VAS ETF Review: Vanguard Australian Shares Index ETF (2026)

VAS is the Vanguard Australian Shares Index ETF — the largest ETF on the ASX by assets and the fund most Australian investors encounter first when they start building a diversified ETF portfolio. The VAS ETF tracks the S&P/ASX 300 Index, which contains the 300 largest companies listed on the ASX, including A-REITs. As at Q2 2026 the fund holds approximately 316 positions across approximately $50.7 billion in assets and charges a management expense ratio of 0.07% p.a.. The trailing distribution yield is approximately 3.3%, paid quarterly. Whether the asx 300 etf exposure VAS provides suits any individual depends on personal circumstances. This article is general information only, not financial advice.

This VAS ETF review walks through what VAS actually owns (with the vas etf holdings detail that most reviews skip), the asx 300 etf index methodology, the fund's fees, its franking-credit treatment for Australian resident taxpayers, its historical performance (with the past performance disclaimer that applies to every figure), and how it compares with its closest ASX peers A200 and IOZ. The vas vs a200 and vas vs ioz comparisons are the two most-searched questions for VAS holders, and each is covered with a side-by-side data table below.

At a glance

Full name	Vanguard Australian Shares Index ETF
Provider	Vanguard Australia
ASX code	VAS
Index tracked	S&P/ASX 300
Annual fee (MER)	0.07% p.a.
Fee per $10,000	$7/yr per $10,000
Fund size	$50.7B
Holdings	316
Trailing distribution yield	3.3%
Distribution frequency	Quarterly
Geographic exposure	100% Australia
Listed since	2009
Data vintage	Q2 2026

Fee, fund size, yield and holdings data is reported from fund manager disclosures, reviewed quarterly. Past performance is not a reliable indicator of future performance. Tax treatment depends on your individual circumstances. Speak with a registered tax adviser.

What is the VAS ETF?

The VAS ETF is the Vanguard Australian Shares Index ETF, an Australian-domiciled exchange-traded fund listed on the ASX in May 2009 by Vanguard Australia. The vanguard australian shares index etf tracks the S&P/ASX 300 Index, which is maintained by S&P Dow Jones Indices and contains the 300 largest companies by market capitalisation listed on the Australian Securities Exchange. The index is market-cap weighted, which means the largest companies (by share price times shares outstanding) take the largest weight in the fund.

The asx 300 etf scope is the key structural distinction between VAS and its closest competitors. IOZ and STW both track the S&P/ASX 200, which contains the 200 largest ASX-listed companies. A200 tracks the Solactive Australia 200 Index — a different index provider's 200-company basket of large Australian companies. The practical effect of VAS's broader 300-company scope is that it includes around 100 small-cap names that are excluded from the 200-company indices. Those small caps are individually small in weight because the indices are market-cap weighted; in aggregate they account for under 5% of the VAS fund.

VAS is widely held on the ASX. As at Q2 2026 the fund has approximately $50.7 billion in assets, making it the largest ETF listed in Australia. Whether VAS is appropriate for any individual depends on their objectives, financial situation, time horizon, tax position and risk tolerance. This article is general information only, not financial advice.

VAS ETF holdings: what does it own?

The vas etf holdings list as at Q2 2026 is heavily concentrated in the largest Australian companies. The top holdings are Commonwealth Bank of Australia (10.68%), BHP Group Ltd (10.03%), Westpac Banking Corp (4.84%), National Australia Bank Ltd (4.5%), ANZ Group Holdings Ltd (4.06%), Macquarie Group Ltd (3.06%), Wesfarmers Ltd (3.04%), Woodside Energy Group Ltd (2.34%), Rio Tinto Ltd (2.29%), Goodman Group (2.22%). The top 10 positions represent approximately 47% of the total fund. This concentration is not a flaw in VAS — it reflects the structure of the Australian sharemarket itself, where the four major banks, BHP, CSL, Macquarie, Wesfarmers, Telstra, Goodman Group, Woodside and Rio Tinto consistently dominate the largest end of the ASX by market capitalisation.

By sector, VAS is dominated by Financials (around 33.7%) and Materials (around 25.1%), with Health Care, Consumer Discretionary, Industrials, Communication Services and Real Estate making up most of the remainder. Information Technology is a comparatively small slice of the Australian market and a correspondingly small weight in VAS.

