Vanguard is the world’s largest provider of index funds and the pioneer of low-cost passive investing. In November 2022, Vanguard launched Vanguard Super — a MySuper-authorised superannuation product in Australia, bringing its index-first philosophy directly to the Australian retirement savings market.
Vanguard Super offers some of the lowest total fees in Australian superannuation, purely index-based investment options, and a straightforward product structure. It is a relative newcomer — launched in 2022 — and does not yet have the long-run track record of established industry funds.
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Vanguard Super at a Glance
| Fund type | Corporate (member-owned in Australia via Vanguard Investments Australia) |
| Launched | November 2022 |
| Assets under management | Growing rapidly — exact AUM updated quarterly on vanguard.com.au |
| Default option | Lifecycle High Growth MySuper |
| APRA Performance Test | Passed (first eligible year FY2023–24) |
| Open to all Australians? | Yes |
| Website | vanguard.com.au/super |
Investment Options
Vanguard Super offers seven index-based investment options across the risk spectrum. All options invest exclusively in Vanguard’s index funds — there is no active management overlay. This is a fundamental design choice: Vanguard believes the evidence for passive investing outperforming active management (after fees) is compelling.
| Option | Approx. Growth/Defensive Split | Approx. Total Fee |
|---|---|---|
| High Growth | ~90% / 10% | ~0.58% |
| Growth | ~75% / 25% | ~0.56% |
| Balanced | ~55% / 45% | ~0.54% |
| Conservative | ~35% / 65% | ~0.52% |
| Cash | 0% / 100% | ~0.50% |
| Australian Shares | ~100% / 0% | ~0.56% |
| International Shares | ~100% / 0% | ~0.58% |
Fees shown are approximate total annual cost as a percentage of balance. They include the administration fee (0.43–0.45%) plus investment management cost. Refer to Vanguard Super’s current PDS for exact figures.
MySuper Lifecycle Default
The Lifecycle High Growth MySuper option automatically transitions members through investment phases based on age:
- Under 47: 90% growth / 10% defensive (High Growth phase)
- 47–57: Gradually transitions from High Growth to Growth
- 57–67: Transitions from Growth to Balanced
- 67+: Balanced allocation
This lifecycle design removes the need for members to actively manage their allocation over time.
Fees
Vanguard Super’s fee structure is notably simple — a single annual percentage fee with no fixed dollar administration component. This makes the fee structure very transparent and proportional.
Fee Comparison by Balance
| Balance | Vanguard Super High Growth | Hostplus Index Balanced | AustralianSuper Indexed Diversified |
|---|---|---|---|
| $10,000 | ~$58/year (0.58%) | ~$90/year (0.90%) | ~$90/year (0.90%) |
| $50,000 | ~$290/year (0.58%) | ~$118/year (0.24%) | ~$140/year (0.28%) |
| $100,000 | ~$580/year (0.58%) | ~$158/year (0.16%) | ~$180/year (0.18%) |
| $250,000 | ~$1,450/year (0.58%) | ~$360/year (0.14%) | ~$400/year (0.16%) |
The critical observation: Vanguard Super is very competitive at small balances (under ~$15,000–$20,000) because it has no fixed dollar fee — competitors’ fixed weekly fees make them proportionally more expensive at small balances. At larger balances, Hostplus Index Balanced and AustralianSuper Indexed Diversified are significantly cheaper due to their lower investment management fees.
Performance
Vanguard Super launched in November 2022 and has a limited performance history — approximately 2–3 years. As an index-based product, its returns closely track the performance of the underlying benchmarks (weighted by asset class allocation).
- First full financial year return (FY2023–24, High Growth): approximately 16–18% (reflecting strong global equity markets — not indicative of long-run returns)
- APRA Performance Test: Passed in its first eligible year (FY2023–24)
- Long-run expected return: As an index product, Vanguard Super’s High Growth option is expected to deliver returns close to the market return for its benchmark — approximately the weighted average return of global equity markets over the long run
Key caveat: Vanguard Super does not have the 7–10 year performance history that major industry funds carry. This makes direct like-for-like comparison difficult. Its index-based approach means it will not significantly outperform its benchmark (by design), but it will also not significantly underperform it.
