DHHF vs VAS vs VGS: The Best ETF for Australians in 2026
The three ETFs every Australian investor ends up comparing. The twist most articles miss: they’re not really rivals — one is a whole portfolio, the other two are building blocks. Here’s how to choose.
The honest verdict
If you want maximum simplicity — one trade, one fund, automatic rebalancing, never think about it again — DHHF is the answer. It holds ~8,000 shares across Australia and the world in a single ETF at a 0.19% fee.
If you want more control and a slightly lower fee — and you don’t mind managing two holdings — pairing VAS (Australian shares, 0.07%) with VGS (global shares ex-Australia, 0.18%) lets you set your own Australia-vs-world split and lean into Australian franking credits. This is the classic DIY two-fund core.
There’s no universal “best.” DHHF wins on simplicity; VAS + VGS wins on control and tax-efficiency for many Australians. The rest of this guide helps you pick the side you’re actually on.
⚠️ The mistake almost every comparison makes
DHHF, VAS and VGS are constantly pitted against each other as if you’d pick one. But that framing is misleading: DHHF already contains Australian and global shares — it’s a finished portfolio. VAS and VGS are ingredients — Australian shares and global shares respectively — that you blend yourself.
So you’d rarely hold all three. The real decision is: do you want the one-fund approach (DHHF), or the build-your-own approach (VAS + VGS, and often a touch of emerging markets)? Get that right and the rest is detail.
Fees are management fees/MER as published by the issuers, May 2026. Yields and holdings change — always confirm on the issuer’s site or PDS.
The three ETFs at a glance
One all-in-one fund, and two building blocks. Knowing which role each plays is the whole game.
ASX: DHHF · Betashares
Diversified All Growth
0.19% fee · ~2.2% yield
~8,000 shares across Australia and the world, 100% growth, rebalanced for you. One trade and you’re done.
🧩 Role: a complete equity portfolio in a single ETF
ASX: VAS · Vanguard
Australian Shares
0.07% fee · ~3.1% yield
The ASX 300 — the biggest Australian companies. Cheapest fee, highest franked income, but concentrated in banks and miners.
🇦🇺 Role: your Australian-shares slice
ASX: VGS · Vanguard
International Shares
0.18% fee · ~1.7% yield
~1,260 large global developed-market companies (ex-Australia), heavily US/tech-weighted. Your international diversification.
🌏 Role: your global-shares slice
Full comparison
| Feature | DHHF | VAS | VGS |
|---|---|---|---|
| Issuer | Betashares | Vanguard | Vanguard |
| What it holds | ~8,000 global + Aus shares | ASX 300 (Aus) | ~1,260 global ex-Aus |
| Management fee | 0.19% | 0.07% | 0.18% |
| Trailing yield* | ~2.2% | ~3.1% | ~1.7% |
| Franking | Partial (~72%) | High (~82%) | Minimal |
| Diversification | Whole world | Australia only | Global ex-Aus |
| Number of funds to manage | Just 1 | Part of a DIY mix | Part of a DIY mix |
| Rebalancing | Automatic | You do it | You do it |
| Control over Aus/world split | Fixed by Betashares | Full | Full |
| Best for | Set-and-forget investors | DIY home-bias slice | DIY global slice |
*Trailing 12-month distribution yields are indicative and move with markets and distributions. Fees and franking percentages per issuer data, May 2026.
Betashares Diversified All Growth
Betashares · ASX: DHHF
DHHF is the simplest serious portfolio an Australian can own. In a single ASX trade you get roughly 8,000 shares spanning Australian and global developed and emerging markets — 100% in growth assets, with no bonds or cash drag. Betashares maintains the underlying allocation and rebalances it for you, so you never touch it.
