VDHG vs (VAS+VGS) Fees
I recently had a great question my YouTube channel about why VAS + VGS is cheaper than VDHG in terms of annual fees.
I’ve knocked up a quick table below of an example where someone might have $10,000 to invest and they’re trying to understand the difference in fees between Option 1: $5,000 in VAS and $5,000 in VGS vs Option 2: $10,000 in VDGH:
The fees will change depending on the proportion in VAS and VGS, but at no point does a VAS + VGS combination become more expensive than VDHG because the highest is $18 on a 100% VGS combination and the lowest being $10 on a 100% VAS portfolio.
However one thing to consider is the transaction (brokerage) because a VAS + VGS combination as you need to pay brokerage 2x vs just paying brokerage 1x on the VDHG purchase. But on a purely ongoing fees, VAS + VGS is generally cheaper than VDHG.
Links to the ETFs:
VAS Vanguard Australian Shares ETF