If you own ETFs in Australia, there’s a good chance Vanguard or Betashares has some of your money. Between them they manage more than $171 billion across around 140 ASX-listed ETFs. Yet most investors never properly compare them, even though many of their ETFs look almost identical.
I put six popular matchups head to head on fees, returns, structure and risk. Here's what I found. Tap any button to jump to that part of the video.
The background: two very different businesses
Vanguard was founded in the US in 1975 by Jack Bogle, the godfather of low-cost index investing. His idea: own the whole market and keep costs as low as possible. Vanguard now manages around US$12 trillion worldwide. It listed its first ASX ETFs in 2009 and, as of May, had 36 here with over $100 billion invested.
Betashares is a local, founded in Australia in 2009. As well as broad index funds, it has built a huge range of specialist ETFs: tech, digital assets, gold, commodities and bonds. As of May it had about 100 ETFs and $70 billion under management.
Round 1: Australian shares
On $100,000 the fee difference is about $30 a year. If you already hold VAS, don't rush to switch. Selling could trigger capital gains tax that wipes out years of that saving. You could keep VAS and put new money into A200 instead.
Round 2: International shares (unhedged)
The 0.10% fee gap is about $100 a year on $100,000. Over 20 years, with compounding, that can add up to several thousand dollars. BGBL doesn't have a five-year track record yet, but for new money it's the stronger option on cost alone.
Round 3: Hedged international
The same story with the currency-hedged versions, VGAD vs HGBL. Vanguard's is older and bigger, Betashares' is about 0.10% cheaper, and three-year returns are similar. Betashares wins, but the gap is genuinely tiny.
Round 4: All-in-one portfolios
DHHF looks like the clear winner, but it's 100% shares with no defensive buffer, in one of the strongest periods for global shares in years. That's not a fee story, it's a risk story. DHHF suits maximum growth if you can stomach the swings. VDHG gives you a small cushion of bonds.
Round 5: Dividend ETFs
A fund can pay attractive regular income and still deliver a much lower overall return. Judge income ETFs on total return (income plus price change), not just how often they pay or how big the yield looks.
Round 6: Asian shares
ASIA's huge return came from concentration in names like SK Hynix, Samsung and TSMC. The same concentration means it could fall much harder if Asian tech turns. One is a broad regional holding, the other is a deliberate tech bet.
Your questions answered
Is one provider safer? Vanguard is older and much bigger globally, but that doesn't make Betashares unsafe. Both are large, regulated issuers, and ETF assets are generally held by an independent custodian, separate from the issuer's own business. You still carry the normal market risk of whatever the ETF owns.
Which is cheaper? Vanguard has the lower average fee, but Betashares is cheaper in two big core categories: Australian shares (A200 0.04% vs VAS 0.07%) and international shares (BGBL 0.08% vs VGS 0.18%).
Should I switch from VAS to A200? Probably not. The saving is about $30 a year per $100,000, and capital gains tax on selling could cost far more.
Which offers more choice? Betashares, easily: tech, semiconductors, cybersecurity, defence and more. Thematic ETFs can be more expensive, concentrated and volatile.
Who else is out there? BlackRock's iShares (home of IVV), VanEck (smart beta and thematics), Global X (commodities and sectors) and State Street's SPDR range.
The verdict: neither
An ETF provider isn't a football team you need to stay loyal to. You can mix and match: A200 for Aussie shares, BGBL for international, VHY for income, and something else entirely for a satellite position.
1. What job is this fund doing in my portfolio?
2. What does it actually hold underneath the label?
3. What does it cost me in real dollars, not just percentages?
4. Did it outperform because it's better, or because it took more risk?
Watch the full video on YouTube →
ETFs named are examples for comparison, not recommendations. Fees, returns and fund details are as discussed at the time of the video (mid-2026) and will change. Check the PDS and issuer’s website. Consider tax before selling any investment.