VAS — the Vanguard Australian Shares Index ETF — is one of Australia’s most popular and most widely held ETFs. It tracks the S&P/ASX 300 index, giving investors exposure to the 300 largest ASX-listed companies in a single, low-cost fund. This review covers what VAS holds, its costs, distributions, and how it compares to alternatives.
VAS at a Glance (2026)
| Feature | Detail |
|---|---|
| ASX code | VAS |
| Full name | Vanguard Australian Shares Index ETF |
| Index tracked | S&P/ASX 300 |
| Number of holdings | ~300 |
| MER | 0.07% per year |
| Distribution frequency | Quarterly |
| Inception date | May 2009 |
| Fund size | $18+ billion (AUM) |
| Provider | Vanguard Australia |
Data accurate at time of publication. Verify current details at vanguard.com.au.
What Does VAS Hold?
VAS tracks the S&P/ASX 300 — the 300 largest companies listed on the ASX by market capitalisation. The top holdings are dominated by Australia’s largest companies:
| Company | Approximate weight |
|---|---|
| Commonwealth Bank (CBA) | 9–10% |
| BHP Group (BHP) | 5–7% |
| CSL Limited (CSL) | 5–6% |
| National Australia Bank (NAB) | 4–5% |
| Westpac (WBC) | 3–4% |
| ANZ Group (ANZ) | 3–4% |
| Wesfarmers (WES) | 3–4% |
| Macquarie Group (MQG) | 2–3% |
| Goodman Group (GMG) | 2–3% |
| Woolworths (WOW) | 2–3% |
Weights change with market movements and index rebalancing. Check current holdings at vanguard.com.au.
VAS Sector Allocation
VAS reflects the ASX 300’s sector composition:
| Sector | Approximate weight |
|---|---|
| Financials | 28–32% |
| Materials | 18–22% |
| Healthcare | 8–12% |
| Consumer Staples | 5–8% |
| Real Estate | 5–7% |
| Consumer Discretionary | 5–7% |
| Industrials | 5–7% |
| Information Technology | 3–5% |
| Energy | 3–5% |
| Utilities | 1–3% |
The concentration in financials and materials is a characteristic of the Australian market — investors should be aware that VAS is not a globally diversified fund.
VAS Distributions and Franking Credits
VAS distributes quarterly. The annual distribution yield has historically ranged from approximately 3.5–4.5% (cash), with grossed-up yields (including franking credits) typically in the 5–6% range — reflecting the high proportion of fully franked dividends paid by major ASX companies.
All distributions include a franking credit component, which can offset or reduce Australian income tax.
VAS MER — 0.07% Per Year
At 0.07% per year, VAS is one of the cheapest ETFs on the ASX. On a $50,000 investment, the annual fee is $35. This compares to 1.5–2.0% for many actively managed Australian equity funds.
VAS is slightly more expensive than A200 (0.04%) and IOZ (0.05%) — but the difference on $50,000 is only $15–$17 per year. Over long periods this compounds, but is a very small consideration compared to the underlying market returns.
VAS Performance
VAS tracks the S&P/ASX 300 index — so its performance equals the index return minus the 0.07% MER. The S&P/ASX 300 total return index has historically delivered approximately 8–10% per annum over long periods (including dividends), based on historical data from S&P and Vanguard.
Past performance does not guarantee future returns. Market returns vary significantly from year to year.
VAS vs A200 vs IOZ
See the dedicated VAS vs A200 comparison article. In brief:
| Feature | VAS | A200 | IOZ |
|---|---|---|---|
| Index | S&P/ASX 300 | Solactive Aus 200 | S&P/ASX 200 |
| Holdings | ~300 | ~200 | ~200 |
| MER | 0.07% | 0.04% | 0.05% |
| Provider | Vanguard | BetaShares | iShares |
The differences between VAS, A200, and IOZ are small — all three provide very similar exposure to Australia’s largest companies. For most investors, any of the three is an appropriate core Australian shares holding.
Related Articles
- A200 ETF Review
- VAS vs A200 — Which Is Better?
- IOZ ETF Review
- Vanguard ETFs Australia
- Best Australian Share ETFs
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Frequently Asked Questions
Is VAS a good ETF for beginners? VAS is one of the most widely recommended ETFs for Australian beginner investors — it’s low cost, highly diversified across 300 companies, and backed by Vanguard (one of the world’s most respected investment managers). Its quarterly distributions and franking credits make it efficient for most Australian tax situations. Many financial educators use VAS as a core example of a sensible long-term investment.
Does VAS pay franking credits? Yes. VAS holds 300 ASX-listed companies, many of which pay fully or partially franked dividends. VAS passes through these franking credits to unit holders proportionally. The amount of franking credits varies each quarter depending on the underlying dividends received.
How is VAS different from VDHG? VAS holds only Australian shares (ASX 300). VDHG is a diversified fund holding approximately 36% Australian shares, 54% international shares, and 10% bonds. VDHG provides global diversification in one fund; VAS is a pure Australian market exposure. Many investors hold VAS alongside an international ETF (like VGS) to construct their own diversified portfolio.
This article provides general financial information only. ETF mentions are for educational context. Past performance is not a reliable indicator of future performance. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.