Vanguard’s new low-fee super fund: 3 things to consider before switching

Posted: 16 November 2022 4:26 pm

News

Investment giant Vanguard has launched a superannuation fund in Australia with low fees and based on index investments.

Global investment manager Vanguard, well known for its range of exchange-traded funds (ETFs), has officially launched a new superannuation fund in Australia.

Vanguard is known for its low-cost index funds that allow retail investors to access hundreds of local and global stocks with just one trade.

If you're keen to switch to the new Vanguard Super product, here are 3 things to know about the fund first.

1. Vanguard Super has a range of investment options, based on index funds

Vanguard Super offers a range of diversified investment options to choose from as well as a lifecycle product and individual asset class options.

The default MySuper product is a lifecycle fund that invests your super into a mix of asset classes based on your age.

When you're under 50, you'll be mainly invested in growth assets with a small amount of defensive assets too.

As you approach 50 your asset allocation will continue to change each year so you're invested in fewer high-risk growth assets as you get closer to retirement. This is done automatically for you and there are no switching or adjusting fees for this.

As well as the lifecycle product Vanguard Super also offers high growth, ethically conscious growth, growth, balanced and conservative options. All Vanguard's super options are based on index investing, with a mix of different ETFs and index funds.

2. Vanguard Super fees are very low

Because Vanguard Super's investments are based on index funds, the fees are very low.

Investing via index funds is low cost as it's more passively managed, compared to a fund that has investment managers actively hand-picking each stock.

Vanguard Super lifecycle fees are 0.58% p.a., which adds up to an annual fee of $290 based on a $50,000 balance.

In comparison, AustralianSuper's default balanced fund has fees of $447 based on a $50,000 balance and Hostplus charges $648.

3. The performance returns aren't available just yet

Vanguard Super is a brand new super fund, so there are no past performance figures available yet. However, Vanguard ETFs have tended to perform well over the long term.

If you haven't checked your super in a while, now's a great time to compare super funds and make sure you're in a fund with low fees and strong returns.

1 - 16 of 446

Name	Last 1 year performance (p.a.)	Last 3 year performance (p.a.)	Last 5 year performance (p.a.)	Last 10 year performance (p.a.)	Fees on $50k balance (p.a.)
Australian Ethical Super Australian Shares Green CompanyEthicalHigher risk	Last 1 year performance (p.a.) +11.04%	Last 3 year performance (p.a.) +2.22%	Last 5 year performance (p.a.) +8.9%	Last 10 year performance (p.a.) +10.38%	Fees on $50k balance (p.a.) $778	Go to site More Info Compare
Aware Super High Growth Industry fundHigher risk	Last 1 year performance (p.a.) +10.29%	Last 3 year performance (p.a.) +6.3%	Last 5 year performance (p.a.) +8.08%	Last 10 year performance (p.a.) +8.71%	Fees on $50k balance (p.a.) $497	Go to site More Info Compare
Australian Retirement Trust - High Growth Industry fundHigher risk	Last 1 year performance (p.a.) +10.61%	Last 3 year performance (p.a.) +8.35%	Last 5 year performance (p.a.) +8.88%	Last 10 year performance (p.a.) +9.22%	Fees on $50k balance (p.a.) $542	Go to site More Info Compare
Virgin Money Super - LifeStage Tracker LifestageHigher risk	Last 1 year performance (p.a.) +11.76%	Last 3 year performance (p.a.) +6.48%	Last 5 year performance (p.a.) +7.5%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $346	Go to site More Info Compare
Australian Ethical Super Growth Green CompanyEthicalHigher risk	Last 1 year performance (p.a.) +7.25%	Last 3 year performance (p.a.) +4.73%	Last 5 year performance (p.a.) +6.55%	Last 10 year performance (p.a.) +7.68%	Fees on $50k balance (p.a.) $733	Go to site More Info Compare
Equip MySuper Industry fund	Last 1 year performance (p.a.) +8.76%	Last 3 year performance (p.a.) +5.38%	Last 5 year performance (p.a.) +6.26%	Last 10 year performance (p.a.) +7.16%	Fees on $50k balance (p.a.) $467	Go to site Compare
Australian Retirement Trust - International Shares Index (unhedged) Finder AwardIndustry fundIndexed investmentHigher risk	Last 1 year performance (p.a.) +18.15%	Last 3 year performance (p.a.) +10.32%	Last 5 year performance (p.a.) +10.9%	Last 10 year performance (p.a.) +11.96%	Fees on $50k balance (p.a.) $187	Go to site More Info Compare
Australian Ethical Super Balanced Green CompanyEthical	Last 1 year performance (p.a.) +6.19%	Last 3 year performance (p.a.) +3.55%	Last 5 year performance (p.a.) +5.87%	Last 10 year performance (p.a.) +7%	Fees on $50k balance (p.a.) $603	Go to site More Info Compare
Spaceship - GrowthX Higher risk	Last 1 year performance (p.a.) +18.87%	Last 3 year performance (p.a.) +4.85%	Last 5 year performance (p.a.) +9.03%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $503	Go to site More Info Compare
Spaceship - Global Index Indexed investmentHigher risk	Last 1 year performance (p.a.) +16.61%	Last 3 year performance (p.a.) +9.08%	Last 5 year performance (p.a.) +9.33%	Last 10 year performance (p.a.) N/A		Go to site More Info Compare
Australian Ethical Super International Shares Green CompanyEthicalHigher risk	Last 1 year performance (p.a.) +16.7%	Last 3 year performance (p.a.) +8.37%	Last 5 year performance (p.a.) +9.42%	Last 10 year performance (p.a.) +9.76%	Fees on $50k balance (p.a.) $643	Go to site More Info Compare
Australian Retirement Trust - High Growth Pension Industry fundLifestage	Last 1 year performance (p.a.) +8.72%	Last 3 year performance (p.a.) +6.71%	Last 5 year performance (p.a.) +7.27%	Last 10 year performance (p.a.) +8.01%	Fees on $50k balance (p.a.) $507	Go to site More Info Compare
Aware Super Balanced Industry fund	Last 1 year performance (p.a.) +8.71%	Last 3 year performance (p.a.) +5.29%	Last 5 year performance (p.a.) +6.67%	Last 10 year performance (p.a.) +7.42%	Fees on $50k balance (p.a.) $462	Go to site More Info Compare
Australian Retirement Trust - Conservative Balanced Industry fund	Last 1 year performance (p.a.) +8.83%	Last 3 year performance (p.a.) +6.78%	Last 5 year performance (p.a.) +7.34%	Last 10 year performance (p.a.) +8.05%	Fees on $50k balance (p.a.) $507	Go to site More Info Compare
Virgin Money Super Indexed Australian Shares Indexed investmentHigher risk	Last 1 year performance (p.a.) +8.96%	Last 3 year performance (p.a.) +7.73%	Last 5 year performance (p.a.) +8.25%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $388	Go to site More Info Compare
Virgin Money Super Indexed Overseas Shares Indexed investmentHigher risk	Last 1 year performance (p.a.) +19.95%	Last 3 year performance (p.a.) +11.63%	Last 5 year performance (p.a.) +11.71%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $383	Go to site More Info Compare

Showing 16 of 25 results

Unless indicated otherwise, the information in the table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445.

*Past performance data and fee data is for the period ending Apr 2024

Ask a question

Click here to cancel reply.

Display name

Your email (will not be published)

Your question

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.