Vanguard Australian Shares Index ETF (ASX: VAS) tracks the S&P/ASX 300 and holds approximately 316 of the largest Australian companies, weighted by size. It charges a 0.07% management fee, distributes income quarterly with franking credits typically attached, and is the largest Australian-equity ETF on the ASX, with net assets of approximately $24.3 billion.
Key facts
| Ticker | ASX: VAS |
| Full name | Vanguard Australian Shares Index ETF |
| Issuer | Vanguard |
| Benchmark index | S&P/ASX 300 |
| Management fee (MER) | 0.07% p.a. |
| Listed since | 2009 |
| Net assets (AUM) | $24.3B |
| Holdings | 316 |
| Top 10 concentration | approximately 47% |
| Distribution frequency | Quarterly |
| Distribution yield (trailing) | approximately 3.3% |
| Domicile | Australia |
Figures as at Q2 2026. Live numbers are on the VAS detail page.
Pros and cons
Pros
- Low 0.07% management fee from a major issuer
- Around 316 holdings covering most of the ASX by market value
- Franking credits typically attached to distributions, relevant for Australian residents
- Largest Australian-equity ETF by assets — deep liquidity and tight spreads
- Listed since 2009, through multiple market cycles
Cons
- Heavily concentrated in its largest holdings — the major banks and BHP dominate
- Financials and Materials together are a large share of the fund — limited technology/growth exposure
- A200 charges a lower management fee (0.04%) for very similar exposure
- Equal-weight alternatives such as MVW avoid the mega-cap concentration
What does VAS invest in?
VAS aims to track the S&P/ASX 300 — the largest Australian-listed companies by market capitalisation, covering most of the Australian sharemarket by value. Because the index is market-capitalisation weighted, the largest companies dominate the fund: the top 10 holdings are approximately 47% of the portfolio. This is a feature of the Australian market rather than VAS specifically — every cap-weighted ASX 300 fund has a similar shape.
Sector breakdown
| Sector | Weight |
|---|---|
| Financials | 33.7% |
| Materials | 25.1% |
| Industrials | 7.3% |
| Consumer Discretionary | 6.4% |
| Real Estate | 6% |
| Health Care | 5.6% |
| Energy | 4.7% |
| Communication Services | 3.6% |
| Consumer Staples | 3.6% |
| Information Technology | 2.3% |
| Utilities | 1.5% |
Largest holdings
The largest 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 fund holds the underlying shares directly and rebalances when the index reweights.
Performance
As an index fund, VAS aims to deliver the return of the S&P/ASX 300 less fees and tracking difference, rather than to outperform it. Historical annualised total returns to Q2 2026:
| Period | Return (total) |
|---|---|
| 1 year | 10.1% |
| 3 years (p.a.) | 9.4% p.a. |
| 5 years (p.a.) | 8.4% p.a. |
Past performance is not a reliable indicator of future returns.
VAS has been listed since 2009; longer-run and since-inception figures are on the VAS detail page. Foreign withholding tax does not apply because the underlying companies are Australian.
Fees and costs
- Management fee (MER): 0.07% p.a.
- Cost on $10,000: approximately $7/yr per $10,000
- Buy/sell spread: a small percentage of trade value, set by the issuer and varying with market conditions
- Brokerage: depends on your broker; some platforms offer $0 brokerage on Vanguard ETFs
- Distribution Reinvestment Plan (DRP): available at no brokerage cost
A200 charges a lower management fee (0.04%) for very similar exposure. Use the ETF fee calculator to model the fee difference on your own balance over time.
Tax efficiency
For Australian residents, the defining feature of VAS is franking. Australian companies that have paid company tax can attach franking credits to their dividends, and VAS passes these through to unit holders. The franking rate varies each year, so check the latest distribution statement rather than assuming a fixed level.
Franking credits can reduce the tax payable on a distribution or generate a refund. A fund or investor on a 0% rate (such as an SMSF in pension phase) can receive the full franking credit back as cash, while a higher-rate taxpayer may owe additional tax on the grossed-up amount. Work through your own marginal rate with the Franking Credit Calculator. International funds such as VGS and IVV do not provide franking credits — a structural reason many Australian portfolios hold a meaningful Australian-equity allocation.
VAS uses the Attribution Managed Investment Trust (AMIT) regime, so distribution components — franked and unfranked income, foreign income, capital gains and any tax-deferred amount — are attributed to unit holders on the AMIT Member Annual Statement. Cost-base adjustments may apply at year-end; broker tax statements or a service such as Sharesight handle this.
VAS vs alternatives
VAS vs A200
A200 tracks a near-identical broad Australian index at a lower management fee (0.04% versus 0.07%), with approximately 94% estimated overlap of listed top holdings. VAS has a larger asset base and longer track record. See VAS vs A200.
VAS vs IOZ
IOZ (iShares Core S&P/ASX 200) is another broad Australian-equity fund with approximately 94% estimated overlap of listed top holdings. The practical differences are index, fee and spread. See VAS vs IOZ.
