Vanguard Investing Novice Question

AussieTiger on 10/09/2025 - 12:22

I am a novice when it comes to investing, so looking for some basic help.

I have VGS (About $12k) and VAS ($5k) AND VDHG (about $9K) with vanguard.

I have since done some reading and have learnt that VDHG is a mix of VGS and VAS anyway. Should I consolidate and focus on either just VDHG or VGS/VAS but keep the other one, or do I need to consolidate?

EG, from now on I want to just focus on VDHG, is there a downside if I just put all future investments in there, but do not consolidate the other two and just leave them be without investing anymore in them?

I hope this makes sense. :/

Financial

Comments

  • JIMB0 on 10/09/2025 - 12:38
    +5

    VDHG has a lot of exposure to Australian shares. Personally I hold VGS as it's a world index. I also hold a high yield aussie fund as it offers a good return after considering franking credits.

    • HardQuiz on 10/09/2025 - 13:13

      high yield aussie fund as it offers a good return after considering franking credits.

      Which is ?

      • JIMB0 on 10/09/2025 - 13:21
        +1

        VHY or SYI

  • Anthonese on 10/09/2025 - 12:39
    +4

    is there a downside if I just put all future investments in there, but do not consolidate the other two and just leave them be without investing anymore in them?

    IME not really apart from duplication. you could sell the VAS and VGS but you would incur CGT (but would get a 50% discount if held for > 12 months). But it sounds like it's a rather minimal amount invested so i wouldn't bother cause of brokerage, etc

    If you just want one ETF for Australia, global developed and emerging markets, DHHF is another good option

    • Dr Phil on 11/09/2025 - 12:24
      +1

      GOLD GOLD GOLD!

      Its skyrocketing with all this global debt and money printing

      Anyone looking for a great return and hedge against currency devaluations on a grand scale (especially AUD) should invest 20% to 50% in a Gold ETF such as ASX:GOLD (Global X Physical Gold Structured)

      Its up 31% YTD and its only just started heading for the MOON again
      And up 45% over the last 12 months - BOOM!
      Both of these returns after Gold went sideways for 5 months this year

      Hold for more than 12 months and any profits come under CGT so you pay half the tax

      Certainly beats earning 4.25% interest over 12 months in a decent savings account then paying full income tax (what a rort)
      Also a better investment than risky stock ETFs, some of which collapsed big time after the Trump tarrif fiasco and then needed to make up all the lost ground (which they did eventually)

  • star-ggg on 10/09/2025 - 12:42
    +6

    Just leave them and adjust future investment allocations. No point triggering a CGT event.

    • AussieTiger on 10/09/2025 - 12:46

      Thank you! This is what I am thinking too! Now just to decide what to focus on for all future investments!!

  • surfingedge on 10/09/2025 - 12:42
    +4

    If you keep 3 ETFs you will have 3 sets of entries on your tax return every year and you will have to keep 3 sets of records. But it's not that difficult compared to doing it for 1 ETF.

    If you sell you will have to pay tax, which reduces the amount available for compounding. Should you really want to sell, at least wait until you have held all units for 12 months, and do it in a year where you have lower income.

    There's very little point in selling VAS/VGS and putting the money straight back into VDHG. However if you wanted to gamble, you could try and sell at a local high, and hope the price drops before you buy VDHG

    • star-ggg on 10/09/2025 - 12:47
      +1

      Tax return is all pre-filled anyway. The only manual calculation is for CGT events.

      • surfingedge on 10/09/2025 - 12:58

        Yes, but you should still double-check. Manual calculations are also required if your foreign income tax offsets exceed $1000

        • fredblogs on 11/09/2025 - 20:32

          You double-check your pre-fill for managed funds? Impressive, there's like 100 figures to check

  • WoodYouLikeSomeCash on 10/09/2025 - 12:46
    -6

    Individual stock picking will outperform the market.

    • Baysew on 10/09/2025 - 12:56
      +10

      Individual stock picking will underperform the market.

      • mskeggs on 10/09/2025 - 13:19
        +4

        Depends who is picking. I, for example, will underperform.

        • fredblogs on 11/09/2025 - 20:34

          Kinda like saying winning roulette depends on who is betting

      • WoodYouLikeSomeCash on 10/09/2025 - 13:26
        -7

        Not if you have experience. That’s how Warren Buffett made his money for example and consistently outperforms the market.

