Vanguard VGB ETF (ASX:VGB)

Vanguard Australian Government Bond Index Fund

About the VGB ETF

The Vanguard VGB ETF invests in a group of Australian government and government-related bonds. VGB ETF seeks to track the return of the Bloomberg AusBond Govt 0+ Yr Index before taking into account fees, expenses and tax. VGB ETF was created in 2008 and is $650million in size. It provides quarterly distributions and has a management fee of 0.24%.

VGB ETF Performance Review

1
Year

0.69

3
Year

4.44

5
Year

3.03

Since
Inception

4.49

Running
Yield

2.53

Yield To
Maturity

0.83

Data Current To: 31/08/2021

Our review of VGB ETF

Fund invests in Australian Commonwealth Government bonds and Australian state and territory bonds

The ETF invests in a high percentage of fixed rate bonds and is exposed to interest rate risk

What we like about the VGB ETF

Very low risk portfolio with a high weighted average credit rating of AAA

Things to be aware of about the VGB ETF

Low yield to maturity of less than 1% as at 31 August 2021.

VGB ETF Investment Strategy

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

VGB ETF Share Price

What does the VGB ETF Invest In?

VGB is a Government Bond ETF.

VGB ETF invests in Australian Commonwealth Government bonds, state government bonds and treasury corporation bonds. Almost 70% of the VGB ETF portfolio is allocated to the Treasury sector with Government Related Sovereign accounting for the remainder. VGB ETF has a very low risk portfolio with a high weighted average credit rating of AAA.

VGB ETF Credit Quality

The average credit quality of the VGB ETF is AAA.

A detailed breakdown of the credit quality is expressed below.

VGB Frequently Asked Questions

What index does the VGB ETF aim to replicate?

The VGB ETF aims to replicate the Bloomberg AusBond Govt 0+ Yr Index.

How often does VGB ETF pay distributions?

The distribution frequency of VGB is Quarterly.

When did the VGB ETF start?

The inception date of the VGB ETF was 22/12/2008.

What are the net assets of the VGB ETF?

VGB has net assets of $676.8m (AUD) as of 31/08/2021.

What are the number of holdings in the VGB ETF?

Total number of holdings in VGB is 147 as of 31/08/2021.

What are the management fees for the VGB ETF?

The annual management fees for the VGB ETF are 0.24% p.a. Learn more about ETF fees in this article.

How can I invest in the VGB ETF?

VGB 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 VGB ETF have a minimum investment amount?

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

No, VGB 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 VGB 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 is the Chief Technical Officer of Fixed Income News Australia and responsible for website design and development, including fund finder functionality. He has worked for ASX-listed industry leaders and a variety of marketing agencies across Australia. Luke is Head of Marketing at communications, content and creative agency RGC Media & Mktng, MBA News Australia and Online MBA Australia. He holds a Diploma of Creative Arts and is Google Accredited.