VASvsVGS
The core allocation question: how much to keep domestic vs go global?
Vanguard Australian Shares Index ETF · Vanguard MSCI Index International Shares ETF
VAS and VGS serve different purposes - domestic vs global equity exposure - and most portfolios hold both. VAS yields more (2.88% vs VGS's 2.44%), benefiting from dividend imputation. VGS adds geographic diversification that VAS alone cannot provide.
Score Breakdown
Fund Profiles
As Australia's largest ETF by assets under management, VAS is managed by Vanguard and tracks the S&P/ASX 300 Index, covering 300 of the biggest companies listed on the ASX. By including 100 additional stocks beyond the ASX 200, VAS offers slightly broader diversification across mid-cap names that ASX 200 ETFs miss, while still capturing the same large-cap heavyweights. Investors seeking the most comprehensive single-fund Australian equity exposure - with franking credits flowing through distributions - will find VAS an excellent core domestic holding for portfolios and SMSFs alike.
Vanguard's VGS is one of Australia's most popular international ETFs, tracking the MSCI World ex-Australia Index across 23 developed markets with approximately 1,500 holdings. The fund is unhedged, meaning returns include the effect of currency movements, and carries a heavy US weighting of roughly 70 per cent, reflecting America's dominance in global equity markets. Investors seeking a simple, low-cost core international equity holding to pair with an Australian ETF like VAS - building a two-fund global portfolio - will find VGS an ideal foundation for long-term wealth building.