✅ Strengths
- One trade, whole-world portfolio — radical simplicity
- Auto-rebalanced — no spreadsheets, no maintenance
- 100% growth — maximum long-run return potential
- Lowest fee among all-in-one diversified ETFs (0.19%)
- Brilliant for beginners and busy set-and-forget investors
⚠️ Trade-offs
- Slightly higher fee than building it yourself with VAS + VGS
- No control over the Australia-vs-world split
- 100% growth = high volatility — not for the faint-hearted
- Less franking than a VAS-heavy DIY portfolio
- Smaller fund / younger than the Vanguard giants
Verdict: the best choice if you value simplicity over control and want a genuine “buy it monthly and ignore it” portfolio. This is the fund for people who’d otherwise never get around to building one.
Vanguard Australian Shares
Vanguard · ASX: VAS
VAS tracks the ASX 300 — essentially the entire Australian share market in one fund, at a rock-bottom 0.07% fee. It’s the cheapest of the three and pays the highest, most heavily franked income, which is why it’s the default “home” slice in most DIY Australian portfolios. The catch is concentration: the ASX is dominated by a handful of banks and miners, so VAS is far less diversified than its ~300 holdings suggest.
✅ Strengths
- Cheapest fee of the three (0.07%)
- High, heavily franked income — tax-friendly for Aussies
- Home-currency, home-market — no FX exposure
- Huge, long-established Vanguard fund
⚠️ Trade-offs
- Concentrated in banks and miners (top 10 ≈ 47%)
- Australia is ~2% of the world — no global growth on its own
- Needs a global fund (like VGS) alongside it for real diversification
- Higher income = potentially more tax if held outside super
Verdict: an excellent component, not a complete portfolio. VAS shines as the Australian slice of a DIY mix — most people pair it with VGS rather than holding it alone.
Vanguard MSCI International Shares
Vanguard · ASX: VGS
VGS holds around 1,260 large companies across the world’s developed markets — the US, Japan, the UK, Europe and more — but deliberately excludes Australia. It’s the global-diversification half of a DIY portfolio, pairing naturally with VAS. Because it’s heavily weighted to the US (and therefore to big tech), it captures the growth engines VAS misses, though its income is lower and largely unfranked.
✅ Strengths
- Global developed-market diversification in one fund
- Exposure to US tech giants VAS can’t give you
- Reasonable 0.18% fee for global coverage
- Complements VAS perfectly in a DIY core
⚠️ Trade-offs
- Little or no franking — foreign companies, foreign tax
- Lower yield (~1.7%) — it’s a growth play, not income
- Excludes emerging markets — add VGE if you want them
- Currency exposure (unhedged) adds volatility
Verdict: the global engine of a DIY portfolio. On its own it has no Australian exposure or franking, so most investors hold it alongside VAS rather than solo.
🇦🇺 The franking factor (why Aussies don’t just buy VGS)
Here’s the genuinely Australian wrinkle. Franking credits represent company tax already paid in Australia — and as an investor you can use them to reduce your own tax bill, sometimes receiving a refund. VAS, packed with Australian banks and miners, carries high franking (~82%), so its real after-tax return to an Australian can be better than the headline yield suggests.
VGS, holding foreign companies, gets little or no franking. That’s not a flaw — it’s the price of global diversification — but it’s why many Australians deliberately “home-bias” toward VAS rather than going all-global. DHHF sits in the middle, with partial franking (~72%) reflecting its mixed Aus-and-world holdings.
The practical takeaway: franking is a real reason a DIY VAS + VGS investor might tilt more heavily to VAS than DHHF’s fixed allocation does — and a reason not to judge these funds on raw yield alone.
So which should you buy?
The 10-second decision
- Want one fund and zero maintenance? → DHHF. Buy it monthly, ignore it forever.
- Want to control your Australia-vs-world split and shave the fee? → VAS + VGS (the classic two-fund core).
- Care a lot about franking credits / Australian income? → lean on VAS within a DIY mix.
- Want maximum global growth and don’t need Aussie income? → weight toward VGS (plus VAS for some home bias).
- Brand new and likely to overthink it? → DHHF removes every decision after the first one.
