VAS vs A200 vs IOZ: Which Australian Shares ETF Is Best?

This is the definitive, data-driven comparison. We'll compare fees, performance, holdings, distributions, liquidity, and everything else that actually matters — then give you a straight answer.

The Snapshot

STW is included for reference — it's Australia's original ETF (launched 2001) but has been losing market share to the newer options.

Performance: $10K Invested 5 Years Ago

$10,000 invested 5 years ago would be worth:

A200 leads — and it's not a coincidence that it also charges the lowest fee. Over 5 years the spread is $261 between first and last. That's small in dollar terms, but it's consistent: the cheapest fund wins.

Calendar Year Returns

Year by year, these funds track within 1% of each other. In 2022 (the only down year), A200 lost less than VAS. In 2023, VAS edged ahead because the ASX 300 captured more mid-cap recovery. The differences are marginal.

Annualised Returns

The 5-year annualised numbers differ because the CBOE report uses total return (cumulative), while provider websites use slightly different calculation methodologies. The key point: they're all within a percentage point of each other.

Fees: How 0.03% Adds Up

The fee difference looks tiny: A200 charges 0.04%, IOZ charges 0.05%, VAS charges 0.07%. That's a spread of just 0.03%.

But fees compound. On a larger portfolio over a longer time horizon, even 0.03% starts to matter.

Over 30 years on a $100K investment, the fee gap between A200 and VAS is roughly $14,000. Meaningful, but not life-changing. If you already hold VAS and are considering switching purely for fees, the CGT event from selling would likely cost more than the fee saving.

What You Pay in Dollar Terms

At any realistic portfolio size, the annual dollar difference between these three is negligible.

Holdings: What You Actually Own

All three funds are dominated by the same stocks. CBA and BHP alone make up roughly 20% of each fund. The top 10 holdings account for 47–50% of each portfolio.

Top 10 Holdings Side by Side

The overlap is almost total. If you own any one of these funds, you effectively own the same Australian market exposure.

📝The One Real Difference: 200 vs 300 Stocks

The most meaningful structural difference is that VAS tracks 300 stocks while A200 and IOZ track 200. This means VAS holds an extra ~100 small-to-mid cap companies that don't make the ASX 200 cut.

In practice, those extra 100 stocks represent less than 5% of VAS's total portfolio weight. The top 200 companies dominate VAS just as much as they dominate A200 and IOZ. But in years where small caps rally, VAS can edge ahead — and in years where small caps drag, VAS can slightly underperform.

Fund Size and Liquidity

VAS is Australia's largest ETF overall — by a significant margin. It trades $823 million per month, nearly double A200's trading volume. All four funds have tight spreads and deep liquidity. You can buy or sell millions of dollars of any of them without moving the price.

IOZ attracted the most new money in February 2026 ($236M), which suggests it's increasingly popular with new investors — likely because of its low unit price (~$37) making it accessible for smaller regular purchases.

Distributions and Yield

All four funds pay quarterly distributions. The yields are similar because they hold nearly identical stocks:

A200's lower stated yield reflects timing differences in how distributions are paid, not a fundamentally lower income. All four funds receive the same dividends from the same companies. The total return (capital growth + distributions) is what matters — and that's where A200 leads.

The Index Difference

This is the most misunderstood point in the VAS vs A200 vs IOZ debate:

A200 uses a different index provider (Solactive instead of S&P Dow Jones). This is partly why BetaShares can charge a lower fee — Solactive licences are cheaper. The Solactive Australia 200 and S&P/ASX 200 are functionally identical — both hold the 200 largest ASX-listed companies weighted by market cap.

VAS tracks the broader ASX 300 index. The extra 100 stocks add diversification at the margin but have minimal impact on returns because they're so small.

🎯The Verdict🎯

These funds are 95% identical. You're buying the same Australian market exposure regardless of which one you pick. But there are differences that matter at the margin:

➡️Choose A200 if: You want the lowest fee (0.04%), you're building a new position, or you're using BetaShares Direct (zero brokerage on BetaShares products). A200 has delivered the best 5-year total return of the group, driven by its fee advantage.

➡️Choose IOZ if: You prefer iShares/BlackRock, you want a lower unit price (~$37 vs ~$154 for A200) for easier DCA purchases, or you want to track the S&P/ASX 200 specifically. IOZ had the strongest inflows in February 2026.

➡️Choose VAS if: You want the broadest exposure (300 vs 200 stocks), you want Australia's most liquid and largest ETF, or you already hold VAS and the CGT from selling would outweigh any fee saving. VAS is the most traded Australian shares ETF by a wide margin.

➡️Don't switch if you already own one. The fee difference between 0.04% and 0.07% is $30 per year on $100,000. Selling would trigger a CGT event that likely costs more than years of fee savings. If you're starting fresh, A200 or IOZ have the edge on fees.

The honest answer: you can't go wrong with any of them. The far more important decision is your portfolio construction and the mix between Australian and international shares — not which Australian shares ETF you pick.

Research all three funds in detail on ReviewETF — compare fees, performance, holdings, and distributions side by side.

Sources: CBOE Australia Monthly Funds Report (February 2026), BetaShares (23 March 2026), BlackRock Australia (23 March 2026), Vanguard Australia (28 February 2026), ReviewETF.com.au.

This article is general information only and does not constitute financial advice. Consider your own circumstances and seek professional advice before making investment decisions.