        If you put the time in and learn financial instruments (covered calls, naked calls & puts, etc.) you can very easily and in a risk averse way outperform the market.

        • onceupon8 on 10/09/2025 - 14:02
          +9

          Warren Buffett’s message is clear: Consistently beating the market is extremely difficult, even for professionals. His advice for most investors? Stick with low-cost, diversified index funds.

          • WoodYouLikeSomeCash on 10/09/2025 - 14:05
            -5

            @onceupon8: If you put in the work, you will outperform the market.

            • star-ggg on 10/09/2025 - 14:29
              +3

              @WoodYouLikeSomeCash: Why are you on OzB instead of the front page of the AFR?

              • WoodYouLikeSomeCash on 10/09/2025 - 14:30

                @star-ggg: People make 100x more than this lmao, I’m just showing that if you put in the work it’s possible to out perform the market.

                • SlickMick on 11/09/2025 - 09:01

                  @WoodYouLikeSomeCash: People lose everything

                  • WoodYouLikeSomeCash on 11/09/2025 - 09:02
                    -1

                    @SlickMick: If you have proper risk management you can definitely make money trading the markets actively.

                    • SlickMick on 11/09/2025 - 09:04
                      +1

                      @WoodYouLikeSomeCash: If you stuff up you can definitely lose everything

                      • WoodYouLikeSomeCash on 11/09/2025 - 09:06
                        -2

                        @SlickMick: The biggest reason for losing money is poor risk management and going on tilt (emotional trading), when you master these skills you will be insulated against substantial loss.

                        • SlickMick on 11/09/2025 - 09:12

                          @WoodYouLikeSomeCash: Buying the wrong stocks is a big reason for losing money

                          • WoodYouLikeSomeCash on 11/09/2025 - 09:15
                            -1

                            @SlickMick: Buying wrong stocks = losing money, even if you only have a 50% hit rate (flip of a coin) you will still make money with proper risk management. Where people lose the lot and can't recover is because they go too heavy, risk all of their money, or double down on the next one in an attempt to "get it all back".

                            • SlickMick on 11/09/2025 - 12:04

                              @WoodYouLikeSomeCash:

                              even if you only have a 50% hit rate (flip of a coin) you will still make money

                              Hopefully, but not necessarily, > $0. But in the long run, the average person will make less money than following an index.

                              with proper risk management

                              lol the loophole

                              • WoodYouLikeSomeCash on 11/09/2025 - 12:06

                                @SlickMick:

                                Hopefully, but not necessarily, > $0. But in the long run, the average person will make less money than following an index.

                                The average person may, but if you put the work in you can easily outperform the index.

                                lol the loophole

                                You don’t believe in managing risk?

                                • SlickMick on 11/09/2025 - 12:09

                                  @WoodYouLikeSomeCash:

                                  You don’t believe in managing risk?

                                  I do indeed. I buy index-based ETFs.

                                  The average person may, but if you put the work in you can easily outperform the index

                                  Some people can. I have no doubt you might have done all right so far. When you're done, come back and let us know how you did over a lifetime.

            • shmoney on 10/09/2025 - 14:30
              +1

              @WoodYouLikeSomeCash: Looks like someone bought Palantir, got lucky and now thinks they're a financial genius. Lol.

              • WoodYouLikeSomeCash on 10/09/2025 - 14:31

                @shmoney: No, trading SPY 0DTE options and weekly stock options.

                • shmoney on 10/09/2025 - 14:51
                  +1

                  @WoodYouLikeSomeCash: I love how you bring up Warren Buffett with how he's able to consistently outperform the market. Then mention 0DTE options which is basically the complete opposite of his investing philosophy.

                  This is hilarious, you can't really make this up.

                  Gambling on options is not investing, let's be honest. Hopefully you’re just LARPing with these options after getting called out for posting a chart that looks way too similar to a Palantir chart.

                  • WoodYouLikeSomeCash on 10/09/2025 - 14:55
                    -2

                    @shmoney:

                    Gambling on options is not investing, let's be honest. Hopefully you’re just LARPing with these options after getting called out for posting a chart that looks way too similar to a Palantir chart.