A common real-world pattern: beginners start with DHHF for pure simplicity, then some graduate to a VAS + VGS split later when they want more control or to optimise franking. Both are sound. The worst option is analysis paralysis that keeps you out of the market entirely — time in the market beats fine-tuning the perfect three-letter ticker.
How to actually buy DHHF, VAS or VGS
Whichever side you land on, you buy these the same way: through a broker or investing platform with ASX access. One option built by the makers of DHHF is Betashares Direct — it offers brokerage-free trading on Betashares funds, auto-invest, and access to VAS and VGS too, so it works whether you go one-fund or DIY.
Sign up through the link below and you’ll get a $20 bonus when you make a deposit of $50 or more — effectively a free head-start on your first investment.
Get $20 with Betashares Direct →Betashares Direct isn’t the only option — Stake, Pearler and CMC Invest also give ASX access, and the right platform depends on your fees, features, and whether you want auto-invest (we compare them head-to-head here). But if you’re buying DHHF anyway, going direct with the bonus is a tidy way to start — there’s a full Betashares Direct review if you want the detail first. (We may earn a small commission if you sign up through our link — see the disclosure below.)
Frequently asked questions
Is DHHF better than VAS and VGS?
It’s not strictly better — it’s different. DHHF is a single all-in-one ETF holding ~8,000 global shares (including Australia) at 0.19%, so it’s the simplest. VAS (Aus shares, 0.07%) and VGS (global ex-Aus, 0.18%) are two building blocks you combine and rebalance yourself, giving more control over your Australia-vs-world split at a slightly lower blended fee. DHHF wins on simplicity; VAS + VGS wins on control.
What’s the difference between VAS and VGS?
VAS holds Australian shares (the ASX 300) and pays a higher, heavily franked dividend, but is concentrated in banks and miners. VGS holds ~1,260 large global developed-market companies excluding Australia, is heavily weighted to US tech, pays a lower and largely unfranked distribution, and provides international diversification. Many Australians hold both to balance home-market franking with global exposure.
Can I just buy DHHF and nothing else?
Yes — that’s the entire point of DHHF. It’s a complete one-fund equity portfolio: ~8,000 shares across Australian and global markets in a single trade, rebalanced for you. The trade-offs are a slightly higher fee than building it yourself, and being 100% growth (no bonds), which means high volatility you need the stomach for.
Why do Australian investors care about franking credits?
Franking credits represent company tax already paid in Australia, which investors can use to reduce their own tax bill (and sometimes receive as a refund). Australian-share ETFs like VAS carry high franking, which can make their after-tax return more attractive to Australians than the headline yield suggests. Global ETFs like VGS have little franking because the underlying companies pay foreign tax.
How do I actually buy these ETFs in Australia?
Through a broker or platform with ASX access — Betashares Direct, Pearler, CMC Invest, Stake and others. Open an account, deposit funds, search the ticker (DHHF, VAS or VGS) and place a buy order. This is general information only, not personal financial advice — consider the relevant PDS and your own situation, or speak to a licensed adviser.
Disclosure & disclaimer: This article contains an affiliate/referral link for Betashares Direct — if you sign up through it, MoneyHack HQ may earn a commission and you receive a $20 bonus on a qualifying deposit (currently $50+), at no extra cost to you. The author personally invests in DHHF. This is general information only and not personal financial or tax advice; it doesn’t consider your objectives or circumstances. ETF prices, fees, yields, franking and bonus terms change — always read the current PDS and Target Market Determination, confirm live details with the issuer/platform, and consider seeking advice from a licensed financial adviser before investing. Past performance is not indicative of future returns.
Ready to start?
Pick your side and get invested
One fund or build-your-own, the hardest part is starting. If you’re buying DHHF, VAS or VGS, Betashares Direct gets you going with a $20 bonus on a $50+ deposit.
$20 bonus on a $50+ deposit · general information, not advice · read the PDS
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