Vanguard's Australian Shares option provides exposure to a wide range of companies listed on the Australian Stock Exchange. Because the option invests in most of the securities in the index it offers higher diversification and lower risk than many funds. The fund's buy and hold approach can significantly reduce the costs of investing over time, which can improve performance potential particularly on an after-tax basis.
Who it may suit
- long-term investors (usually seven years plus)
- investors seeking long-term capital growth
- investors seeking a tax-effective investment
- investors seeking an efficient way to access a broad portfolio of Australian shares
- investors using a core/satellite strategy seeking an index fund for the core of their Australian shares portfolio
Objectives
To match the total return of the S&P/ASX 300 Index before taking into account fees, expenses and taxes.
Benefits
| Diversification |
|
| Long-term growth potential | offers long-term capital growth potential through its diversified portfolio of Australian shares |
| Low fees |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$100,000
|
| Buy/sell spread | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| Management costs | 0.34% p.a. |
| Member account keeping fee | Nil |
|
Administration/plan management fee For the first $50,000 For the balance over $50,000 |
0.75% p.a. 0.50% p.a. |
Risk/return profile
At Vanguard, we believe it's just as important to understand the risks and costs of investing, as it is to know about the rewards.
Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard Australian Shares option based on historical data. It's important to remember that past performance is no guarantee of future performance and the risk/return profile of each option may vary from year to year.
