ASX exchange-traded funds (ETFs) have become one of the most popular ways for Australians to build long-term wealth.
Few providers have benefited more from that trend than Vanguard. Its low fees, broad diversification and simple buy-and-hold approach have made its ETFs favourites among everyone from first-time investors to retirees.
With FY26 now behind us, here's a look at how three of Vanguard's most widely held ASX-listed ETFs performed.
Vanguard Australian Shares Index ETF (ASX: VAS)
The top Vanguard ASX ETF aims to track the performance of the S&P/ASX 300 Index (ASX: XKO). This gives investors exposure to around 300 of Australia's largest listed companies.
Its biggest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), reflecting the dominant role financials and mining continue to play in the Australian sharemarket.
At the time of writing, VAS has returned approximately 3% over the past 12 months. Income remains one of its biggest attractions. Investors are set to receive a dividend payout of 48.99 cents per unit, to be paid on 16 July.
For investors seeking diversified exposure to Australian blue chips and a healthy stream of dividend income, VAS remains a popular core holding.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF provides exposure to more than 1,300 large and mid-sized companies across developed markets outside Australia.
Among its largest holdings are Microsoft Corp (NASDAQ: MSFT) and NVIDIA Corp (NASDAQ: NVDA), two companies that have continued to benefit from strong demand for artificial intelligence technologies.
VGS has been the standout performer of the three flagship Vanguard ETFs, delivering a gain of around 14% over the past year. Investors will also receive an 80.11 cents per unit distribution on 16 July.
The ASX ETF remains a popular choice for Australians looking to diversify beyond the domestic market and gain exposure to many of the world's highest-quality businesses.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Income investors continue to favour the Vanguard Australian Shares High Yield ETF. Rather than tracking the broader market, VHY focuses on Australian companies expected to deliver above-average dividend yields.
Its largest holdings include Rio Tinto Ltd (ASX: RIO) and Westpac Banking Corp (ASX: WBC), highlighting the important role banks play in generating dividend income.
The ASX ETF has gained approximately 11% over the past 12 months. Investors are also set to receive a distribution of 40.82 cents per unit, payable on 16 July.
Foolish takeaway
All three ASX ETFs delivered positive returns in FY26, but each appealed to a different type of investor.
VAS continued to offer broad exposure to Australia's largest companies and dependable income. VGS rewarded investors seeking global growth, producing the strongest capital return of the group. Meanwhile, VHY remained an attractive option for those prioritising dividend income without having to select individual high-yield shares.
Together, they demonstrate why Vanguard ETFs continue to play a central role in many long-term investment portfolios.
The post How Vanguard's biggest ASX ETFs performed in FY26 appeared first on The Motley Fool Australia.
Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft and Nvidia. The Motley Fool Australia has recommended BHP Group, Microsoft, Nvidia, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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