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

A man sees some good news on his phone and gives a little cheer.
ETFs

Up 40% in 2025, why this ASX ETF may just be getting started

This ASX ETF has consistently beaten the market.

Read more »

The letters ETF with a man pointing at it.
ETFs

The pros and cons of buying iShares S&P 500 ETF (IVV) this month

Is this leading fund a good buy today?

Read more »

ETF written on wooden blocks with a magnifying glass.
ETFs

2 amazing ASX ETFs I'd buy for market-beating returns

These funds have a lot of potential, in my view.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

$10,000 invested in the ASX 200 5 years ago is now worth…

Guess how much $10,000 invested in the ASX 200 five years ago is worth today!

Read more »

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.
ETFs

10 ASX ETFs to buy in May with $10,000

These funds offer investors access to many of the best companies in the world.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
ETFs

MOAT ETF is up 10% in 2 weeks. Is this ASX ETF still good value?

Let's see if it is too late to buy this popular fund.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
ETFs

3 ASX ETFs for beginner investors to buy

Getting started with investing can feel overwhelming — especially if you're not sure which individual stocks to pick or when…

Read more »

Smiling woman holding Australian dollar notes in each hand, symbolising dividends.
ETFs

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

Worried about US stocks? This ASX ETF allows you to invest everywhere globally whilst avoiding the US.

Read more »