Past performance is not a reliable indicator of future performance.
Insurance
Vanguard Super provides automatic group insurance for eligible members:
Death Cover
- Automatic cover for eligible members (typically ages 25–70)
- Default cover amount: set level of cover based on age — see Vanguard Super Insurance Guide
- Additional cover available on application
TPD Cover
- Automatic cover — “any occupation” definition
- Additional cover available on application
Income Protection
- Automatic cover: up to 75% of income for up to 2 years
- 60-day waiting period applies
Insurance cost note: Vanguard Super’s insurance is arranged through a group insurer. Premiums are deducted from your super balance. The total annual cost of insurance premiums should be factored into the overall cost comparison — for some members, insurance premiums may outweigh the fee savings on small balances.
Vanguard Super vs Hostplus Index Balanced — The Key Comparison
This is the most commonly asked comparison for cost-conscious Australian super members:
| Vanguard Super High Growth | Hostplus Index Balanced | |
|---|---|---|
| Investment approach | Index only | Index only |
| Fees at $10k | ~0.58% (~$58/yr) | ~0.90% (~$90/yr) |
| Fees at $50k | ~0.58% (~$290/yr) | ~0.24% (~$118/yr) |
| Fees at $200k | ~0.58% (~$1,160/yr) | ~0.15% (~$300/yr) |
| Track record | 2–3 years (2022–) | 10+ years |
| Automatic income protection | Yes | No (application required) |
| Member Direct (direct shares) | No | Yes |
| APRA Performance Test | Passed | Passed |
Summary: Vanguard Super is cheapest at very small balances. Hostplus Index Balanced is considerably cheaper at medium and large balances. Both are index-only products. The right choice depends heavily on your balance size and whether automatic income protection matters to you.
Who Vanguard Super Suits
Strong fit for:
- Members who are committed to pure index investing and want to keep super consistent with a Vanguard portfolio outside super
- Members with small balances (under ~$15,000) where Vanguard’s no-fixed-fee structure is most competitive
- Members who want the simplest possible fee structure (one percentage, no fixed dollar component)
- Members who want a lifecycle MySuper default that automatically manages the growth-to-defensive shift
May not be ideal for:
- Members with medium to large balances — Hostplus Index Balanced and AustralianSuper Indexed Diversified are substantially cheaper
- Members who want exposure to unlisted assets (infrastructure, private equity) — Vanguard Super invests exclusively in listed index funds
- Members who want the Member Direct facility to invest directly in ASX shares
- Members who want a long performance track record to assess before joining
How to Join Vanguard Super
- Visit vanguard.com.au/super and click “Get started”
- Complete the online application
- Provide your TFN and identity verification
- Nominate Vanguard Super to your employer
- Roll over existing super via myGov or Vanguard Super’s rollover facility
Frequently Asked Questions
Is Vanguard Super regulated like other Australian super funds? Yes. Vanguard Super is a registered MySuper product, regulated by APRA, and has passed the annual APRA Performance Test. It operates under the same legal framework as all Australian super funds.
Does Vanguard Super invest in the same Vanguard ETFs available on the ASX? The underlying investments overlap significantly with Vanguard’s publicly available index funds and ETFs, but Vanguard Super uses institutional-class vehicles (not the retail ETFs) which carry lower investment management costs. The investment exposure is similar to products like VGS, VAS, VGB.
Can I use Vanguard Super alongside a Vanguard investment portfolio outside super? Yes. Many Vanguard-oriented investors hold Vanguard ETFs outside super and Vanguard Super inside super for a consistent, all-index approach. This is a personal investment strategy decision — not advice.
Why are Vanguard Super’s fees higher than Hostplus at large balances? Vanguard Super charges a single percentage fee with no fixed dollar component. At large balances, a percentage fee becomes expensive in dollar terms. Hostplus Index Balanced has a low fixed dollar fee ($78/year) plus a very low percentage investment fee (~0.08%), which results in a much lower total cost at balances above ~$20,000–$30,000.
See also: Super Fund Reviews. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.