Own VAS shares? Here's how this ETF performed in 2021

How did the ASX's top ETF perform over 2021?

| More on:
an older woman holds a handful of paper money in her hands and looks at them with a slightly crazy smile on her face wearing her spectacles on a string as a lot of older people do.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Although the ASX welcomed a plethora of new exchange-traded funds (ETFs) to the public markets last year, the Vanguard Australian Shares Index ETF (ASX: VAS) retained its top spot as ASX investors' favourite ETF. With roughly $10 billion in assets under management, it seems Aussie investors can't get enough of this relatively simple index fund.

But does VAS have the numbers to back up this popularity? Let's check out how this ETF performed last year.

So VAS is a rather unique ETF in that it tracks the S&P/ASX 300 Index (ASX: XKO). While most ASX index funds stick with the conventional S&P/ASX 200 Index (ASX: XJO), VAS throws in an extra hundred companies from the bottom end of the market. That means that you'll still find ASX blue chip stalwarts like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), and Telstra Corporation Ltd (ASX: TLS) in this ETF. But you'll also get companies like Life360 Inc (ASX: 360) and Sezzle Inc (ASX: SZL) that are excluded from the ASX 200.

How did VAS navigate 2021?

So how did VAS perform last year? Well, this ETF started the year at $84.56 a unit, and ended up at $95.95 by New Year's Eve last week. That's an on-paper capital gain of 13.38%. Not bad, one could say. But add VAS's four dividend distributions that investors enjoyed over last year, and that return gets boosted by a rough 3.3% (plus a bit extra on the top with franking).

That compares well against the ASX 200 Index. It recorded a gain of 13% for the calendar year last year.

Since CBA is VAS's single largest holding, this ASX bank's hefty 23% gain over 2021 would have helped drive these returns. Other blue chips that enjoyed healthy gains in 2021 that also would have lent a hand include Telstra Corporation Ltd (ASX: TLS), up 40%, and Woolworths Group Ltd (ASX: WOW), up 14%. The main detractors would have been BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), which both went backwards over the year that was.

The Vanguard Australian Shares Index ETF charges a management fee of 0.1% per annum (or $10 a year for every $10,000 invested).

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

Diverse group of university students smiling and using laptops
ETFs

5 ASX ETFs for beginners to buy in June

Let's see why these funds could be great options if you're starting your investment journey.

Read more »

A man activates an arrow shooting up into a cloud sign on his iPad.
ETFs

How can ASX investors gain exposure to cloud computing?

This ETF allows investors to buy a slice of 'the cloud'.

Read more »

Cybersecurity professional man inspects server room and works on iPad.
ETFs

$10,000 invested in HACK ETF a year ago is now worth…

This exchange-traded fund seeks to capitalise on growing global demand for cybersecurity services.

Read more »

A group of men in the office celebrate after winning big.
ETFs

Which 3 thematic ASX ETFs have surged between 20% and 50% since April?

These 3 ASX ETFs have beaten the market by a substantial margin.

Read more »

A graphic illustration with the words NASDAQ atop a US city and currency
ETFs

Why NDQ ETF and these ASX ETFs could be top buys in June

Let's see why these funds could be top picks for investors with money to put into the market.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
ETFs

Looking for diversified exposure to Nvidia shares after its result? Buy this ASX ETF

Nvidia delivered another impressive earnings result this week.

Read more »

ETF with different images around it on top of a tablet.
ETFs

I think it's a great time to invest in this top ASX ETF

This fund offers the potential for strong returns, in my opinion.

Read more »

Woman calculating dividends on calculator and working on a laptop.
ETFs

$10,000 invested in VDHG ETF a year ago is now worth…

This exchange-traded fund provides more stock diversification than you could imagine.

Read more »