VAS - Vanguard Australian Shares Index ETF

Vanguards VAS and VAP ETF's are doing exceptionally well, so far this year 19% each.
The amount of money getting sent into these ETF's must be a bit of a concern, they are obviously going to have a big impact on the market, if there is a correction. IMO
Having said that, they may well be great to try and pick the bottom, if the 'mother' of all corrections happens.

Back in March I added some more VAS to my holding. I noticed yesterday the distribution for the June quarter will be about $0.20 compared with $0.80 pcp. Interesting impact Covid-19 has had on many companies.

Belli said:

Back in March I added some more VAS to my holding. I noticed yesterday the distribution for the June quarter will be about $0.20 compared with $0.80 pcp. Interesting impact Covid-19 has had on many companies.

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The reality of dividends, hasn't yet hit those that rely on them yet, it is going to be a terrible year for some.

sptrawler said:

The reality of dividends, hasn't yet hit those that rely on them yet, it is going to be a terrible year for some.

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Yeah, one reason I don't have only ETFs. No reserves whereas the LICs I hold do.

Belli said:

Yeah, one reason I don't have only ETFs. No reserves whereas the LICs I hold do.

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It is times like this, that people gain the experience to make wise decisions, things don't always go up and things don't always recover quickly.
I'm with you on the lic's.

VAS, VGS and other Vanguard ETFs have provided estimated distributions for the period ending 30 September.

For VAS it is $0.570344 per Unit.

Down from $1.07096 for September last year. The reduction isn't surprising considering the economic conditions at the moment.

For VGS, the distribution is approximately the same as per last September.

Hold both.

Vanguard has announced estimated distributions for its ETFs.


VAS is 43.42c. For the same quarter last year it 72.1c so it is down by 40%.

I hold VAS and didn't have any expectation the result would be spectacular.

Belli said:

Vanguard has announced estimated distributions for its ETFs.

VAS is 43.42c. For the same quarter last year it 72.1c so it is down by 40% ..... didn't have any expectation the result would be spectacular.

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As ETFs can only pass through income, that would have been expected, with the last few quarters seeing many companies delaying, postponing reducing or temporarily suspending dividends altogether.

Also, elsewhere, @Belli wrote

My only real bugbear with these is waiting until the Annual Tax Statements become available

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Again, as the sum of its parts, accounts can't be prepared until ALL components are received.

For these two reasons, I prefer the LIC path

Dona Ferentes said:

As ETFs can only pass through income, that would have been expected, with the last few quarters seeing many companies delaying, postponing reducing or temporarily suspending dividends altogether.

Also, elsewhere, @Belli wrote Again, as the sum of its parts, accounts can't be prepared until ALL components are received.

For these two reasons, I prefer the LIC path

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I also hold a number of LICs as I've previously mentioned as with ETFs, they are required to empty the "bank account" for each distribution as they are tax through entities whereas LICs have profit reserves which can be used to support dividends for a period

Was useful attribute during the GFC - which is still with us really as such events have a very long tail.

I buy VAS when my prefered LICs are above NTA by a margin greater than 5%.

VAS has announced the estimated distribution for the September quarter is $1.412147 and is payable on 18 October.

This compares with $0.548148 for the pcp.

Holders of VAS will find out soon enough the distribution for the December quarter. However, as an indication, STW (ASX200) announced yesterday its estimated distribution is $0.465772 per unit. This compares with the actual of $0.382029 for the previous December quarter.

It would imply VAS distribution (should it increase by the same percentage) will be around the $0.53 mark.

Belli said:

Holders of VAS will find out soon enough the distribution for the December quarter. However, as an indication, STW (ASX200) announced yesterday its estimated distribution is $0.465772 per unit. This compares with the actual of $0.382029 for the previous December quarter.

It would imply VAS distribution (should it increase by the same percentage) will be around the $0.53 mark.

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That was a poor guess. Estimated distribution is $0.696543 per unit. Payable 19 January.

PLEASE CROSS RELEASE TO ALL BELOW COMPANY CODES

Vanguard Investments Australia Limited announces the following:
• Vanguard Australia Shares Index ETF (ASX: VAS) (ARSN: 090 939 718)
• Vanguard Australian Shares High Yield ETF (ASX: VHY) (ARSN: 091 751 807)
• Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) (ARSN: 147 936 105)
On 17 August 2021, BHP announced their intention to unify its dual-listed company structure into a single entity, BHP Limited,
incorporated in Australia. Under this unification proposal, shares in BHP Plc would be exchanged for a depositary interest for
shares in BHP Limited on a one-for-one basis. This proposal is subject to shareholders in BHP Group Limited and BHP Group Plc
voting in favour of the company’s proposal at meetings scheduled for 20 January 2022.
To prepare for the proposed unification, from 17 January 2022 Vanguard Investments Australia (VIA) will be able to acquire
BHP Plc shares on the London Stock Exchange to support the investment strategies of the above-named Funds.
Under the BHP proposal, any shares in BHP Plc that VIA acquires will be exchanged for depository interests in BHP Limited,
listed on the London Stock exchange. If approved, the unification is scheduled to be complete on 31 January 2022 at which time
VIA will commence the process to transition the depository interests into ASX listed BHP Limited shares.
US E-mini Index Futures
Vanguard Investments Australia (VIA) will also be able to use US E-mini Index Futures in the period leading up to, and on the
date of BHP’s unification, to maintain fund liquidity, manage market exposure and cash flows, while supporting broader
funding requirements.
Currency Risk
Acquisition of BHP Plc and US E-minis will result in direct exposure to the US and UK markets, which will introduce a small
amount of currency risk. Currency risk is the chance that the value of a foreign investment, measured in Australian dollars, will
decrease because of unfavourable changes in currency exchange rates.
Investment strategy and investment return objective
These short-term changes are consistent with the investment strategy and investment return objectives of the funds, and,
given the significance of the anticipated impact of the proposed unification on the Australian equities market, are being made
in the best interest of investors.
Adjustment to index methodology of the Vanguard Australian Shares High Yield Fund and ETF (VHY)
The Vanguard Australian Shares High Yield ETF (VHY) tracks the FTSE Australia High Dividend Yield Index. This index applies a
10% maximum weighting to any one company when the index is rebalanced semi-annually. To maintain these diversification
17 January 2022
requirements, a 10% cap will be applied to BHP based on the closing price on 21 January 2022. On the effective date, Vanguard
fund weightings in BHP may be over 10% due to market movements.
Please ensure that you refer to the relevant product disclosure statements when making an investment decision.

