Vanguard International Credit Securities Index (Hedged) ETF (VCF) Review & Analysis
MER · Top 50%AUM · Top 50%1Y Return · #303 of 4263Y Return · #255 of 3005Y Return · #206 of 225
What's new this monthData to 30 September 2026
−2.1% in September (total return), behind the median international bonds ETF at −1.8%.
The unit price closed the month at $35.65, near its 12-month low (range $35.60 to $40.48).
About VCF
VCF is an international bonds ETF from Vanguard, listed on the ASX since December 2015. With $172m under management it is number 13 of 48 international bonds ETFs by size. The management fee is 0.30% a year, about $30 on every $10,000 invested, cheaper than the typical international bonds ETF at 0.50%.
Over five years it has returned −0.9% a year including distributions, against −0.9% for the median international bonds ETF. With its focus on bonds & fixed income, it is the kind of fund many investors use as a smaller satellite holding alongside a diversified core.
VCF distributions and dividend dates
VCF pays distributions monthly, with payment about 15 days after the ex-date. (Pattern estimated from recent payments.)
The latest distribution was $0.2122 per unit (0% franked), ex-distribution on 1 October 2026 and paid on 16 October 2026. To receive it you need to own VCF before the ex-date.
Its distribution yield over the past 12 months is about 10.0%. Distributions vary and past payments are not a guide to future ones.
From ASX announcements, updated nightly. See every ETF in the dividend calendar.
1 year ago$9,9363 years ago$11,3145 years ago$9,545
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.
VCF at a glance: strengths and things to watch
👍 Strengths
Long track record. Listed since 2015, through several market cycles.
⚠️ Things to watch
Nothing stands out against its category.
Worked out from VCF's fees, size, flows, returns and trend against the 48 international bonds ETFs in Australia, to 30 September 2026. General information, not a recommendation.
VCF's moving averages are tangled and the price is moving sideways. The trend hasn't picked a direction yet.
Why it matters: Bases are where the next big move starts. A breakout can begin a new uptrend, while a breakdown can start a long fall. Buying a satellite before the breakout often means waiting months for nothing to happen.
At ETF Adviser the core of a portfolio stays invested through every stage, and satellite ETFs are only bought in an uptrend. Members get a weekly update on which ETFs are breaking out of a base and which trends have broken.
Why no chart? Bond, cash and currency fund prices drop each time a distribution is paid, so a price chart makes them look worse than they are. Check the total returns above instead.
How VCF has done against the Bloomberg Global Aggregate Corporate & Government-Related Scaled Index (AUD hedged), after fees. For an index fund, a small shortfall roughly the size of the fee is normal.
Best-endeavours estimate. Built from each issuer's published holdings, which may be weeks or months old, may cover only part of a fund (some publish only their top 10) and are matched by company name. Figures may be incomplete or inaccurate. Check the issuer's website and PDS before relying on them. General information only.
Same holdings is the share of VCF's money in companies the other ETF also holds, weighted by size. No other ETF shares much with VCF, so these are ETFs in the same category. See every ETF like VCF →
VCF vs its closest alternatives
What actually differs between VCF and the ETFs most like it. Data to 30 Sep 2026.
VIF Vanguard International Fixed Interest Index (Hedged) ETF
VIF is cheaper (0.20% vs 0.30%), worth about $6,919 on $100,000 over 20 years.
Over 3 years, a year: VCF +4.2%, VIF +2.3% (VCF ahead by 1.9 percentage points).
VIF is about 5 times larger ($862m vs $172m), which usually means tighter trading spreads.
VCF charges a management fee (MER) of 0.30% a year, according to the TMX Australia monthly funds report as at 30 September 2026.
How big is VCF?
VCF had $172m in funds under management as at 30 September 2026.
How has VCF performed?
VCF returned −0.6% over the year to 30 September 2026 (total return, including distributions). Over three years it returned +4.2% a year. Past performance is not a reliable indicator of future performance.
Who manages VCF?
VCF is managed by Vanguard and has been listed since December 2015.
Is VCF franked?
Generally no. VCF invests outside Australia, so its distributions carry little or no franking credits. Franking comes from Australian companies that have paid tax here.
Is VCF currency hedged?
Yes. VCF is currency hedged, so changes in the Australian dollar have little effect on its returns. You get the return of the underlying investments in their local currency, less a small cost of hedging.
Disclaimer
This review is general information only and does not take into account your objectives, financial situation or needs. Consider the Vanguard product disclosure statement (PDS) and target market determination (TMD) before investing. Past performance is not a reliable indicator of future performance.
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