Best Vanguard ETFs for Australians in 2025

In Australia, Vanguard ETFs have garnered significant attention for their ability to provide investors with exposure to a wide range of asset classes, from domestic equities to international markets, real estate, and even ethically conscious investments. 2025 has been particularly noteworthy for Vanguard, with several of its ETFs posting impressive gains, reflecting the resilience and potential of the funds in a fluctuating economic climate.

The list of top-performing Vanguard ETFs for Australians in 2025 is a testament to the company's commitment to delivering value to its investors. With returns ranging from the high teens to over 30%, these ETFs have not only kept pace with the market but have often outperformed it. This introduction serves as a prelude to a comprehensive exploration of these funds, their characteristics, and their potential to fit into an Australian investor's portfolio.

This guide aims to equip you with the knowledge needed to make informed decisions and capitalize on the opportunities presented by Vanguard's diverse range of ETFs in the Australian market.

Who is Vanguard Australia?

Vanguard Australia, a subsidiary of The Vanguard Group, Inc., is recognised as a global leader in investment management. Established by John C. Bogle in 1975, Vanguard expanded into one of the world's largest investment firms, distinguished by its focus on low-cost, high-value financial solutions and a passive investment strategy.

In Australia, Vanguard Australia offers a diverse array of ETFs tailored to the local investor base, reflecting the company's international reach and asset management expertise. With a global asset management scale in the trillions, Vanguard Australia integrates the resources of its parent company to provide a customised investment service.

The ETFs provided by Vanguard Australia are characterised by their low expense ratios and broad market coverage, aligning with the company's passive investment philosophy to deliver cost-effective market returns. These ETFs track a variety of indices, covering sectors from Australian equities to international markets, real estate, infrastructure, and ESG-focused investments.

Why do people invest in Vanguard?

Investors are drawn to Vanguard for a multitude of reasons, each aligned with the company's core values and investment philosophies. Here are some of the key factors that make Vanguard a preferred choice for many:

1. Low cost structure: Vanguard is renowned for its low-cost investment products. By keeping expenses low, Vanguard helps investors retain more of their returns, which can significantly impact the long-term growth of their investments.

2. Passive investment philosophy: Vanguard is a pioneer in index investing, a passive strategy that aims to match the performance of a market index. This approach is based on the belief that it's difficult to consistently beat the market, and passive investing offers a reliable way to capture market returns at a lower cost.

3. Diversification: Vanguard's extensive range of ETFs provides investors with the opportunity to diversify their portfolios across different asset classes, sectors, and geographies. This diversification can help spread risk and potentially enhance the stability of investment returns.

4. Global presence: With a global network, Vanguard can offer investors access to international markets, which can be an important part of a well-rounded investment strategy.

5. Performance: Many Vanguard funds have a strong track record of performance, which is a testament to their investment strategies and management.

By offering a combination of low-cost, diversified, and transparent investment options, Vanguard has positioned itself as a leader in the investment management industry, attracting a wide range of investors who are seeking a reliable and efficient way to grow their wealth.

What do Vanguard ETFs cover in Australia?

Vanguard offers a wide range of ETFs in Australia that cover various asset classes, including Australian and international equities, fixed income, real estate, and diversified investment portfolios. Here is a partial list of Vanguard ETFs available in Australia, including their ASX trading codes and some key information:

Australian Equity ETFs

International Equity ETFs

Fixed Income ETFs

Real Estate ETFs

This comprehensive list provides detailed information about the ETFs offered by Vanguard in Australia, including their investment focus, management fees, and key features. These ETFs cover a broad range of market exposures and investment options, allowing investors to build a diversified portfolio aligned with their investment objectives and risk preferences. By investing in these ETFs, investors can gain low-cost, efficient market exposure and leverage the expertise of Vanguard's professional management team.

Best Vanguard ETFs for Australians

The best can vary from person to person. When it comes to identifying the most suitable Vanguard ETFs for Australians, it's important to consider a range of factors including performance, diversification, cost, and alignment with individual investment goals. We have compiled a list of the top ten performing Vanguard ETFs in Australia, as of January 24, 2025, based on the latest available information and performance data. This list is intended to assist you in finding the best Vanguard ETFs that are tailored to your own investment needs.

Here are the top performing Vanguard ETFs for Australian investors as of the latest updates:

（Source: moomoo, Date: January 24）

Please note that past performance is not indicative of future results, and investors should consider their own financial situation and risk tolerance before making any investment decisions.