                    Firstly no Palantir. Secondly, trading the markets on a short term basis is not gambling plenty of people make a living from just trading. The markets are a game of probability like everything in life, if you take a gamblers attitude and gamble it all with no systemic process of course you will lose. Conversely, if you have systemic process and manage your risk you can absolutely outperform the markets with manageable drawdown.

                    • onceupon8 on 10/09/2025 - 17:06
                      +4

                      @WoodYouLikeSomeCash: You are young. When the market is rising, it’s easy to beat the index. When you are young, you think your strategy & systems are awesome. Once you have been investing for a longer period with market corrections & crashes, you will become more aware of your limitations. (I’m not saying no one can beat the market over the long term - just the majority - and with your attitude I can tell you are young & haven’t been investing for more than 20 years so are yet to see all the cycles of the market)

                      • mskeggs on 11/09/2025 - 21:42

                        @onceupon8: 100% agree. These kind of posts were very common in 1999 and 2008.
                        When the market spends two years trending down with limited volatility, all of a sudden the “plenty of people making a living trading” due to their excellent risk management go back to doing normal jobs.

                    • NanoDuke on 11/09/2025 - 08:39
                      +1

                      @WoodYouLikeSomeCash: @WoodYouLikeSomeCash what does the 'Top 5 Losers' tab show?

    • JIMB0 on 10/09/2025 - 13:22

      Maybe if you're an insider or a monkey that throws darts to pick stocks.

  • AussieTiger on 10/09/2025 - 12:59

    Thank you all for your input!

    I think I will not consolidate and sell which will trigger the Capital gains tax, instead I will just focus on one strategy going forward for future investments.

    I am 42 years old, so I would like to access the money by the time I'm 50 maybe. So I will have to have a think about how I want to invest going forward. Happy to listen to any suggestions ! :)

    • soan papdi on 10/09/2025 - 13:11

      Look up DHHF and VDAL. Also top up your super.

    • SlickMick on 11/09/2025 - 09:10

      Good decision. There is no need to consolidate.

      I bought VAS & VHS for a while, but when BetaShares allowed SMSF investing I changed to A200 and BGBL. Nothing wrong with keeping Vanguard too, just a little bit more paperwork.

      Some take diversification far too serious. It doesn't matter if your ETFs overlap. Just don't go picking your own stocks and you'll be fine.

  • arkie0 on 10/09/2025 - 13:34
    +4

    https://passiveinvestingaustralia.com/vdhg-or-roll-your-own/

    Pretty much explains the pros and cons of each approach. Once you decide which approach just add into the one you pick.

    For such a small amount I'd take the CG (make sure you hold for over 12 months for discount) hit just so I don't have to deal with the dividends tracking from multiple efts

  • Daniel Plainview on 11/09/2025 - 13:22
    -1

    Never cease to be amazed that folks buy stuff BEFORE they have even a basic understanding of what they're buying.

    There is no 'need' to do anything - you bought them presumably with a plan? So unless that has changed why do you 'need' (and I use this in it's literal sense) your holdings?

    Yes, there's a lot of crossover but it's not the end of the world to focus on either a VDHG or VAS+VGS….or even doubling down and going as you have already VDHG+VAS+VGS - which this might seem dumb, it's just overweighting in the area those holdings are exposed to and not as daft as it seems.

    Now all this said you likely should have simply bought DHHF instead of any of them - as you're clearly very wet behind the ears with investing knowledge (as others have said go up your info at passiveinvesting.com) but VDHG is a fun of funds and is not very efficient in the tax front - thus does fall behind DHHF on this front - it also has a 10% exposure to fixed interest and a hedged component - all which young investors should avoid (regarded as best practice). And I don't even hold VDHG, so you should know all this being you moved on it to buy. :-) Measure twice, cut once.

  • Universal Constant on 11/09/2025 - 17:35
    +2

    Just a heads up with ETF's when you sell. You will need to adjust the cost base for every bundle purchased and do it every year. This adjustment is in the yearly tax statement, called something like "AMIT cost base adjustment". If you have multiple buys and sells the calculations need to be done on a ratio. If you keep them for a long time it can get complicated.

    • fredblogs on 11/09/2025 - 21:10

      Sounds rough if you've lost/deleted older statements…

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