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Vanguard Index Funds

Discussion in 'Exchange Traded Funds (ETF)' started by TopsideSoul, 29th Oct, 2007.

  1. TopsideSoul

    TopsideSoul New Member

    25th Oct, 2007
    I'm thinking about taking my first investment step with a Vanguard index fund, more specifically the Australian Shares and the Property Securities funds. Can anyone comment on these funds? Are there alternatives in Australia? It doesn't seem like most people bother with index funds and go for an actively managed fund instead. It'd be good to hear from people who have had personal experience with index funds, especially those offered by Vanguard.
  2. FrankGrimes

    FrankGrimes Well-Known Member

    9th Jun, 2006
    Sydney, NSW
    I used to use Vanguard and found them excellent. Low fees, good customer service etc.

    I only changed because I personally found it an effort filling out the margin lending forms every time I wanted to make and investment. Whereas with listed managed investments you can buy sell with a couple of clicks of a mouse through an online broker. This is only my personal opinion and this may not bother you.

    Main alternative would be streettracks (SPDRs). Lower MER than Vanguard but less fund offerings. You can just buy and sell through any stock broker. Very easy and effective.
  3. Rod_WA

    Rod_WA Well-Known Member

    18th May, 2007
    Inglewood, WA
    I agree with Frank. SPDRs are a very practical alternative.

    I have Vanguard High Yield Aust Shares, and have been very happy with this. The reporting is good, the literature is a good read, phone and email customer service is excellent, and HYAS distribution yield is very decent (although it is about half capital gains, half franked dividends).
    I have no intention of selling my Vanguard lot.

    If I was starting from scratch, though, I'd probably lean towards an ETF like the SPDR over the ASX200, since the fees are a bit lower.

    Can't comment on the Property funds though.
  4. Glebe

    Glebe Well-Known Member

    15th Aug, 2005
    Sydney, NSW
    I've got a couple of Vanguard funds and they've done really well.

    If I had my time again (which I will in a year when I start again!), I'll go for ASX code "STW".

    As mentioned it's a low cost index tracker.