From the table of ten, let's focus on an overview of the initial five Vanguard ETFs:

Vanguard Etclly Cons Int Shrs ETF

The Vanguard Etclly Cons Int Shrs ETF (VESG) invests in companies with strong ESG performance, targeting leaders in sustainability and responsible business. It tracks the FTSE Developed ex Australia Choice Net Return Index, offering a benchmark for investors focused on net returns from developed markets, excluding Australia. This index reflects the actual return after dividends and adjustments for taxes and fees.

Vanguard MSCI Intl ETF

The Vanguard MSCI Intl ETF provides investors with a cost-effective way to invest in a broad range of international equities outside of Australia. This ETF tracks the MSCI World ex Australia Index, which includes large and mid-cap companies from developed markets across Europe, Asia, and the Americas. This fund is ideal for investors looking to diversify their equity exposure beyond domestic markets and tap into global growth opportunities.

Vanguard MSCI Intl (Hdg) ETF

The Vanguard MSCI Intl (Hdg) ETF is designed for investors who want to invest in international equities while hedging against currency fluctuations. This ETF tracks the MSCI World ex Australia Index in Australian dollars, which means it aims to reduce the impact of currency movements on the investment returns. This strategy can be beneficial for investors who are concerned about the volatility of foreign exchange rates and want to focus on the underlying performance of international equities.

Vanguard Global Infrastructure ETF

The Vanguard Global Infrastructure ETF offers investors a way to invest in a global portfolio of infrastructure companies. This ETF tracks an index that includes a diverse range of companies involved in the development, operation, and management of infrastructure assets such as transportation, utilities, and communication networks. Investing in this ETF allows investors to benefit from the long-term growth potential of the global infrastructure sector and gain exposure to essential services that are critical to the global economy.

Vanguard Australian Property Secs ETF

The Vanguard Australian Property Secs ETF provides investors with exposure to a broad range of Australian real estate companies. This ETF tracks an index that includes a selection of ASX-listed real estate investment trusts (REITs) and other property securities. By investing in this ETF, investors can gain access to a diversified portfolio of Australian property assets, which can provide a combination of capital growth and income through dividends, as well as potential diversification benefits within a broader investment portfolio.

How to invest in Vanguard ETFs in Australia?

Investing in Vanguard ETFs in Australia is a straightforward process, especially when using an online investment platform like moomoo. Here's a step-by-step guide on how to invest in Vanguard ETFs using moomoo:

1. Account Creation: Begin by signing up for an account on the moomoo platform. You'll need to provide personal details and complete any necessary identity verification processes.

2. Funding your account: Once your account is set up, you'll need to fund it. Moomoo allows you to transfer money from your bank account. Ensure you have the minimum required funds to start investing.

3. Research: Before investing, it's crucial to research the Vanguard ETFs you're interested in. Review their performance, fees, and the assets they hold. Moomoo provides a comprehensive platform for research and analysis.

4. Search for ETFs: Use the search function on Moomoo to find the specific Vanguard ETFs you want to invest in. You can search by ticker symbol or name.

5. Place an order: Once you have selected an ETF, you can proceed to place an order through moomoo. The platform provides a variety of order options to suit your trading preferences.

6. Monitor your investment: After investing, it's important to monitor your ETF's performance. Moomoo provides tools to track your portfolio and receive updates on your investments.

By following these steps, you can effectively invest in Vanguard ETFs through moomoo, taking advantage of the platform's user-friendly interface and comprehensive investment tools. Remember, it's always a good idea to stay informed about market trends and to adjust your investment strategy in line with your financial goals and risk tolerance.

Key factors to consider for the best Vanguard investment

Determining the "best" investment in Vanguard is a highly personalized decision that depends on an investor's individual circumstances, including their financial goals, risk tolerance, investment horizon, and personal values. Investors can find the best ETFs suitable for their needs by referring to the sections "Best Vanguard ETFs for Australians" and "What do Vanguard ETFs cover in Australia?".

However, when evaluating Vanguard's offerings to find the best fit for your portfolio, there are several factors to consider:

1. Investment objectives: Consider what you aim to achieve with your investment. Are you looking for capital growth, income, or a combination of both? This will guide you towards the appropriate type of ETF, such as a growth-oriented ETF or one that focuses on high-yielding stocks.

