Vanguard Australian Fixed Interest Index ETF (VAF) Review & Analysis
- −0.8% in September (total return), behind the median Australian bonds ETF at −0.4%.
- Investors added a net $66m (1.7% of the fund). That ranked #27 of 508 ETFs for new money.
- The unit price closed the month at $44.91, 4% below its 12-month high (range $44.64 to $46.99).
- 🏆 Won Lowest fee: Australian bonds in the September ReviewETF Awards.
About VAF
VAF is Vanguard's Australian Fixed Interest ETF. It tracks the Bloomberg AusBond Composite 0+ Yr Index, the standard benchmark for the Australian bond market, holding hundreds of investment grade bonds issued by the federal government, the states, overseas agencies and companies. It is passive and low cost.
Most of the fund is in government and semi government bonds, so credit risk is low. Interest rate risk is the bigger issue. The fund has a medium to long duration, which means its price rises when interest rates fall and falls when they rise, as happened in 2022. Income is paid quarterly as unfranked interest. Over time, high quality bonds have tended to cushion a portfolio when share markets fall, though not in every downturn. There is no currency risk.
VAF is often used as the defensive core of a balanced or retirement portfolio. The closest alternatives are IAF and OZBD, while VBND adds global bonds. See VAF vs IAF, VAF vs BOND and VAF vs VACF.
VAF distributions and dividend dates
VAF pays distributions quarterly, usually going ex-distribution in January, April, July and October, with payment about 16 days after the ex-date.
The latest distribution was $0.3129 per unit (0% franked), ex-distribution on 1 October 2026 and paid on 16 October 2026. To receive it you need to own VAF before the ex-date.
Its distribution yield over the past 12 months is about 3.5%. Distributions vary and past payments are not a guide to future ones.
From ASX announcements, updated nightly. See every ETF in the dividend calendar.
Compare VAF with
| Fee | 0.10% | 0.10% |
| 1 year | −0.4% | −0.4% |
| 5 yrs p.a. | −0.1% | −0.2% |
| Size | $3.9bn | $3.7bn |
| Fee | 0.10% | 0.10% |
| 1 year | −0.4% | −0.0% |
| 5 yrs p.a. | −0.1% | −0.3% |
| Size | $3.9bn | $52m |
| Fee | 0.10% | 0.20% |
| 1 year | −0.4% | +0.9% |
| 5 yrs p.a. | −0.1% | +1.5% |
| Size | $3.9bn | $704m |
| Fee | 0.10% | 0.29% |
| 1 year | −0.4% | +3.6% |
| 5 yrs p.a. | −0.1% | – |
| Size | $3.9bn | $365m |
VAF price by TradingView
| Stock Code | VAF |
|---|---|
| Fund Manager | Vanguard |
| Asset Class | Australian bonds |
| AUM | $3.9bn |
| MER (%) | 0.10% |
| Net flows (Sep) | +$66m |
| Last Price | $44.91 |
| 52-Week Range | $44.64 – $46.99 |
| Bid/Ask Spread | 0.04% |
| Listing Date | 31/10/2012 |
| Exchange | ASX |
| Index tracked | Bloomberg AusBond Composite 0+ Yr Index |
| Issuer website | Vanguard ↗ |
Performance (% return)
$10,000 invested…
Value at 30 September 2026 with distributions reinvested, before tax and brokerage.
Total returns including distributions, to 30 September 2026. 1M, 1Y, 3Y and 5Y bars are cumulative.
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