VTS - Vanguard US Total Market Shares Index ETF

[System]

Investment objective
Vanguard U.S. Total Market Shares Index ETF seeks to track the performance of the CRSP US Total Market Index, providing investors with exposure to a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics.

Fund overview
The ETF provides exposure to some of the world’s largest companies listed in the United States. It offers low-cost access to a broadly diversified range of securities that allows investors to participate in their long-term growth potential. The ETF is exposed to the fluctuating values of the US currency, as there will not be any hedging to the Australian dollar.

Suitability
Buy and hold investors seeking long-term capital growth, some income, international diversification, and with a higher tolerance for the risks associated with share market volatility.

Vanguard Australia Personal Investor

www.vanguard.com.au

 

[Gretsch]

Am I wrong but VTS seems to beat every other ETF or managed fund for shareholder return over time.

 

[divs4ever]

BUT doesn't beat it's benchmark regularly ... hinting at 'a rising tide lifts all boats ' effect

will it also track that index as the US market contracts ??

 

[Gretsch]

BUT doesn't beat it's benchmark regularly ... hinting at 'a rising tide lifts all boats ' effect

will it also track that index as the US market contracts ??

Well, obviously right, and yes.

 

[Belli]

Am I wrong but VTS seems to beat every other ETF or managed fund for shareholder return over time.

This is an odd beast for an ETF. It doesn't hold USA shares directly I understand but via CDI's. Unlike most ETFs no AMIT statement is issued at the end of each FY and any distributions received are declared in the tax return the year in which they are received unlike an ETF such as VAS.

 

[Ferret]

This is an odd beast for an ETF. It doesn't hold USA shares directly I understand but via CDI's.

That's interesting, Belli. How does it track the US market if it only holds CDIs? I thought only a few US stocks can be bought as CDIs.

Unlike most ETFs no AMIT statement is issued at the end of each FY and any distributions received are declared in the tax return the year in which they are received unlike an ETF such as VAS.

Does this have any implications that people should be aware of?

 

[Ferret]

How does it track the US market if it only holds CDIs? I thought only a few US stocks can be bought as CDIs.

Ahh - I think I get it. So VTS is a CDI for Vanguard's US whole market tracking ETF.

 

[Belli]

Ahh - I think I get it. So VTS is a CDI for Vanguard's US whole market tracking ETF.

From the latest PDS. Easier than replicating the US ETF.

 

[Belli]

Does this have any implications that people should be aware of?

Apologies for overlooking that question.

Page 12 of the current PDS briefly (?) discusses in a general way, taxation issues. Here is a link to the PDS. It only 198 pages in total!

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02660846-2A1446617?access_token=83ff96335c2d45a094df02a206a39ff4

 

[Ferret]

Thanks, Belli.

I hold some RMD and AMC CDIs so I think I understand how VTS distributions will be treated by the ATO.

I like knowing what my taxable income from a CDI is at FY end, rather than waiting for an annual tax statement to arrive some time after FY end.

However, the RMD payment advices only convert the net payment from USD to AUD. I have to manually work out the exchange rate used and convert the gross payment and US non-resident withholding tax amounts from USD to AUD for my tax return. A bit of a nuisance.