5 most popular Vanguard ASX ETFs for investment

ASX ETF provider Vanguard has revealed its five most popular exchange-traded funds (ETFs) among investors during the September quarter.

Vanguard said the Vanguard MSCI Index International Shares ETF (ASX: VGS) attracted $861 million in net cash inflows from Australian investors during the quarter.

This represented a substantial chunk of the $12.7 billion that investors ploughed into all types of ASX ETFs over the quarter. This made the VGS ETF the most popular ETF product in Vanguard’s stables by far.

There was a surge in ASX ETF investment in the September quarter, with less than half the amount flowing into exchange-traded funds in the previous two quarters.

Data from the ASX and Vanguard shows investors spent $5.38 billion on ASX ETFs in the June quarter and $5.28 billion in the March quarter.

Let’s check out the five most popular Vanguard ETFs of the September quarter.

5 most popular Vanguard ASX ETFs

1. Vanguard MSCI Index International Shares ETF (ASX: VGS)

The ASX VGS attracted $861 million in net cash inflows from Australian investors during the quarter.

The VGS ETF gives investors great geographical diversification through its exposure to more than 1,500 international shares from many nations, including the United States, Japan, the United Kingdom, and Canada.

However, US shares dominate the portfolio at 73%, followed by Japan (6%), the UK (4%) and Canada (3%).

This ASX ETF provides exposure to some of the world’s top-performing companies, including Microsoft and Nvidia. The ASX VGS is focused on major companies, with 80% of its holdings in large-cap stocks.

2. Vanguard Australian Shares Index ETF (ASX: VAS)

The ASX VAS attracted $436 million in net cash inflows from investors during the September quarter.

The VAS ETF seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO).

This ETF gives investors exposure to ASX blue-chip stocks like Commonwealth Bank of Australia Ltd (ASX: CBA) and CSL Ltd (ASX: CSL), as well as small-cap stocks like Megaport Ltd (ASX: MP1).

Check out how $5,000 in the VAS ETF turned into $47,671 in just 10 years.

3. Vanguard Australian Shares High Yield ETF (ASX: VHY)

Investors spent $386 million on the ASX VHY during the quarter.

The ASX VHY is one of the best-performing Australian shares exchange-traded funds. It’s full of ASX dividend stocks that are forecast to deliver bigger dividend yields than the market average of 4% to 4.5%.

Vanguard restricts the amount invested in any one industry to 40% and 10% for any one company. This means it’s not overexposed to the ASX’s major industries, being miners and banks.

The ASX VHY holds stocks including BHP Group Ltd (ASX: BHP), Super Retail Group Ltd (ASX: SUL), Transurban Group (ASX: TCL), Telstra Group Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES).

4. Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

The ASX VGAD received $330 million in net cash inflows from investors during the quarter.

This ETF is the hedged version of the VGS ETF. It is hedged to Australian dollars, so the returns (income and capital gains) are relatively unaffected by currency fluctuations.

Its top holdings include the Magnificent Seven stocks as well as Broadcom and Eli Lilly.

5. Vanguard All-World Ex-US Shares Index ETF (ASX: VEU)

The ASX VEU attracted $212 million in net cash inflows from Australian investors during the quarter.

The ETF provides exposure to many of the world’s largest companies listed in developed and emerging markets outside the US.

It is exposed to the fluctuating values of foreign currencies, as there is no hedging.

This ASX ETF provides exposure to 3,824 equities.

Its top three holdings are Taiwan Semiconductor Mfg. Co. Ltd. at 2.34%, the Ozempic and Wegovy maker Novo Nordisk at 1.19%, and tech company Tencent Holdings at 1.12%.

Find out the particular type of ASX ETF that has attracted 56% of all cash inflows in 2024.