Vanguard VAF ETF (ASX:VAF)

Vanguard Australian Fixed Interest Index

About the VAF ETF

The Vanguard VAF ETF provides investors with a diverse exposure to more than 700 bonds. The multi-sector VAF ETF fund has more than 90% invested in government and related bonds and a small exposure to corporate bonds. The fund offers investors quarterly distributions. The VAF ETF positions itself as being low cost while also the providing some protection against capital volatility. VAF ETF, which was established in 2012, seeks to track the return of the Bloomberg AusBond Composite 0+ Yr Index before taking into account fees, expenses and tax.

VAF ETF Performance Review

1
Year

5.09

3
Year

-2.68

5
Year

0.66

Since
Inception

2.6

Running
Yield

2.95

Yield To
Maturity

4.1

Data Current To: 31/12/2023

Our review of VAF ETF

A multi sector fund with approximately 90% invested in government and related bonds and a small exposure to corporate bonds

What we like about the VAF ETF

Diverse exposure to more than 700 bonds

Low fees

Low risk portfolio with a high weighted average credit rating of AA+

Things to be aware of about the VAF ETF

Top ten issuers account for more than 80% of investments in the fund, but this is mitigated by the very high quality portfolio

VAF ETF Investment Strategy

Vanguard Australian Fixed Interest Index Fund seeks to track the return of the Bloomberg AusBond Composite 0+ Yr Index before taking into account fees, expenses and tax.

VAF ETF Share Price

What does the VAF ETF Invest In?

VAF is a Multi Sector ETF.

The VAF ETF invests in securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, investment-grade corporate issuers, as well as overseas entities that issue debt in Australian dollars. The Treasury sector accounts for 52% of exposure in the VAF ETF as at 31 December 2023. VAF's low risk portfolio has a high weighted average credit rating of AA+.

VAF ETF Credit Quality

The average credit quality of the VAF ETF is AA+.

A detailed breakdown of the credit quality is expressed below.

VAF Frequently Asked Questions

What index does the VAF ETF aim to replicate?

The VAF ETF aims to replicate the Bloomberg AusBond Composite 0+ Yr Index.

How often does VAF ETF pay distributions?

The distribution frequency of VAF is Quarterly.

When did the VAF ETF start?

The inception date of the VAF ETF was 29/10/2012.

What are the net assets of the VAF ETF?

VAF has net assets of $1879.5m (AUD) as of 31/12/2023.

What are the number of holdings in the VAF ETF?

Total number of holdings in VAF is 706 as of 31/12/2023.

What are the management fees for the VAF ETF?

The annual management fees for the VAF ETF are 0.1% p.a. Learn more about ETF fees in this article.

How can I invest in the VAF ETF?

VAF 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 VAF ETF have a minimum investment amount?

No, there is no minimum to invest in the Vanguard VAF 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 VAF ETF?

No, VAF 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.

About The Issuer Of The VAF ETF: Vanguard

Vanguard Investments was founded in 1975 and manages AUD$8.7 trillion in assets globally, and is entirely client-owned.

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Luke Greensill
Luke is the Chief Technical Officer of Fixed Income News Australia. He is responsible for FINA's design and development, fund finder functionality, and is the producer of the Fixated podcast. Luke is Head of Marketing at communications, content and creative agency RGC Media & Mktng, MBA News Australia and Online MBA Australia.