==========================================================================================================

DYOR

i hold VHY and VAS ( and BHP directly )

well have to think about this i was planning to exit both VAS and VHY shortly after the div. payment date

Estimated distribution of 199.8517c per unit announced. Payable 20 April.

Belli said:

Estimated distribution of 199.8517c per unit announced. Payable 20 April.

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First, I'm OK with accepting a distribution of $2 per unit. No problems with that at all. What is curious is the why.

VAS tracks the ASX 300 and its pcp distribution was $0.77 per unit. STW tracks the ASX 200 yet its current distribution is $0.72c per unit (pcp $0.57.)

A big disparity in current distributions between VAS v STW and the additional 100 companies in VAS would not likely account for that. Maybe each has accommodated the BHP action in a different way.

Doesn't really matter. More than happy to receive a substantial amount in the account on the 20th.

Belli said:

A big disparity in current distributions between VAS v STW and the additional 100 companies in VAS would not likely account for that. Maybe each has accommodated the BHP action in a different way.

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An initial guess as to the cause of the disparity is that the 300 companies in VAS paid more dividends during the last quarter than the 200 companies in STW.

VAS and STW, being trusts, are required to distribute those dividends. Now, whether the distribution is in cash or in kind, or quarterly or annually, is up to the trust, but the distribution has to be made.

KH

The ASX 200 accounts for approx 80% of the market whereas the ASX 300 accounts for around 82%. I cannot see how that additional 2% would account for an increase of 150% over the pcp distribution for VAS when the STW increase was 37% over pcp distribution.

Vanguard announced it was buying BHP LLC on the London market before the relocation. STW when I checked was silent on that aspect. Interestingly VAS advises its latest turnover ratio is 0.82% while that for STW is above 2%.

I'll look at the distribution components when Vanguard provides it as that may have a clue. Only a curiosity on my part.

Belli said:

The ASX 200 accounts for approx 80% of the market whereas the ASX 300 accounts for around 82%. I cannot see how that additional 2% would account for an increase of 150% over the pcp distribution for VAS when the STW increase was 37% over pcp distribution.

Vanguard announced it was buying BHP LLC on the London market before the relocation. STW when I checked was silent on that aspect. Interestingly VAS advises its latest turnover ratio is 0.82% while that for STW is above 2%.

I'll look at the distribution components when Vanguard provides it as that may have a clue. Only a curiosity on my part.

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what about M&A activity ( especially in the mid caps ) depending on the timing of div. calculation that might help narrow the difference

in theory STW should have held slightly more BHP percentage wise ( but some clever buying of BHP might have made some difference bought cheap in London sold the excess at a fair price on the ASX )

now also you should be looking at VHY as well in this comparison because VHY holds more ( percentage wise ) BHP than either VAS or STW

maybe VAS was bringing extra cash by lending out the portfolio holdings ( as it has openly declared it will do from time to time )

STW Total Holdings 209

SPDR S&P/ASX 200, seeks to closely match, before fees and expenses, the returns of the S&P/ASX 200 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.

Top 10 Holdings





interesting they hold so many futures contracts , currently



VAS Total Holdings 312

The ETF seeks to track the return (income and capital appreciation) of the S&P/ASX 300 Index before taking into account fund fees, expenses, and tax. The S&P/ASX 300 Accumulation Index is a free-float adjusted capitalisation weighted index of approximately 300 Australian equities (shares) representing over 90 per cent of the value of all Australian based companies and property trusts listed on the ASX.

Top 10 Holdings




VHY Total Holdings 67

The fund employs an index management strategy designed to track the return (income and capital appreciation) of the FTSE ASFA Australia High Dividend Yield Index. To closely track the index, the fund will aim to hold all of the securities in the index (at most times) allowing for individual security weightings to vary marginally from the index from time to time. The fund may invest in securities that have been or are expected to be included in the index.

Top 10 Holdings

A200 Total Holdings 197

The Index is designed to provide exposure to 200 of the largest companies listed on the ASX, based on their free float-adjusted market capitalisation. The Fund will seek to achieve the investment objective by adopting a âfull replicationâ strategy.


Top 10 Holdings



IOZ Total Holdings 203


The Fund invests primarily in Australian listed securities that form the Index. The Index measures the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.

Top 10 Holdings