Australia's ten largest ETFs track just six kinds of index. VAS, A200 and IOZ all hold the biggest ASX companies and are 91 to 95% the same. IVV and VTS are 88% the same. The ones that genuinely differ are VHY (high yield), NDQ (58% technology) and QUAL (quality screen), because their index rules pick companies differently.
Why the index matters more than the issuer
An index ETF doesn't choose its holdings. It copies an index, which is a rulebook written by a provider such as S&P, MSCI, FTSE, Solactive or Nasdaq. Three rules decide almost everything about what you own:
- Selection. Which companies get in: the 200 largest, the 500 largest, only high-yielding ones, only "quality" ones.
- Weighting. How much of each. Most use market-cap weighting, where bigger companies get bigger slices. Some cap the largest holdings.
- Rebalancing. How often the list is reviewed, usually every quarter.
Two ETFs from different issuers that use similar rules end up nearly identical. Two ETFs from the same issuer with different rules can be very different.
The ten at a glance
| ETF | Index | Companies | Fee | Size | 5 years (a year) |
|---|---|---|---|---|---|
| VAS | S&P/ASX 300 | about 300 | 0.07% | $26.7bn | 6.5% |
| VGS | MSCI World ex Australia | about 1,300 | 0.18% | $18.7bn | 11.8% |
| IVV | S&P 500 | about 500 | 0.04% | $14.9bn | 13.4% |
| A200 | Solactive Australia 200 | 200 | 0.04% | $11.1bn | 6.9% |
| IOZ | S&P/ASX 200 | 200 | 0.05% | $9.7bn | 6.8% |
| NDQ | Nasdaq-100 | 100 | 0.48% | $9.5bn | 15.3% |
| QUAL | MSCI World ex Australia Quality | about 300 | 0.40% | $9.2bn | 11.4% |
| VHY | FTSE Australia High Dividend Yield | about 90 | 0.25% | $8.2bn | 10.2% |
| VGAD | MSCI World ex Australia, hedged | about 1,300 | 0.21% | $7.9bn | 10.8% |
| VTS | CRSP US Total Market | 3,500+ | 0.03% | $7.3bn | 12.4% |
Fund size and total returns to 30 September 2026 (TMX Australia). Company counts are approximate and change as indexes are reviewed.
5-year return a year for the ten largest ETFs
Australian shares: VAS, A200, IOZ and VHY
VAS, A200 and IOZ all weight companies by size, after adjusting for shares that are not freely traded (called free-float). The main difference is how far down the list they go.
- VAS tracks the ASX 300, so it adds about 100 smaller companies. They are a small slice of the fund, but they explain most of its small return gap. See VAS vs A200.
- IOZ tracks the S&P/ASX 200, the benchmark most Australian fund managers measure themselves against, as does STW.
- A200 tracks a Solactive index of the 200 largest companies. Solactive indexes are generally cheaper to license, which helps keep its fee at 0.04%.
The result is three funds with the same top five (BHP, Commonwealth Bank, NAB, Westpac and ANZ) making up 33 to 36% of each.
VHY is different. Its index ranks companies on forecast dividend yield, and limits how much any one company or industry can take up. That gives it about 90 companies, more in banks, miners and energy, and almost no technology. It has done well recently (10.2% a year over five years) but it is a tilt, not the whole market. VAS and VHY are only about 65% the same. See VAS vs VHY.
Same market, very different mixes
US shares: IVV, VTS and NDQ
- IVV tracks the S&P 500. A committee picks about 500 large US companies, and new members generally need to be profitable. Weighting is by size, so Apple, Nvidia and Microsoft are each 6 to 8% of the fund.
- VTS tracks the whole US market, more than 3,500 companies. But because it is weighted by size, the extra mid and small companies make up only a modest slice, which is why it is 88% the same as IVV. VTS is an Australian listing of a US-domiciled Vanguard fund, so US tax forms apply. See IVV vs VTS.
- NDQ tracks the Nasdaq-100: the 100 largest non-financial companies listed on the Nasdaq exchange. That rule alone strips out banks and insurers and leaves a fund that is 58% technology. Its top 10 are about 49% of the fund. See IVV vs NDQ.
Global shares: VGS, VGAD and QUAL
- VGS tracks the MSCI World ex Australia index: about 1,300 large and mid-sized companies across more than 20 developed countries. The US is by far the largest part, so its biggest holdings are the same US giants, but its top 10 are only 29% of the fund.
- VGAD holds the same index with currency hedging, so the Australian dollar's moves are removed. That is the only real difference, and over the past year it was worth 7 points. See VGS vs VGAD.
- QUAL starts from the same universe, then keeps only about 300 companies with high return on equity, stable earnings and low debt. It ends up with more health care (16%) and fewer banks. It is only about 41% the same as VGS. See VGS vs QUAL.
How much these ETFs overlap
How much of each pair is the same
A useful way to read this: pairs above about 85% are close substitutes, so holding both adds a second fee without much extra spread. Pairs below about 60% do different jobs. Australian and global share funds have almost no overlap at all, which is why they pair well. Check any combination in the overlap calculator.
Management fee for each of the ten
Rebalancing: the quiet part of the rulebook
Most of these indexes are reviewed every quarter. Companies that have grown move in, ones that have shrunk drop out, and weights are reset. For broad market-cap funds this changes very little, because the weights already move with share prices. For screened indexes like VHY or QUAL, a review can swap out a bigger share of the fund, because a company's yield or quality score can change even when its size doesn't. You don't need to do anything when this happens; the ETF handles it. But it is one reason screened funds can behave differently from the market in any given year.
Compare the Australian share ETFs side by side →
Common questions
What index does VAS track?
The S&P/ASX 300, about 300 of the largest companies on the ASX, weighted by size. A200 tracks a Solactive index of the top 200 and IOZ the S&P/ASX 200.
Is VGS the same as IVV?
No, but they overlap by about 65%. IVV holds about 500 US companies; VGS holds about 1,300 across more than 20 developed countries, with the US the largest part.
Why is NDQ so heavy in technology?
Its index takes the 100 largest non-financial companies on the Nasdaq exchange, where most big US tech companies list. That leaves about 58% in technology and almost no banks.
Is VTS different from IVV?
VTS holds the whole US market and IVV only the 500 largest, but because both weight by size they are about 88% the same. IVV returned 13.4% a year over five years and VTS 12.4%.
Joshua Stega is a financial adviser with 20 years' experience and the founder of ETF Adviser. He built ReviewETF to make every Australian ETF easy to find and compare.
General information only. It does not take into account your objectives, financial situation or needs. Consider the PDS and TMD before investing. Past performance is not a reliable indicator of future performance. Data as at 30 September 2026.