Vanguard's Australian Shares Index Fund provides exposure to a wide range of companies listed on the Australian Stock Exchange. It is a low-cost, diversified share fund, which through its buy and hold investment approach offers investors the potential for tax-effective returns.
Who it may suit
- long-term investors (usually five years plus)
- investors seeking long-term capital growth and some tax-effective income
- investors seeking a tax-effective investment
- investors using a core/satellite strategy seeking an index fund for the core of their Australian shares portfolio
- higher income earners using a gearing strategy
- self managed super funds
Objectives
To match the total return of the S&P/ASX 300 Index before taking into account fund fees and expenses.
Benefits
| Diversification |
|
| Capital growth potential and some tax-effective income |
|
| Potential for better after-tax returns |
|
| Low fees |
|
| Flexibility |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$500,000
|
| Additional investments |
Nil
|
| Holding balance |
Nil
|
| Switch/withdrawal |
Nil
|
| Buy/sell spread* | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| Management costs |
0.34% p.a.
|
* Note that the sell spread is an estimate. There may be circumstances where the sell spread will be lower or higher - for example, the sell spread may be higher when there are large or prolonged withdrawals from the fund. In these circumstances, the sell spread could potentially be as much as the buy spread for the fund.
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 Index Fund 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 fund may vary from year to year.