VAS vs VHY
VHY is a yield-screened subset of the broad Australian market, with approximately 87% estimated overlap of listed top holdings and a heavier tilt to banks and miners. See VAS vs VHY.
VAS vs VGS
This is a complement rather than a contest: VAS is Australian equity and VGS is international developed-market equity. Many diversified Australian portfolios hold both. See VAS vs VGS.
VAS vs MVW
MVW (VanEck Australian Equal Weight) holds Australian companies at equal weight rather than by market cap, reducing the mega-cap concentration at a higher management fee (0.35%). See VAS vs MVW.
Who VAS may suit, and who it may not
May suit
- Australian residents building a core Australian-equity allocation
- SMSF trustees seeking franked income with a low fee and high liquidity
- Investors who prefer broad market-cap exposure to a stock-picked or factor-based fund
May not suit
- Investors seeking to avoid concentrated bank and mining exposure
- Investors targeting a higher technology or growth weighting
- Investors who already hold VDHG, DHHF or BGBL, which include an Australian sleeve
- Non-resident investors, who do not benefit from franking credits
These are general descriptions of common situations, not personal recommendations. Whether VAS is appropriate depends on your individual circumstances, which ETFLens cannot assess.
How to buy VAS
VAS trades on the ASX during normal market hours and can be bought through any Australian broker. Most brokers offer CHESS-sponsored holding, where units are registered in your own name with the share registry; some use a custodian model instead. Distributions are paid quarterly, and a Distribution Reinvestment Plan (DRP) lets you reinvest them in new units at no brokerage cost. The 45-day holding rule applies for franking credit claims above the small-shareholder threshold — see the Franking Credit Calculator.
Frequently asked questions
Is VAS a low-cost Australian shares ETF?
VAS charges a management fee of 0.07% per annum, which is among the lower fees for a broad Australian-equity ETF from a major issuer (A200 is slightly lower at 0.04%). Whether it suits your situation depends on the rest of your portfolio. General information only, not financial advice.
What does VAS invest in?
VAS holds shares in approximately 316 of the largest Australian-listed companies by market capitalisation, weighted by size. The largest sector is Financials at approximately 33.7%, followed by Materials. General information only, not financial advice.
What is the MER of VAS?
The management expense ratio (MER) of VAS is 0.07% per annum, charged on the value of your holding. On a $10,000 holding that is approximately $7/yr per $10,000. General information only, not financial advice.
Does VAS pay franking credits?
VAS receives dividends from Australian companies and passes attached franking credits through to unit holders. The franking rate varies each year, so check the latest distribution statement. For Australian residents, franking credits can reduce tax payable or generate a refund — see the Franking Credit Calculator. General information only, not financial advice.
How often does VAS pay distributions?
VAS distributes quarterly, typically in late March, June, September and December. Distributions vary each period and are not guaranteed. General information only, not financial advice.
How do VAS and A200 compare?
VAS and A200 hold a high proportion of the same companies (approximately 94% estimated overlap of their listed top holdings). A200 has a lower management fee (0.04% versus 0.07%); VAS has a larger asset base and a longer track record. General information only, not financial advice.
Can I hold VAS and VDHG together?
Diversified all-in-one funds such as VDHG already include an Australian-equity allocation, so holding VAS alongside them increases your total Australian-equity weight. Use the ETF Overlap Checker to see the combined exposure before deciding. General information only, not financial advice.
What is the distribution yield on VAS?
The trailing distribution yield on VAS is approximately 3.3% as at Q2 2026. Grossing up for any attached franking credits raises the effective yield for Australian residents. Yields fluctuate with the market and are not guaranteed. General information only, not financial advice.
Is VAS CHESS sponsored?
VAS units can be CHESS-sponsored — registered in your own name with the ASX share registry — when bought through a CHESS-sponsoring broker. Some brokers use a custodian model instead, so check with your broker if CHESS sponsorship matters to you. General information only, not financial advice.
Where can I see the live VAS holdings and price?
Live price, full holdings, distributions and tracking information are on the ETFLens VAS detail page, with data reviewed quarterly. General information only, not financial advice.
Related links
- VAS vs A200
- VAS vs IOZ
- VAS vs VHY
- VAS vs VGS
- VAS live data and holdings
- ETF Overlap Checker
- Franking Credit Calculator
- NDQ ETF Review
Last updated: May 2026. Holdings, fees and returns are reviewed quarterly; live price and assets update on the VAS detail page.
General information only. This review provides general information about VAS (Vanguard Australian Shares Index ETF) and does not take into account your personal objectives, financial situation or needs. It is not personal financial product advice and not a recommendation to buy, hold or sell any security. ETFLens does not hold an Australian Financial Services Licence (AFSL). Before investing you should read the latest Product Disclosure Statement (PDS) and Target Market Determination (TMD) at vanguard.com.au, consider whether the product is appropriate for your circumstances, and consider seeking advice from a licensed financial adviser. Past performance is not a reliable indicator of future returns. Yields, franking levels and tracking differences can change.