VDHG and DHHF are both diversified all-in-one ETFs holding Australian and global shares in a single trade, at approximately 0.27% p.a. and approximately 0.19% p.a. respectively. They differ in asset mix and structure: DHHF is fully invested in growth assets, while VDHG holds a small defensive bond allocation, and the two use different trust structures affecting capital-gains distributions.
Comparing the two as an all-in-one choice? See the full side by side on the DHHF vs VDHG comparison for live holdings, fees and overlap.
VDHG and DHHF are both diversified all-in-one ETFs holding Australian and international shares in a single ticker. The key structural difference is tax treatment: VDHG uses a trust-of-funds structure that has historically distributed capital gains to unitholders from internal rebalancing; DHHF uses an AMIT structure that has historically reduced unexpected capital gains distributions.
See live data, holdings overlap and the fee difference in our VDHG vs DHHF comparison tool.
VDHG vs DHHF: key differences at a glance
| Feature | VDHG | DHHF |
|---|---|---|
| Issuer | Vanguard | Betashares |
| MER | 0.27% p.a. | 0.19% p.a. |
| Bond allocation | Approximately 10% | 0% |
| Equity allocation | Approximately 90% | 100% |
| Distribution frequency | Quarterly | Quarterly |
MER figures sourced from issuer product disclosure statements. Past performance is not a reliable indicator of future returns.
Last updated: Q2 2026. Figures on this page reflect publicly available information as at Q2 2026, sourced from each issuer's published disclosure documents and reviewed quarterly. Always verify current figures with the issuer PDS before making any investment decisions.
Key findings
- VDHG charges 0.27% p.a. and DHHF charges 0.19% p.a., a difference of 0.08% p.a.
- VDHG allocates around 10% to bonds and 90% to shares; DHHF is 100% shares with no defensive allocation.
- Both funds are diversified all-in-one ETFs providing exposure to thousands of companies in a single trade.
- The two funds have an estimated overlap of approximately 85% based on top holdings sourced from each issuer's published disclosure documents, reviewed quarterly.
Every week on Australian investing forums someone asks the same question: VDHG or DHHF? Both are diversified all-in-one ETFs that give you exposure to thousands of companies around the world in a single trade. But they are built differently, priced differently, and behave differently. This article breaks down what actually separates them.
At a glance
| VDHG | DHHF | |
|---|---|---|
| Full name | Vanguard Diversified High Growth Index ETF | Betashares Diversified All Growth ETF |
| Annual fee | 0.27% p.a. | 0.19% p.a. |
| Fee per $10,000 | $27/yr per $10,000 | $19/yr per $10,000 |
| Fund size | $3.7B | $1.3B |
| Growth allocation | 90% shares | 100% shares |
| Defensive allocation | 10% bonds | 0% bonds |
| Distributions | Quarterly | Quarterly |
| Underlying structure | 7 underlying funds | 4 ASX-listed ETFs |
| Provider | Vanguard | Betashares |
| Listed since | 2017 | 2020 |
What is VDHG?
VDHG is the Vanguard Diversified High Growth ETF. It holds a mix of Vanguard funds covering Australian shares, international developed markets (hedged and unhedged), emerging markets, and a 10% allocation to bonds. The annual management fee is 0.27%, which works out to $27 per year on a $10,000 investment. VDHG launched in 2017 and has around $3.7 billion in assets.
What is DHHF?
DHHF is the Betashares Diversified All Growth ETF. It holds four underlying ETFs covering Australian shares, US shares, international developed markets and emerging markets. There are no bonds. The underlying funds are A200, VTI, SPDW and SPEM. The annual management fee is 0.19%, which works out to $19 per year on a $10,000 investment. DHHF launched in December 2019.
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The most important structural difference is that VDHG holds 10% in bonds and DHHF holds 0%. Everything else flows from that. VDHG is technically a 90/10 growth-to-defensive portfolio. DHHF is 100% growth assets.
In practice this means DHHF will fall harder during market downturns and recover faster during rallies. VDHG's 10% bond allocation provides a small buffer during sharp falls but has historically cost returns over longer periods. In the 2022 downturn, when both stocks and bonds fell simultaneously, VDHG's bond allocation provided almost no protection.
The fee difference
On a $10,000 investment, here is what each fund costs per year:
That works out to a difference of $8 a year on $10,000. Over longer timeframes the gap compounds. The ETFLens fee calculator lets you put in your own investment amount and see the exact dollar difference over 10, 20 and 30 years.
What about the VDHG tax drag issue?
For several years VDHG had a well-known tax efficiency issue. Because it held managed funds rather than ETFs as underlying investments, it was required to distribute capital gains each year, even if you had not sold any units. This could create unexpected tax bills for investors in higher tax brackets. DHHF did not have this problem because it holds ETFs directly.
In 2024 Vanguard restructured VDHG to hold ETFs rather than managed funds, which resolved the main source of the tax drag. The practical impact of this change is still playing out and investors should check the current Vanguard PDS and consider their own tax situation before drawing conclusions. A registered tax agent can help assess the implications for your specific circumstances.
How much do they overlap?
Both funds invest in Australian and international shares with similar geographic weightings. ETFLens calculates significant overlap between VDHG and DHHF because both hold broad exposure to the same global markets, Australian large caps, US shares, and international developed markets. The main differences are VDHG's bond allocation and the slightly different weighting methodology between the two funds. You can see the full holdings comparison on the ETFLens compare page.
Investors considering making changes to an existing position may want to factor in capital gains tax before making any decisions. A registered tax agent can help assess the tax implications of your specific situation.
After-tax considerations
Tax outcomes depend heavily on individual circumstances, including your marginal tax rate and the structure you hold the investment in. They do not consider your personal situation, and you should speak with a registered tax agent before drawing any conclusions.
Bond income and tax efficiency. VDHG holds approximately 10% in bonds, while DHHF holds none. Income generated by bonds is generally taxed as ordinary income at your marginal rate. By contrast, capital gains on shares held for more than 12 months may attract the 50% CGT discount for eligible investors. Investors in higher marginal tax brackets may wish to consider the tax treatment of bond income when evaluating diversified ETFs. Consider your personal tax situation and speak with a registered tax agent.
Capital gains distributions. In earlier years, VDHG's fund-of-funds structure meant it could distribute capital gains components as part of its annual distribution, even for investors who had not sold any units. Vanguard restructured the fund in 2024 to hold ETFs rather than unlisted managed funds, which addressed the main source of this. Distribution composition can still vary year to year, and DHHF, which holds ETFs directly, has a different distribution profile. Past performance is not a reliable indicator of future returns. Distribution composition can vary significantly year to year.
Currency exposure. DHHF holds its international shares on an unhedged basis. VDHG holds international shares through both unhedged and currency-hedged sleeves, so a portion of its international exposure is hedged back to Australian dollars. Currency movements can have a significant impact on returns for funds with unhedged international exposure, in ways that are not predictable. Past performance is not a reliable indicator of future returns.
See the full side-by-side breakdown: holdings overlap, sector exposure and fee difference in dollars.
Compare VDHG vs DHHF on ETFLens →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 returns. MER and fund size data sourced from each issuer's published disclosure documents, reviewed quarterly. Always check the current PDS for the most recent fee and holdings information before investing. ETFLens does not hold an Australian Financial Services Licence. Always read the relevant PDS and consider seeking advice from a licensed financial adviser (AFS licence holder) before making any investment decisions.