2. Risk tolerance: Assess your risk tolerance. Some ETFs, like those focused on small-cap stocks or emerging markets, may offer higher potential returns but also come with higher risk. Conversely, ETFs that track broad market indices or government bonds may be more stable but offer lower returns.

3. Diversification: The best investment for you might be one that helps you achieve a well-diversified portfolio. Vanguard offers a range of ETFs that cover different asset classes, sectors, and geographies, allowing you to spread risk across various investments.

4. Expense ratio: Look at the expense ratios of the ETFs. Lower fees can significantly impact your returns over time, so it's generally beneficial to choose ETFs with lower costs.

5. Performance history: While past performance is not indicative of future results, it can be a useful indicator of how an ETF has performed in various market conditions. Consider the historical performance of the ETFs you're interested in.

6. Liquidity: The best investment for you might be one that offers good liquidity, meaning it can be easily bought and sold without significantly affecting the price.

In essence, the best investment in Vanguard is one that aligns with your personal investment strategy, risk profile, and long-term objectives. It's important to conduct thorough research and, if necessary, consult with a financial professional to ensure that your investment choices are appropriate for your needs.

What Vanguard funds to invest in Australia?  

Vanguard provides two principal investment avenues for Australians: mutual funds and exchange-traded funds (ETFs). Unlike mutual funds, which are not traded on the stock exchange, ETFs are available for purchase and sale on the Australian Securities Exchange (ASX). Both options enable Australian investors to build diversified portfolios, thereby diminishing the necessity for most to select individual stocks.

Vanguard boasts an array of 29 distinct ETFs on the ASX, with the most sought-after ones concentrating on index funds and international equities. This variety caters to a range of investor preferences, enabling them to choose ETFs that align with their specific investment objectives and risk appetites.

Best Australian Vanguard ETFs summed up

The best Vanguard ETFs for Australians in 2024 are those that have demonstrated strong performance, align with individual investment goals, and offer diversification benefits. These ETFs provide exposure to a variety of asset classes, including domestic and international equities, fixed income, real estate, and ESG investments. The top-performing ETFs, as of December 5, 2024, have returns ranging from the high teens to over 30%, showcasing their resilience and potential in a fluctuating economic climate. When selecting the best Vanguard ETFs for your portfolio, consider factors such as performance, cost, diversification, and alignment with your investment objectives.

FAQs about Australian Vanguard ETFs

1. Which Vanguard ETF pays the highest dividend?

As of January 24, the Vanguard ETF that pays the highest dividend in Australia is the Vanguard Australian Shares High Yield ETF (ASX: VHY). VHY currently has a dividend yield of 5.17%. The dividend is paid quarterly, and the last ex-dividend date was October 1, 2024. This ETF is known for its focus on high-dividend-yielding Australian equities, providing investors with passive exposure to a portfolio of stocks that offer above-average dividend payments. With a strong track record in index management and a sensible forward-looking approach, VHY continues to be a dependable choice for those seeking income from their investments.

2. Why is Vanguard ETF so popular?

Vanguard ETFs are popular in Australia primarily due to their low-cost, efficient investment approach and broad market exposure. Firstly, Vanguard ETFs are renowned for their low management fees, allowing investors to retain more of their returns. Secondly, they offer a straightforward way to gain exposure to hundreds or thousands of stocks or bonds in a single investment, thereby diversifying investment risks. Additionally, Vanguard ETFs are easy to trade, with investors able to buy and sell them easily through Vanguard Personal Investor accounts or stockbrokers during ASX trading hours. These factors combine to make Vanguard ETFs a favored choice among Australian investors.

3. How much does it cost to invest in Vanguard ETFs?

Vanguard is known for its low-cost investment products, and ETFs are no exception. Here's a breakdown of some of the costs you should be aware of when investing in Vanguard ETFs:

1. Minimum Investment: There is no minimum initial investment requirement for Vanguard ETFs; you can start investing with as little as $1. Additionally, there is no minimum account balance required .

2. Bid-Ask Spreads: The bid-ask spread, which is the difference between the highest price a buyer is willing to pay and the lowest price a seller will accept, typically ranges from $0.01 to $0.25 for Vanguard ETFs. This spread can be wider in volatile markets .

3. Expense Ratios: Vanguard ETFs are known for low fees, but the exact expense ratio depends on the specific ETF. Always check the fees for the ETF you're investing in.