Vanguard ETFs vs iShares ETF – Investment Portfolios

Lots of people are interested in building an ETF portfolio. But many of them want a ready-made portfolio to get started. Whilst we are still working on the BetterWealth ready-made portfolio, it’s a good opportunity to provide examples of other ready-made portfolios.

Who better to provide examples than iShares and Vanguard. The two global leaders in ETF products. iShares ETFs are 33% of the Aussie market, and Vanguard ETFs are 23% of the market. Both ETF companies offer ready-made ETF portfolios based on different risk profiles. Figure out your risk profile here.

Click on the links/pies below and you can see the respective portfolios in action through our ETF portfolio builder.

Vanguard ETF logo

 

 Vanguard - Conservative30% Growth Allocation

Vanguard Balanced Vanguard - Balanced: 50% Growth Allocation

Vanguard Growth Vanguard - Growth70% Growth Allocation

Vanguard High Growth Vanguard - High Growth90% Growth Allocation

 

ishares logo White BG

ishares Conservative iShares - Conservative17% Growth Allocation

ishares balanced iShares - Balanced49% Growth Allocation

ishares Growth iShares - Growth70% Growth Allocation

ishares Aggressive iShares Aggressive85% Growth Allocation

 

Performance & Metrics

We thought it would be interesting to compare their respective Growth portfolios.

MetricsVanguard Growth PortfolioiShares Growth Portfolio
MER %0.16%0.17%
Bid / Ask Spread %0.14%0.18%
Dividend Yield2.98%4.64%
# of ETFs74
% of Growth ETFs70%70%

 

If you invested $10,000 in the portfolios since 1 Jan 2016, the iShares Growth portfolio would be worth $9,989, Vanguard Growth portfolio would be worth $9,955. There aren't material differences in returns at this point. At this stage, brokerage is the core difference with Vanguard portfolio costing more to implement, since you have to pay 3x more brokerage.

We acknowledge that the tracked time period is only short. It doesn’t mean much at this stage for a long term buy-hold strategy. But it’s an interesting metric to consider. We will look to provide more portfolio comparisons going forward.

 

About the Author

jeremykl

Cofounder & CEO of BetterWealth (@jeremykwonglaw). Former investment banker turned technology entrepreneur. muru-D alumni (Telstra startup accelerator). Passionated about leveraging technology to provide better financial products & services to consumers. Coffee snob, business book reader, and fitness fan.

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