How much would I have now if I'd invested $10,000 in Vanguard Australian Shares Index ETF (VAS) a year ago?

Let's run the numbers and see if this has been a successful investment.

| More on:
Man holding a calculator with Australian dollar notes, symbolising dividends.

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

One of the most popular ETFs in Australia is the Vanguard Australian Shares Index ETF (ASX: VAS).

In fact, at the last count, there was $14.7 billion invested in the fund.

To put that into context, that's more than the value of lithium giant Pilbara Minerals Ltd (ASX: PLS) and Australia's flag carrier airline Qantas Airways Limited (ASX: QAN).

What is the Vanguard Australian Shares Index (VAS) ETF?

This popular ETF gives investors access to the top 300 companies listed on the Australian share market.

Vanguard highlights that this provides access to long-term capital growth potential and regular income through distributions.

In addition, due to the sheer number of ASX shares that you are buying a slice of with the ETF, it provides almost instant diversification to a portfolio.

Clearly there's a lot to like about this ETF. But has it delivered the goods for investors over the last 12 months? Let's dig deeper and find out.

$10,000 invested in ASX VAS

If I had invested into this ETF 12 months ago, I would have been buying at a price of $88.87.

This means I would have been able to pick up 113 units for an investment of $10,042.31.

While the first few months of ownership would have been relatively flat before a turbulent period between mid-September and the start of November, it would've paid handsomely (literally) to have held on.

At the time of writing, VAS is trading at $96.50 on the ASX boards. This means that my 113 units would have a market value $10,904.50. That's a return of 8.6% or approximately $862 on my investment.

But it doesn't stop there. As I mentioned above, the VAS ETF offer regular income through distributions.

Since this time last year, the Vanguard Australian Shares Index ETF has paid out a total of $3.47 per share in dividends.

This equates to a dividend yield of 3.9% based on my buy price and would have generated $392.11 in income over the 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
ETFs

What is the Vanguard Australian Shares Index ETF (VAS) dividend yield?

This fund is known for paying sizeable income. But how big?

Read more »

Man looking at an ETF diagram.
ETFs

Why these ASX ETFs could be strong buys in August

Let's see why these funds could be worth adding to a balanced investment portfolio.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Invested in ASX MOAT or other VanEck ETFs? It's dividend day!

Show us the money!

Read more »

female real estate agent stands proudly in front of house
ETFs

Can't break into the housing market? Here's 3 REIT ASX ETFs to consider

These three thematic funds focus on real estate 

Read more »

asx shares to buy and hold represented by man happily hugging himself
ETFs

5 fantastic ASX ETFs to buy and hold forever

These funds could be destined to deliver strong returns over the next decade and beyond.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
ETFs

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

Is this a good time to invest in this leading ETF?

Read more »

Ecstatic man giving a fist pump in an office hallway.
ETFs

5 ETFs to buy with $5,000 to build a winning portfolio

Let's see why these funds could help form a strong investment portfolio.

Read more »

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

5 reasons to buy the Betashares Nasdaq 100 ETF

This fund could be well worth a spot in your investment portfolio. But why?

Read more »