It’s likely that you have encountered VGS, a well-known investment product listed on the ASX, if you’re starting out in international equities investing from Australia. However, what is VGS exactly? Is it a managed fund or an exchange-traded fund (ETF)?
What is VGS?
VGS is the Vanguard MSCI Index International Shares ETF, issued by Vanguard Australia. It gives investors exposure to a diversified portfolio of large and mid-cap companies across major developed markets outside Australia. It tracks the MSCI World ex-Australia Index, which includes companies from the U.S., Europe, Japan, and other developed nations.
So, Is VGS an ETF?
Yes, VGS is an ETF.
It is traded on the Australian Securities Exchange (ASX) under the ticker symbol VGS, which makes it accessible like any other share. You can buy and sell VGS units through your brokerage account during normal trading hours.
What’s the Difference Between an ETF and a Managed Fund?
Understanding the distinction is key:
| Feature | ETF (like VGS) | Managed Fund |
|---|---|---|
| Trading | Traded on ASX like a stock | Bought/sold through the fund manager |
| Pricing | Market price, fluctuates during the day | Priced once a day (NAV-based) |
| Minimum Investment | Low (as little as the price of one unit) | Often higher (e.g., $500–$5,000+) |
| Transparency | High – holdings usually updated daily | Varies – can be monthly or quarterly |
| Fees | Generally low | Can be higher, depending on the fund |