Geographic exposure is 100% Australia by listing country. Some of the underlying companies (such as the major miners and BHP) derive a large share of their revenue from offshore operations, but the listing exposure is wholly domestic. Investors who want offshore equity diversification typically pair VAS with a global shares ETF such as VGS, BGBL or IWLD. The VAS vs VGS comparison covers that pairing in detail.

The vas etf holdings list, sector weights and geographic breakdown update with each quarterly data refresh. Full live data is on the VAS page. Holdings data is reported from fund manager disclosures.

The ASX 300 vs ASX 200 distinction

The asx 300 etf scope of VAS is the central structural distinction from IOZ. In a market-cap-weighted index, the largest companies take the largest weights, so the difference between an ASX 200 fund and an ASX 300 fund shows up almost entirely at the small-cap end. The 100 additional companies in VAS but not in IOZ are individually small and in aggregate represent under 5% of total fund weight. The top 10 holdings of VAS, IOZ and A200 are effectively identical: the same four major banks, BHP, CSL, Macquarie and the same handful of other large Australian companies dominate every market-cap-weighted Australian equity ETF. The structural choice is therefore not "more or fewer big companies" — it is whether the investor wants the small-cap sliver at the bottom of the ASX 300 included or not.

VAS fees and costs

VAS charges a management expense ratio of 0.07% p.a.. On a $10,000 holding that is $7/yr per $10,000. On a $100,000 holding the headline annual cost is approximately $70. The MER is one of the lower fees on the ASX for a broad-market Australian shares ETF; it is not the lowest. The table below compares VAS with its closest broad-market Australian peers on fee alone.

Ticker	Provider	Index	MER
VAS	Vanguard	S&P/ASX 300	0.07% p.a.
A200	BetaShares	Solactive Australia 200	0.04% p.a.
IOZ	iShares (BlackRock)	S&P/ASX 200	0.05% p.a.

Fee data is reported from fund manager disclosures, reviewed quarterly. Fee is not the only factor in evaluating a fund: index methodology, fund size and structure all matter. The Fee Calculator shows how a fee difference of even a few basis points compounds over 10, 20 and 30 years. General information only, not financial advice.

VAS distributions and dividends

The vas dividend is a major reason many Australian resident investors hold VAS. VAS pays distributions quarterly, passing through the dividends received from the underlying ASX-listed companies. The trailing distribution yield as at Q2 2026 is approximately 3.3%. Distributions vary each period based on the dividends paid by the underlying companies and are not guaranteed. Past performance is not a reliable indicator of future returns.

VAS distributions can include franking credits because many of the underlying Australian companies — particularly the four major banks, large industrials and miners — pay franked dividends. Australian resident taxpayers can use those franking credits to reduce the tax payable on the distribution at their marginal rate, and in some circumstances receive a cash refund of excess credits. The exact franking percentage varies each distribution. The vas dividend franking treatment is one of the practical advantages of holding ASX-listed equities through an Australian-domiciled fund, but it is not advice — whether and how franking is valuable depends entirely on the investor's tax position.

For a rough estimate of the franking-credit boost on a given pre-tax dividend yield, use the Franking Credit Calculator. For a wider discussion of how franking interacts with Australian dividend ETFs see the High-Yield ETFs Australia guide. Tax treatment depends on your individual circumstances. Speak with a registered tax adviser before relying on any franking estimate.

VAS historical performance

Historical total returns reported by Vanguard as at Q2 2026 are approximately 10.1% over one year, 9.4% p.a. over three years and 8.4% p.a. over five years (annualised, total return including distributions, after the stated MER). Past performance is not a reliable indicator of future returns. Total return figures include both share-price appreciation and reinvested distributions; they are presented here as a record of what occurred over those periods, not a forecast.

Two observations on the history. First, VAS's reported returns reflect the Australian sharemarket itself: heavily weighted to financials (the four major banks) and materials (BHP, Rio, Fortescue, Newcrest). In periods when banks and miners have done well, VAS has done well; in periods when those sectors have lagged the rest of the global market, VAS has lagged broader global funds. Past performance is not a reliable indicator of future returns.

Second, the historical returns include the franking-credit benefit only indirectly — the headline return figures are pre-franking-credit grossed-up returns published by Vanguard. The cash return received by an individual investor depends on their marginal tax rate and how franking credits interact with their broader tax position. Past performance is not a reliable indicator of future returns. General information only, not financial advice.

VAS vs A200: key differences

The vas vs a200 comparison is the most-searched VAS comparison on Google. Both funds provide broad-market Australian equity exposure. They are structurally very similar but differ on index, holdings count and fee.

