Vanguard VEFI ETF (ASX:VEFI)

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (AUD Hedged)

About the VEFI ETF

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (AUD Hedged) VEFI gives exposure to Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged). The Fund invests in a range of high-quality, income generating securities issued by governments, government owned entities, government guaranteed entities, investment grade corporate issues and securitised assets from around the world. The VEFI ETF pays quarterly distributions.

The Fund does not invest in securities of issuers that engage in activities in, and/or derive revenue from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment.

The ETF seeks to track the return of the Bloomberg MSCI Global Aggregate SRI Exclusions Float Adjusted Index Hedged into Australian dollars before taking into account fees, expenses and tax.

VEFI ETF Performance Review

1.14

-2.93

-1.16

0.37

3.26

4.73

Data Current To: 31/12/2024

Our review of VEFI ETF

Global, ethical portfolio with good mix of government and corporate bonds

The fund takes interest rate risk

Investment grade fund with a weighted average credit quality of AA- as at 31 December 2024

What we like about the VEFI ETF

Hedged to AUD

High quality, diverse global portfolio

Things to be aware of about the VEFI ETF

Significant loss in 2022 but now shows much improved yield to maturity

Returns can be volatile as the market expectation swings between expected interest rate hikes and cuts

Vanguard was fined $12.9m in 2024 for making false or misleading greenwashing representations

VEFI ETF Investment Strategy

The fund invests in high-quality, income-generating securities issued by governments, government-owned entities, government-guaranteed entities, investment-grade corporate issues and securitised assets from around the world. The fund excludes securities associated with fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.

What does the VEFI ETF Invest In?

VEFI is a Multi Sector ETF.

In constructing the Index, using MSCI research, Bloomberg (the Index provider) excludes the securities of issuers that engage in activities in, and/or derive revenue (above a threshold specified by the Index provider) from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment.

This index methodology also excludes the securities that have a controversy score above a threshold specified by MSCI. Where MSCI has insufficient or no data available to adequately assess a particular security relative to the ethically conscious criteria of the Index, these securities may not be excluded.

VEFI ETF Credit Quality

The average credit quality of the VEFI ETF is AA-.

A detailed breakdown of the credit quality is expressed below.

VEFI Frequently Asked Questions

What index does the VEFI ETF aim to replicate?

The VEFI ETF aims to replicate the Bloomberg MSCI Global Aggregate SRI Exclusion Float Adjusted Hedged into AUD Index.

How often does VEFI ETF pay distributions?

The distribution frequency of VEFI is Quarterly.

When did the VEFI ETF start?

The inception date of the VEFI ETF was 11/09/2018.

What are the net assets of the VEFI ETF?

VEFI has net assets of $74.8m (AUD) as of 31/12/2024.

What are the number of holdings in the VEFI ETF?

Total number of holdings in VEFI is 5550 as of 31/12/2024.

What are the management fees for the VEFI ETF?

The annual management fees for the VEFI ETF are 0.26% p.a. Learn more about ETF fees in this article.

How can I invest in the VEFI ETF?

VEFI is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the VEFI ETF have a minimum investment amount?

No, there is no minimum to invest in the Vanguard VEFI ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the VEFI ETF?

No, VEFI has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.