Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned

The world – and the ASX – was a different place in April 2020. Most of us were likely locked down that month as the COVID-19 pandemic took hold around the world. Meanwhile, units in the Vanguard Australian Shares Index ETF (ASX: VAS) were trading for just $68.16 in the midst of the uncertainty.

If you were quick thinking enough to sink $10,000 into the exchange-traded fund (ETF) tracking the S&P/ASX 300 Index (ASX: XKO) at that point in time, you likely would have walked away with 146 units.

Today, that parcel would be worth $13,268.48. The Vanguard Australian Shares Index ETF last traded at $90.88 – 33% higher than it was this time three years ago.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 36% in that time.

But what about the dividends on offer from the ETF? Let’s factor them into the fund’s returns.

All dividends paid to those invested in the VAS ETF since 2020

Here are all the quarterly offerings paid by the Vanguard Australian Shares Index ETF in the last three years, rounded to the nearest cent:

As readers can see, each of the ETF’s units has yielded $11.68 since April 2020.

That means our figurative $10,000 investment has provided $1,705.28 in passive income over its lifetime – bringing its total return on investment (ROI) to 50%.

And that’s before considering the franking credits also provided by the ETF. They may have provided tax benefits for some investors.

The Vanguard Australian Shares Index ETF’s next dividend is worth approximately 58 cents and will be paid later this month.

Taking that payout into account, the ETF currently boasts a 5.4% dividend yield.

The post Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to start buying ASX shares this week
• How I’m building more passive income to retire early
• Why is the Vanguard Australian Shares Index ETF (VAS) tumbling on Monday?
• Here are the ASX shares I was buying and selling in March
• Hoping to bag the next Vanguard Australian Shares Index ETF dividend? You’d better hurry

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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