Exchange-traded funds (ETFs) like the Vanguard Australian Shares Index ETF (ASX: VAS) are growing increasingly popular with investors.
ETFs are a good way to diversify your portfolio without investing thousands of dollars with a fund manager. By buying a portion of the investment, you instantly get access to hundreds, potentially thousands, of shares.
For example, the Betashares Nasdaq 100 ETF (ASX: NDQ) invests in the top 100 shares on the NASDAQ, like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and Amazon.com, Inc (NASDAQ: AMZN).
The point of an ETF is to as closely as possible match the performance of the index market they are tracking. It’s fair to say that VAS has done that. Over 12 months, the S&P/ASX 200 Index (ASX: XJO) has risen 21.1%. At the same time, VAS is 22.1% higher. Year-to-date tells much the same story. VAS is 9.44% up while the ASX 200 is 7.81% higher.
ETFs also pay a portion of their profits as dividends to investors. For example, Vanguard says it expects its next payout to be $1.41 per share for VAS investors. That represents a 1.5% yield based on the current share price as of writing – $93.45 per share.
Without further ado, here is what VAS is invested in.
What shares does the Vanguard Australian Shares Index ETF own?
|Company||Sector||Portfolio percentage (%)|
|Commonwealth Bank of Australia (ASX: CBA)||Banks||8.10|
|CSL Limited (ASX: CSL)||Healthcare||6.47|
|BHP Group Ltd (ASX: BHP)||Resources||6.13|
|Westpac Banking Corp (ASX: WBC)||Banks||4.32|
|National Australia Bank Ltd (ASX: NAB)||Banks||4.17|
|Australia and New Zealand Banking Group Ltd (ASX: ANZ)||Banks||3.61|
|Wesfarmers Ltd (ASX: WES)||Retail||3.10|
|Macquarie Group Ltd (ASX: MQG)||Diversified financials||2.58|
|Woolworths Group Ltd (ASX: WOW)||Consumer staples and discretionary||2.41|
|Telstra Corporation Ltd (ASX: TLS)||Communications||2.08|
|Rio Tinto Limited (ASX: RIO)||Resources||1.90|
|Transurban Group (ASX: TCL)||Transportation||1.77|
|Goodman Group (ASX: GMG)||Real Estate||1.77|
|Fortescue Metals Group Limited (ASX: FMG)||Resources||1.59|
|Afterpay Ltd (ASX: APT)||Buy Now, Pay Later||1.45|
|Aristocrat Leisure Limited (ASX: ALL)||Consumer staples and discretionary||1.33|
|Coles Group Ltd (ASX: COL)||Consumer staples and discretionary||1.10|
|James Hardie Industries plc (ASX: JHX)||Materials||1.07|
|Sydney Airport Holdings Pty Ltd (ASX: SYD)||Transportation||0.98|
|Sonic Healthcare Limited (ASX: SHL)||Healthcare||0.95|
|Newcrest Mining Ltd (ASX: NCM)||Resources||0.92|
|Woodside Petroleum Limited (ASX: WPL)||Energy||0.85|
|Xero Limited (ASX: XRO)||Technology||0.84|
|Brambles Limited (ASX: BXB)||Materials||0.80|
|QBE Insurance Group Ltd (ASX: QBE)||Diversified financials||0.79|
|ASX Ltd (ASX: ASX)||Diversified financials||0.78|
|Suncorp Group Ltd (ASX: SUN)||Diversified financials||0.73|
|Cochlear Limited (ASX: COH)||Healthcare||0.70|
|South32 Ltd (ASX: S32)||Resources||0.68|
|Scentre Group (ASX: SCG)||Real Estate||0.67|
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Marc Sidarous owns shares of BETANASDAQ ETF UNITS and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Amazon, Apple, BETANASDAQ ETF UNITS, CSL Ltd., Cochlear Ltd., Microsoft, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, BETANASDAQ ETF UNITS, COLESGROUP DEF SET, Macquarie Group Limited, Telstra Corporation Limited, Wesfarmers Limited, and Xero. The Motley Fool Australia has recommended Amazon, Apple, Cochlear Ltd., and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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