Vanguard Diversified Income ETF

Vanguard Diversified Income ETF holds 2,243 securities.

Its largest country exposure is Australia at 47.0%, based on holdings as at 31 July 2026.

VDIF shares the most holdings with Vanguard Diversified Growth Index ETF (VDGR) (53% overlap), Vanguard Diversified High Growth Index ETF (VDHG) (50% overlap) and Vanguard Diversified All Growth Index ETF (VDAL) (47% overlap). Overlap is the share of the portfolio the two funds hold in common, looking through to the underlying securities.

At 53%, owning both VDIF and VDGR would mostly double up on the same investments rather than spread your money further. Of these, VDGR has the lowest fee, at 0.27% a year against 0.32% for VDIF.

Vanguard Diversified Income ETF is passively managed: it follows an index and holds what that index holds, rather than relying on a manager's stock picks. Its index uses a dividend approach, so it is sometimes called "smart beta".

Among multi-asset funds, active funds charge a median 0.39% a year and index funds 0.27%.

VDIF charges a management fee of 0.32% a year, about $32 for every $10,000 invested. That is cheaper than 65% of the 471 ASX ETFs we track, where the median fee is 0.44%. Among multi-asset funds, the median is 0.27%.

Lower-cost funds with a similar focus include Betashares Diversified Credit Income ETF (DCRD) at 0.22%.

The fee is taken from the fund's assets and is already reflected in its returns. You'll also pay brokerage when you buy or sell, and the bid-ask spread, which has averaged 0.08% for VDIF.

Its focus is income. It favours investments that pay higher, regular distributions. Over the past year it paid out 5.6% of its price, across 4 payments.

As at 31 July 2026, VDIF's ten largest holdings are Vanguard Australian Shares High Yield ETF (22.1%), Vanguard International Shares High Yield ETF (19.8%), Vanguard International Credit Securities Index Hedged ETF (9.9%), Vanguard International Credit Securities Index Fund Hedged (7.0%), Vanguard Australian Shares High Yield Fund (5.7%), Vanguard International Fixed Interest Index Fund Hedged (5.6%), Vanguard International Fixed Interest Index Hedged ETF (5.3%), Vanguard Australian Corporate Fixed Interest Index Fund (5.1%), Vanguard International Property Securities Index Fund Hedged (4.9%) and Vanguard Australian Government Bond Index Fund (3.6%). Together they make up 89.0% of the fund. Some holdings are other ETFs, which we look through to their own holdings when measuring exposure and overlap.

Rather than simply weighting companies by market size, its index favours companies that pay higher dividends.

Based on its category, Vanguard Diversified Income ETF aims mainly to pay a regular income, with capital growth secondary.

To 23 Oct 2026, with distributions reinvested, it returned 5.6% over 1 year (median 3.0%; ranked 1 of 13). The medians and rankings compare it with multi-asset funds. Since listing in 2025 it has returned 9.7% a year.

Tracking difference is the gap between a fund's return and its index's return. We don't hold index returns, so we can't measure it for VDIF; the issuer reports it in the monthly fact sheet. As a guide, a well-run index fund trails its index by about its fee, here 0.32% a year, and a much bigger gap is a warning sign.

Past performance is not a reliable indicator of future performance.