Is VIF a good ETF?
VIF is the Vanguard International Fixed Interest Index (Hedged) ETF from Vanguard. It tracks the Bloomberg Global Aggregate ex AUD Float Adjusted Index (AUD Hedged). We classify it under Intl and Market-Cap. With about $882 million in assets it is a solidly established fund. Listed on the ASX since 2015-05-13 (over 11 years ago).
On a total-return basis, VIF has delivered 0.44% a year over 10 years (ranked 106th of 108 ETFs we track), -1.51% a year over 5 years (ranked 178th of 188 ETFs we track), 1.98% a year over 3 years (ranked 216th of 226 ETFs we track), and 0.66% a year over 1 year (ranked 252nd of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.2% is reasonable. That's cheaper than the typical 0.49% for similar ETFs. If cost is your priority, VAF (0.1%), IAF (0.1%), and VGB (0.16%) cover similar ground for less. It pays a high 9.13% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been low (annualised standard deviation around 3.99%), meaning a relatively smooth ride.
Portfolio turnover is modest at about 20% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.2% management fee keeps more of the return in your pocket.
- High 9.13% income yield — good for investors who want regular cash flow.
- Low volatility (3.99% over 10 years) for a smoother ride.
Things to watch
- Has lagged most peers over 10 years (106th of 108).
- Cheaper alternatives exist: VAF, IAF, and VGB.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What VIF's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.