Author Topic: Best Vanguard Fund Australia  (Read 969 times)

Mellabella

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Best Vanguard Fund Australia
« on: January 17, 2022, 06:30:40 AM »
Hi,

JL Collins and MMM always talk about VTSAX. What would be the closest equivalent in Vanguard Australia? And should I go for managed funds or ETF's? I have found managed funds and ETFs with the same fees.

Thanks in advance. 

mjr

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Re: Best Vanguard Fund Australia
« Reply #1 on: January 24, 2022, 02:54:31 AM »
VAS is the Australian equivalent ETF, the index is the ASX300.    The Vanguard Australioa Shares Index fund (VAN0002AU) is the managed fund equivalent.

The VAS ETF is slightly cheaper.  Go with it, unless you want to make frequent, small trades, in which case the managed fund is probably better.

If you're talking about the All US stocks ETF but accessible from Australia, that's the VTS stock on the ASX.

« Last Edit: January 24, 2022, 02:59:09 AM by mjr »

Dropbear

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Re: Best Vanguard Fund Australia
« Reply #2 on: January 25, 2022, 03:53:31 PM »
Hi,

JL Collins and MMM always talk about VTSAX. What would be the closest equivalent in Vanguard Australia? And should I go for managed funds or ETF's? I have found managed funds and ETFs with the same fees.

Thanks in advance. 

There's a bit of a difference in context here.

JL Collins' home country is the USA, and coincidentally the USA's share market is massive.  So he's able to purse a very simple strategy, to invest his US dollars in a single fund and achieve a very broad level of diversification at a low cost.

VAS is the Australian equivalent, but that's only for Australia, which is a tiny portion of the world market.  The same simple strategy when applied here has a similar low cost, but it isn't nearly as diverse, due to our smaller size economy, and the relative concentration of our economy towards banks and mining.

VTS is the all American stock, which is US domicile, so it involves some extra forms for us to invest in, apparently.  But there's also VSG (and VESG) for a global exposure (even though it's still mostly mostly US) with an Australian domicile, which is more convenient.

However, if you're wanting to replicate JL Collins' single fund strategy in Australia, then with any of those US or international funds, you'll have extra exchange risk.  So as a result, Aussies often split, with some investments in Australia and some international, and where to draw the line between these is a personal question that is subject to much debate.

There's been a lot of discussion on VTS and VSG in the old Australian Investments Thread, so searching for these fund names in that thread will hopefully yield a greater level of detail.

https://forum.mrmoneymustache.com/investor-alley/australian-investing-thread/