Key findings (as at Q2 2026)
- VTS is the Vanguard US Total Market Shares Index ETF, exposure to the entire US sharemarket at 0.03% p.a., among the lowest fees on the ASX.
- VTS is US-domiciled. Australian investors generally need a W-8BEN form, and US estate tax can apply to US-situated assets above USD $60,000. Speak with a registered tax adviser.
- Trailing distribution yield is approximately 1.3%, paid quarterly. US-sourced distributions are not franked.
- General information only, not financial advice. 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, reported from fund manager disclosures and reviewed quarterly. Always verify current figures directly with Vanguard at vanguard.com.au before making any investment decisions.
VTS is the Vanguard US Total Market Shares Index ETF. It gives Australian investors exposure to the entire US sharemarket in a single trade, from the largest technology companies down to small-cap stocks, at a management expense ratio of 0.03% p.a., among the lowest of any ETF on the ASX. Whether VTS is appropriate for any individual depends on personal circumstances, objectives and time horizon, including the US tax considerations covered below. This article is general information only, not financial advice. ETFLens does not hold an Australian Financial Services Licence.
This review covers what VTS holds, its fees, its distributions, its historical returns (with the past-performance disclaimer that applies to every figure), the US domicile and tax considerations that make VTS different from most ASX ETFs, and how it compares to IVV, the S&P 500 ETF many investors weigh against it.
At a glance
| Full name | Vanguard US Total Market Shares Index ETF |
| ASX code | VTS |
| Provider | Vanguard |
| Index tracked | CRSP US Total Market Index |
| Annual fee (MER) | 0.03% p.a. |
| Fund size | $1980.8B |
| Holdings | 3,458 |
| Distribution yield | approximately 1.3% |
| Distribution frequency | Quarterly |
| Domicile | United States |
Dividend yield is a trailing distribution yield. Past performance is not a reliable indicator of future returns. Fee and fund size data is reported from fund manager disclosures, reviewed quarterly.
What is the VTS ETF?
VTS is a passive index fund issued by Vanguard that aims to track the CRSP US Total Market Index before fees. Where an S&P 500 fund holds about 500 large US companies, the total-market index VTS tracks covers essentially the entire investable US sharemarket, including mid-cap and small-cap companies. As at Q2 2026 VTS holds approximately 3,458 positions. In plain terms, one parcel of VTS spreads money across the broad US market in a single trade.
VTS holdings: what does it own?
VTS is dominated by large US companies because the index is market-cap weighted. The largest holdings as at Q2 2026 include NVIDIA Corp. (6.63%), Apple Inc. (5.74%), Microsoft Corp. (4.36%), Amazon.com Inc. (3.69%), Alphabet Inc. Class A (3.23%). The fund also holds thousands of smaller companies that an S&P 500 fund does not, though these account for a small share of total weight. Holdings change as the index rebalances and are reported from fund manager disclosures, reviewed quarterly. Full live holdings are on the VTS page.
VTS fees and costs
VTS charges a management expense ratio of 0.03% p.a., which works out to $3/yr per $10,000. That is among the lowest fees of any ETF on the ASX. A low headline fee does not by itself make a fund appropriate; the US tax considerations below are part of the total picture. You can model the long-run dollar impact of fees with the fee calculator.
VTS distributions and yield
VTS distributes quarterly. The trailing distribution yield as at Q2 2026 is approximately 1.3%. Because the underlying companies are US-listed, the dividends are foreign-sourced and are not franked. Distributions vary each period and are not guaranteed. Tax treatment depends on your individual circumstances; speak with a registered tax adviser.
VTS historical performance
Past performance is not a reliable indicator of future returns. As at Q2 2026, VTS's reported total returns were approximately 16.9% over one year, 18.0% p.a. over three years and 13.6% p.a. over five years. VTS is unhedged, so AUD returns reflect both US market movements and the AUD/USD exchange rate. These figures reflect periods of varying market conditions and should not be extrapolated forward.
US domicile and tax considerations
This is the single most important difference between VTS and most other ASX ETFs. VTS is domiciled in the United States, not Australia. For Australian investors this has two practical consequences. First, a W-8BEN form is generally required so that US withholding tax on dividends is reduced to the treaty rate; your broker usually facilitates this. Second, US-situated assets above USD $60,000 held by a non-US person can be subject to US estate tax. These are material considerations that do not apply to Australian-domiciled ETFs. This is general information only, not financial advice or tax advice. Speak with a registered tax adviser about your specific situation before investing.
VTS vs IVV: key differences
VTS and IVV are the two US share ETFs Australian investors most often compare. VTS tracks the total US market (approximately 3,458 holdings including small and mid caps) at 0.03% p.a.. IVV tracks the S&P 500 (around 500 large companies) at 0.04% p.a.. Because the S&P 500 makes up the large majority of the US market by weight, the two share most of their largest holdings. Both VTS and IVV are US-domiciled, so the W-8BEN and US estate-tax considerations above apply to each. See the full VTS vs IVV comparison for the live holdings overlap. General information only, not financial advice.
Who holds VTS?
VTS is commonly used by investors who want low-cost, broad exposure to the US sharemarket and who are comfortable with the US-domicile administration and tax considerations. It is one component of a portfolio rather than a diversified, all-in-one fund. Whether it suits any individual depends on personal circumstances. This is general information only. Consider your own situation or speak with a licensed financial adviser.
Things to consider before investing in VTS
VTS covers a single country, so it carries US market and currency risk. It is US-domiciled, with the W-8BEN and estate-tax considerations above. It is unhedged, and its distributions are not franked. For the full Vanguard range on the ASX, see the Vanguard ETFs Australia guide, and check how VTS overlaps with funds you already hold using the overlap checker. Always read the relevant PDS. ETFLens does not hold an Australian Financial Services Licence.
Conclusion
VTS is the Vanguard US Total Market Shares Index ETF: approximately 3,458 US companies at 0.03% p.a., with a trailing yield of approximately 1.3%, paid quarterly. Its defining feature is US domicile, which brings W-8BEN and US estate-tax considerations that Australian-domiciled ETFs do not. Past performance is not a reliable indicator of future returns. This is general information only, not financial advice.