VDGR — the Vanguard Diversified Growth ETF — holds approximately 70% shares and 30% bonds, sitting between VDHG (90/10) and VDBA (50/50) in Vanguard’s range of diversified ETFs. It is designed for investors who want growth-oriented global exposure but with a larger defensive allocation than VDHG.
VDGR at a Glance (2026)
| Feature | Detail |
|---|---|
| ASX code | VDGR |
| Full name | Vanguard Diversified Growth Index ETF |
| Allocation | ~70% shares, ~30% bonds |
| MER | 0.27% per year |
| Distribution frequency | Annually (June) |
| Inception date | November 2017 |
| Fund size | ~$1B+ (AUM) |
| Provider | Vanguard Australia |
Verify current details at vanguard.com.au.
What Does VDGR Hold?
Like VDHG, VDGR is a fund of funds holding multiple Vanguard index funds:
| Component | Approximate allocation |
|---|---|
| Australian shares | ~26% |
| International shares (developed, unhedged) | ~19% |
| International shares (developed, hedged) | ~11% |
| Emerging markets | ~4% |
| Global small companies | ~3% |
| Australian fixed income | ~17% |
| International fixed income (hedged) | ~13% |
| Cash/other | ~7% |
Total exposure: approximately 14,000+ securities across 50+ countries.
Target allocations shift with market movements. Check vanguard.com.au for current detail.
The Vanguard Diversified ETF Range
Vanguard offers four diversified ETFs with different risk/return profiles:
| ETF | Allocation | MER | Risk level |
|---|---|---|---|
| VDHG | 90% shares / 10% bonds | 0.27% | High growth |
| VDGR | 70% shares / 30% bonds | 0.27% | Growth |
| VDBA | 50% shares / 50% bonds | 0.27% | Balanced |
| VDCO | 30% shares / 70% bonds | 0.27% | Conservative |
All four have the same MER (0.27%). The difference is purely in the asset allocation.
Who Is VDGR For?
VDGR is typically considered for investors who:
- Have a medium-to-long investment horizon (7–10+ years)
- Want global diversification in a single fund
- Are comfortable with share market volatility but want a larger defensive buffer than VDHG
- Are approaching a phase of life where capital preservation becomes more important (e.g., 10–15 years from retirement)
It is also used by investors who find VDHG’s 10% bond allocation too small and VDBA’s 50/50 split too conservative.
VDGR vs VDHG
| Feature | VDGR | VDHG |
|---|---|---|
| Shares | 70% | 90% |
| Bonds | 30% | 10% |
| MER | 0.27% | 0.27% |
| Expected long-term return (historical basis) | Lower | Higher |
| Expected volatility | Lower | Higher |
| Distribution | Annual | Annual |
The 20% difference in bonds allocation means VDGR has meaningfully lower exposure to share market risk than VDHG. During the 2020 COVID crash, funds with more bonds fell less sharply than 90%+ shares funds.
VDGR Distributions
VDGR distributes annually in June. Distributions include income from both the shares components (dividends, including some Australian franking credits) and the bonds components (interest income). The bonds component typically generates lower yield than shares but provides income diversification.
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Frequently Asked Questions
Is VDGR a good choice for retirement? VDGR’s 70/30 allocation places it in the “growth” category on the standard risk spectrum — above “balanced” but below “high growth”. It may suit investors who are 7–15 years from retirement and want to begin gradually reducing share market exposure, or those already in retirement who want to maintain meaningful growth exposure. Individual circumstances vary significantly — a licensed financial adviser can assess what allocation suits your retirement income needs.
What’s the difference between VDGR and a balanced fund? Standard balanced funds typically hold 50% shares / 50% bonds (like Vanguard’s VDBA). VDGR at 70/30 is more growth-oriented than a traditional balanced fund — it has higher share exposure and is expected to have higher long-term returns but more short-term volatility.
Does VDGR have lower fees than comparable managed funds? Yes. VDGR’s 0.27% MER is significantly lower than most actively managed balanced or growth managed funds, which typically charge 1.0–2.0% per year. Over long periods, this fee difference compounds substantially.
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.