ASX: EDV)

Finally, one of the most important considerations for an ETF… the costs. Investors can expect a 0.16% per annum management fee in addition to 0.01% of indirect costs.

At the time of writing, the ASX-listed VETH is trading for $58.93 per unit.

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