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VGAD

$115.24-0.76%Global / All World75/100
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Vanguard MSCI Intl Shares (Hedged) ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks the same approximately 1,400 companies across 23 developed markets as VGS, with the AUD/USD exchange rate hedged. Returns reflect sharemarket performance without currency movements.

MER (Annual Fee)
0.21%
#4 lowest in Global / All World
1Y Return
+15.7%
3Y Return (p.a.)
+16.6%
Dividend Yield
3.87%
Trailing 12 months
AUM
$6,442.1M
Assets under management
Avg Daily Turnover
$11.2M
Avg shares × unit price
Unit Price
$115.24
As at 29 March 2026
Provider
Vanguard
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Strategy

Tracks the same MSCI World ex-Australia Index as VGS but applies monthly-rolled currency forwards to remove foreign exchange exposure. Managed by Vanguard at 0.21% per year.

Top Holdings

Key Fact

Some advisers recommend splitting international equity exposure between VGS (unhedged) and VGAD (hedged) to partially smooth out currency cycles without paying for full hedging on the entire allocation.

Suited for

Investors who want developed-world equity exposure but prefer to isolate the equity return from currency fluctuations. Often used alongside VGS in a split allocation.

Risks

Hedging adds 0.03% to the annual fee compared to VGS. Over the last decade, the AUD weakened against the USD and other major currencies — unhedged VGS holders earned currency gains that VGAD holders did not.

VGAD Comparisons

ETFCheck Score75/100
Fees (40%)69
Fund Size (25%)78
Liquidity (20%)65
Yield (15%)100
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Frequently Asked Questions - VGAD

When does VGAD outperform its unhedged counterpart VGS?+
VGAD outperforms VGS when the Australian dollar appreciates against a basket of foreign currencies, particularly the US dollar. For example, if global shares rise 10% but the AUD also strengthens 5%, VGS investors lose some gains to currency conversion while VGAD locks in the full return. Conversely, when the AUD weakens - as it often does during global crises - VGS typically outperforms VGAD due to favourable currency translation effects.
What is the cost of currency hedging in VGAD and is it worth it?+
VGAD's MER of 0.21% is only 0.03% higher than VGS's 0.18%, but the true hedging cost also includes the interest rate differential between Australia and foreign markets, which can vary significantly. When Australian interest rates are higher than US rates, hedging creates a small drag on returns. Over the long term, currency movements tend to wash out, so VGAD suits investors with shorter time horizons or those drawing down in AUD.
How should Australian retirees split between VGS and VGAD?+
Retirees drawing income in Australian dollars often benefit from allocating a portion to VGAD to reduce currency volatility on near-term spending needs. A common approach is holding 50% VGAD for stability over 1–5 years and 50% VGS for long-term growth, since unhedged exposure historically benefits from AUD weakness during market downturns. SMSF trustees in pension phase should consider their cash flow timing when deciding the split between hedged and unhedged international allocations.
Does VGAD hold different stocks to VGS or just add a currency overlay?+
VGAD holds the same portfolio of approximately 1,500 developed-market stocks across 23 countries as VGS - the underlying index is identical. The only structural difference is that VGAD layers currency forward contracts on top to neutralise the impact of AUD fluctuations against foreign currencies. This means stock selection, sector weights, and country allocations are the same; the sole differentiator is whether your returns are exposed to foreign exchange movements.