	VAS	A200
Provider	Vanguard	BetaShares
Index	S&P/ASX 300	Solactive Australia 200
Annual fee	0.07% p.a.	0.04% p.a.
Holdings	316	199
Fund size	$50.7B	$9.6B
Trailing distribution yield	3.3%	3.3%
Distribution frequency	Quarterly	Quarterly
Top 10 concentration	47%	49%

ETFLens calculates approximately 94% holdings overlap between VAS and A200 based on top holdings. The overlap is very high because the largest 200 Australian companies dominate both funds; the 100 additional companies in VAS are individually small in weight. Past performance is not a reliable indicator of future returns. Whether the deliberate inclusion (VAS) or exclusion (A200) of the small-cap tail is appropriate for any individual depends on their preferences and circumstances. General information only, not a recommendation. For the full side-by-side see the dedicated VAS vs A200 article and the VAS vs A200 compare page.

VAS vs IOZ: key differences

The vas vs ioz comparison sits alongside vas vs a200 as the other most-searched VAS comparison. IOZ is the iShares (BlackRock) Core S&P/ASX 200 ETF.

	VAS	IOZ
Provider	Vanguard	iShares (BlackRock)
Index	S&P/ASX 300	S&P/ASX 200
Annual fee	0.07% p.a.	0.05% p.a.
Holdings	316	204
Fund size	$50.7B	$8.4B
Trailing distribution yield	3.3%	3.4%
Distribution frequency	Quarterly	Quarterly

ETFLens calculates approximately 98% holdings overlap between VAS and IOZ. The differences are a different index provider (S&P/ASX vs S&P/ASX with a 200 versus 300 scope), a different fund manager and a different fee. Past performance is not a reliable indicator of future returns. Whether either is appropriate for any individual depends on their circumstances. See the VAS vs IOZ compare page for the full side-by-side. General information only, not financial advice.

Who holds VAS?

VAS is widely held by Australian resident investors who want broad domestic equity exposure in a single low-cost trade. It is commonly used as the Australian leg of a simple two-ETF portfolio paired with a global shares fund such as VGS, BGBL or IWLD. The vas etf is also commonly held within self-managed superannuation funds (SMSFs), where the franking-credit treatment of Australian shares can be relevant depending on the fund's tax position. These are observations of how the fund is typically used, not recommendations. The right product for any individual depends on their objectives, financial situation, time horizon, tax position and risk tolerance. ETFLens does not provide financial advice.

For wider context on how VAS sits within the full Vanguard Australia range, see the Vanguard ETFs Australia guide.

Things to consider before investing in VAS

• Concentration in banks and miners: the Australian market is heavily weighted to financials and materials, and so is VAS. Investors who are uncomfortable with the four-pillar bank concentration should look at sector weights carefully.
• No offshore equity exposure: VAS holds only ASX-listed companies. Investors who want global equity diversification need a separate fund.
• Distribution variability: the vas dividend varies each quarter depending on the dividends paid by the underlying companies. Distributions are not guaranteed.
• Franking is variable: the franking percentage attached to VAS distributions varies each period. Past franking rates are not a guarantee of future franking. Tax treatment depends on your individual circumstances.
• Small-cap sliver: the asx 300 etf includes approximately 100 small-cap companies that are not in IOZ or A200. In aggregate they represent under 5% of fund weight.
• Overlap with broad-market peers: holding both VAS and A200 (or IOZ) means paying two fees for largely duplicated exposure. The ETF Overlap Checker shows the duplicated portion.
• Fee compounding: the Fee Calculator shows how the difference between, say, 0.07% and 0.04% compounds over long horizons.

The VAS Product Disclosure Statement (PDS) and Target Market Determination (TMD) are available at vanguard.com.au. Reading the PDS before investing is the most direct way to understand exactly what the fund is, how it is structured, and what risks it carries.

General information only. Not financial advice. This article does not consider your personal financial situation, objectives or needs. Past performance is not a reliable indicator of future performance. Fee, fund size, yield and holdings data is reported from fund manager disclosures, reviewed quarterly. Always check the current PDS for the most recent fee and holdings information before investing. Tax treatment depends on your individual circumstances. Franking credit estimates are not guaranteed and vary each distribution. Speak with a registered tax adviser. ETFLens does not hold an Australian Financial Services Licence. Always read the relevant PDS and TMD and consider seeking advice from a licensed financial adviser (AFS licence holder) before making any investment decisions.