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VDHG

$71.53-0.18%Diversified65/100
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Vanguard Diversified High Growth Index ETF · Vanguard

Data as at 29 March 2026

TL;DR

Vanguard's all-in-one diversified growth portfolio — approximately 90% equities and 10% bonds — held in a single ETF. Automatically rebalances. One of the most widely held ETFs in Australia by account count.

MER (Annual Fee)
0.27%
#2 lowest in Diversified
1Y Return
+9.9%
3Y Return (p.a.)
+12.2%
Dividend Yield
3.67%
Trailing 12 months
AUM
$3,715.9M
Assets under management
Avg Daily Turnover
$2.1M
Avg shares × unit price
Unit Price
$71.53
As at 29 March 2026
Provider
Vanguard
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Strategy

Fund of funds managed by Vanguard. Holds underlying Vanguard ETFs covering Australian shares, international shares, bonds, and other asset classes in fixed proportions. Automatic quarterly rebalancing maintains the target allocations.

Top Holdings

Key Fact

VDHG is one of the most widely held ETFs in Australia by number of investor accounts. One purchase provides exposure to thousands of companies and bonds across global markets — the simplicity of this proposition has driven its popularity.

Suited for

Investors who want a complete, pre-built, diversified portfolio in one trade. Particularly popular with investors following simple index investing approaches who want a single-fund solution.

Risks

The fixed 90/10 equity/bond split does not adjust for different investor life stages. In 2022, when both equities and bonds fell simultaneously as interest rates rose, VDHG's defensive component provided less protection than expected.

VDHG Comparisons

ETFCheck Score65/100
Fees (40%)60
Fund Size (25%)69
Liquidity (20%)42
Yield (15%)100
How scores are calculated →
Other Diversified ETFs
DHHF
0.19% MER
60
VDBA
0.27% MER
53View all Diversified ETFs →

Frequently Asked Questions - VDHG

Why does VDHG distribute capital gains even when investors haven't sold their units?+
VDHG's multi-manager fund-of-funds structure triggers capital gains events when Vanguard internally rebalances between its seven underlying funds to maintain target allocations. These realised gains are passed through to unitholders as taxable distributions, sometimes creating unexpected tax bills - a well-known issue Australian investors discuss extensively. With a 2.15% yield and quarterly distributions, VDHG can be less tax-efficient during accumulation than DHHF (ASX), which reinvests internally. This is a key consideration for SMSF trustees comparing diversified options.
Is VDHG's 10% bond allocation meaningful enough to reduce portfolio risk?+
VDHG's 10% fixed income allocation provides only modest downside protection compared to a pure equity fund like DHHF. In the 2022 rate-rising environment, bonds actually lost value alongside equities, temporarily negating the diversification benefit. The 90/10 split contributed to VDHG's 15.2% one-year return trailing DHHF's 16.8%, reflecting both the bond drag and structural differences. Investors wanting genuinely balanced exposure should consider VDBA's 50/50 split instead - VDHG is functionally a growth fund despite the bond component.
How does VDHG's MER of 0.27% compare to building a similar portfolio manually on the ASX?+
VDHG's 0.27% MER covers automatic rebalancing across seven Vanguard funds spanning Australian equities, international shares, emerging markets, bonds, and hedged international exposure. Building this manually using individual Vanguard ETFs like VAS, VGS, VGE, and VIF would cost approximately 0.10-0.20% in weighted MER but require regular rebalancing trades and brokerage fees. For portfolios under $200,000, VDHG's convenience typically outweighs the fee premium, making it popular among Australian SMSF trustees and beginner investors seeking one-fund simplicity.
What type of Australian investor is VDHG best suited for in the current market environment?+
VDHG targets growth-oriented investors with at least a 7-year horizon who want diversified global exposure without managing multiple holdings. It suits accumulation-phase super members, younger SMSF trustees, or investors making regular contributions through Vanguard's Personal Investor platform. However, investors in high tax brackets should weigh VDHG's quarterly distributions and capital gains pass-throughs against DHHF's more tax-efficient reinvestment structure. Those closer to retirement may find VDBA's 50/50 balanced allocation more appropriate for their reduced risk tolerance.