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VDBA

$59.00-0.34%Diversified53/100
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Vanguard Diversified Balanced Index ETF · Vanguard

Data as at 29 March 2026

TL;DR

Vanguard's most conservative diversified portfolio — approximately 30% equities and 70% bonds. Designed for capital preservation with moderate income, not long-term growth.

MER (Annual Fee)
0.27%
#3 lowest in Diversified
1Y Return
+6.7%
3Y Return (p.a.)
+7.9%
Dividend Yield
2.63%
Trailing 12 months
AUM
$887M
Assets under management
Avg Daily Turnover
$1.3M
Avg shares × unit price
Unit Price
$59.00
As at 29 March 2026
Provider
Vanguard
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Strategy

Fund of funds managed by Vanguard. Holds predominantly bond ETFs with a small equity allocation. Designed for conservative investors near or in retirement who prioritise capital stability over growth.

Top Holdings

Key Fact

VDBA and VDHG are at opposite ends of the Vanguard diversified fund range. VDHG (90% equity) is for long-term growth investors. VDBA (30% equity) is for capital preservation investors. The full Vanguard range includes VDCO, VDBA, VDGR, and VDHG.

Suited for

Conservative investors in or near retirement who need income stability and cannot tolerate significant capital drawdowns. The 70% bond allocation provides a buffer against equity market crashes.

Risks

The high bond allocation makes VDBA sensitive to interest rate rises. In 2022, when interest rates rose sharply, both the bond component and the equity component fell simultaneously — demonstrating that bonds do not always offset equity losses.

ETFCheck Score53/100
Fees (40%)60
Fund Size (25%)46
Liquidity (20%)36
Yield (15%)72
How scores are calculated →
Other Diversified ETFs
VDHG
0.27% MER
65
DHHF
0.19% MER
60View all Diversified ETFs →

Frequently Asked Questions - VDBA

How does VDBA's 50/50 equity-bond split protect investors approaching retirement?+
VDBA allocates approximately 50% to global and Australian equities and 50% to fixed income, significantly reducing portfolio volatility compared to growth-oriented alternatives like VDHG (90/10) or DHHF (100% equity). This structure historically limits drawdowns to roughly half the magnitude of pure equity funds during market corrections, preserving capital for investors within 5-10 years of retirement. The 9.8% one-year return demonstrates VDBA still participates in equity upside while the bond allocation cushions downturns - ideal for SMSF pension-phase transitions.
Does VDBA generate enough income for SMSF minimum pension drawdown requirements?+
VDBA's approximate 2.85% yield is generally sufficient to meet or approach the ATO's minimum pension drawdown rates, which range from 4-14% depending on age. However, most pension-phase SMSF trustees will need to supplement distributions by periodically selling units to meet the minimum requirement. Quarterly distributions provide regular cash flow for pension payments, and VDBA's balanced structure means selling units during drawdowns is less painful than liquidating growth assets at depressed prices during market downturns.
What are the underlying Vanguard funds inside VDBA and does it include Australian franking credit exposure?+
VDBA holds a mix of Vanguard wholesale index funds covering Australian shares, international shares (hedged and unhedged), emerging markets, Australian fixed income, and global fixed income. The Australian equities component does generate franking credits, which flow through to investors in distributions - beneficial for SMSF funds in pension phase where franking refunds apply. However, the Australian equity weighting is modest within the overall 50% equity allocation, so franking credit benefits are diluted compared to holding a dedicated Australian shares ETF like VAS.
How does VDBA compare to similar balanced ETFs available on the ASX?+
VDBA's primary ASX competitor is the BetaShares Diversified Balanced ETF (DBBF), which also targets a 50/50 growth-defensive split but at a slightly different MER. VDBA's 0.27% MER and Vanguard's established index fund infrastructure give it strong credibility among Australian investors. With a 9.8% one-year return and consistent quarterly distributions, VDBA has become a popular single-fund solution for conservative SMSF portfolios. Investors should compare underlying index methodologies and distribution histories when choosing between balanced diversified ETFs.