Selecting a few ETFs (exchange-traded funds) in an investment portfolio can enhance diversification and risk management. These funds track various indexes, including stocks, bonds, and commodities like gold, among others, thereby providing the benefit of potential increased returns.
Today, we will discuss two such ETFs that are listed on the ASX and are managed by Vanguard Investments Australia Ltd.
Let’s dig deeper.
Vanguard Australian Shares High Yield ETF (AU:VHY)
The VHY ETF offers cost-effective access to companies listed on the ASX that are projected to have higher dividend yields.
The fund was launched in May 2022 to offer investors long-term market performance with diversified securities. The ETF has delivered an annual return of 8.79% p.a. since its inception. In terms of its trading price, the ETF has generated a return of more than 50% in the last three years.
The fund has a total of 72 holdings with a market cap of AU$ 64.4 billion. The top five holdings of the fund are BHP Group Ltd. (AU:BHP), Commonwealth Bank of Australia (AU:CBA), National Australia Bank Limited (AU:NAB), Woodside Energy Group Ltd. (AU:WDS), and Westpac Banking (AU:WBC).
Moving onto the technical analysis, the fund has a Strong Buy rating on the summary signal within the time frame of one month. The summary signal includes a Strong Buy signal from the moving averages and a Buy signal from the oscillators.
Vanguard US Total Market Shares Index ETF (AU:VTS)
The objective of the Vanguard U.S. Total Market Shares Index ETF is to replicate the performance of the CRSP US Total Market Index. This ETF offers investors exposure to some of the leading companies listed in the U.S., enabling their participation in long-term growth prospects. The fund is suitable for investors looking for international diversification and a high-risk appetite. It was started in 2009 and has delivered a return of 14.7% p.a. since its launch.
YTD, the ETF price has achieved a 13% gain, resulting in a remarkable 42% increase over the past three years.
The index consists of equities spread across various sectors such as IT, consumer cyclical, financial services, healthcare, and more. Its top holdings include Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), and NVIDIA Corp. (NASDAQ:NVDA).
According to TipRanks’ technical analysis, the fund has a Strong Buy rating within a time frame of one month. The summary signal includes a Strong Buy from the moving averages and a Buy from the oscillators.
The above-mentioned ETFs present investors with affordable and well-diversified investment alternatives. Additionally, based on technical analysis, both of them exhibit a Buy signal for a one-month timeframe.