Vanguard Diversified High Growth INDEX ETF Guide (VDHG): What Is It All About?

Overview

Vanguard Diversified High Growth INDEX ETF (VDHG) offers a packaged portfolio through a small set of underlying Vanguard funds. Its supplied holdings span Australian and international shares as well as hedged global bonds, giving it a broader remit than a single-market share ETF. That breadth comes with a growth-oriented profile and the possibility of meaningful ups and downs in value.

Category

VDHG is a diversified, high-growth ETF from Vanguard Investments Australia. Rather than investing directly in a single company or sector, it combines underlying ETFs covering Australian and international shares alongside hedged global bonds.

A diversified multi-asset ETF spreads exposure across different share markets and bonds, but diversification does not prevent losses when markets fall. VDHG’s combination of Australian and international shares with global bonds provides a broad portfolio structure, while its high-growth classification points to a growth-oriented risk profile.

Key facts

Ticker

VDHG

Exchange

AU

ISIN

AU00000VDHG0

Category / focus

Multisector Aggressive

Provider

Vanguard Investments Australia Ltd

Domicile

Australia

Currency

AUD

Inception date

2017-11-20

Use of income

Quarterly

UCITS

No

Holdings count

4

Costs

TER

0.00%

Ongoing charge

0.00%

Net expense ratio

0.00%

AUM

15.1B

The supplied TER and ongoing-charge fields each display 0%. These figures should be checked against current fund disclosures, which provide the relevant detail on fees and other costs.

Performance

YTD

5.5%

1 year

7.9%

3 years

14.1%

5 years

8.5%

10 years

0.0%

Dividend yield

3.34%

Top 10 concentration

20.0%

Holdings

1. Vanguard Australian Shares INDEX ETF9.10%

   Ticker

   VAS

   Sector

   Country

   Australia

2. Vanguard MSCI INDEX International Shares ETF5.10%

   Ticker

   VGS

   Sector

   Country

   Australia

3. Vanguard Global Aggregate Bond INDEX (Hedged) ETF3.30%

   Ticker

   VBND

   Sector

   Country

   Australia

4. Vanguard MSCI INDEX International Shares (Hedged) ETF2.50%

   Ticker

   VGAD

   Sector

   Country

   Australia

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The supplied holdings list four underlying ETFs. Vanguard Australian Shares INDEX ETF (VAS) accounts for 9.1%, followed by Vanguard MSCI INDEX International Shares ETF (VGS) at 5.1%, Vanguard Global Aggregate Bond INDEX (Hedged) ETF (VBND) at 3.3%, and Vanguard MSCI INDEX International Shares (Hedged) ETF (VGAD) at 2.5%. The supplied sector breakdown has the largest weights in financial services at 22.397% and technology at 19.25%.

Sectors

• Financial Services22.4%

• Technology19.3%

• Basic Materials13.2%

• Industrials9.2%

• Consumer Cyclicals8.2%

• Healthcare8.1%

• Communication Services5.7%

• Energy4.3%

• Consumer Defensive4.2%

• Real Estate3.6%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

VDHG’s defining feature in the supplied holdings is its multi-ETF structure: it combines Australian and international share funds with hedged international shares and global bonds, rather than holding only one market or asset class.

Risks

Who it may suit

VDHG may interest investors researching a single ETF that combines Australian and international shares with global bonds. Its high-growth category signals a share-oriented diversified approach, but the fund can still experience substantial market fluctuations and may not suit every investor’s objectives, timeframe or tolerance for loss.

Key risks

Share-market falls can reduce the value of the fund, and international holdings may be affected by currency movements. Bonds can also fluctuate in value as interest rates and credit conditions change. A diversified structure does not guarantee gains or protect against losses, and distributions and returns may vary.

FAQ