ASX-listed · AUD-settled · FIF-eligible (above NZ$50K) · franking credits attached
Vanguard VAS.AX Vanguard Australian Shares Index ETF
Tracks the S&P/ASX 300 — broad Australian equity market exposure. High dividend yield with franking credits attached (not refundable to NZ residents).
Updated Reviewed quarterly
About this fund
What is VAS.AX?
VAS.AX is the ASX ticker for Vanguard Australian Shares Index ETF, issued by Vanguard (Australian-domiciled). Tracks the S&P/ASX 300 — broad Australian equity market exposure. High dividend yield with franking credits attached (not refundable to NZ residents). TER is 0.07% per year, with a trailing 12-month distribution yield of approximately 3.8%. Distributions paid quarterly in AUD.
How to buy
Where can I buy VAS.AX from New Zealand?
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Tiger Brokers NZ-licensed; covers ASX + NZX + US + HKEX.
Interactive Brokers Lowest published FX margin for ASX trades; tiered commissions.
Jarden Direct CHESS-sponsored ASX holdings; in your own name on the ASX register.
ASB Securities CHESS-sponsored ASX; integrated with ASB banking.
BNZ Direct Broking CHESS-sponsored ASX; bank-anchored brokerage.
Hatch is not on this list — Hatch supports US-listed ETFs only, not ASX. See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is VAS.AX taxed for NZ investors?
ASX-listed ETFs are non-NZ-domiciled, so they sit in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, you pay tax on dividends only. Above it, most NZ investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate.
Distributions are paid in AUD. Australian withholding tax applies under the NZ-Australia tax treaty (typically 15% with a TFN supplied to your broker). The 15% can be claimed as a foreign tax credit on your IR3, similar to US dividends.
Franking credits — important for NZ residents
VAS.AX distributions carry Australian franking credits (the AU equivalent of NZ imputation credits). Franking credits are NOT refundable to non-Australian residents. NZ residents can use them to offset Australian tax payable on the dividend, but cannot claim them as a refund. The economic value of the dividend is therefore lower for NZ residents than for Australian residents.
Currency exposure: VAS.AX settles in AUD. NZ residents face NZD/AUD currency variance when valuing positions in NZD, and (for AU-domiciled funds investing in non-AUD assets) further AUD-vs-underlying-currency variance inside the fund.
ASX-listed ETFs do NOT carry the NZ PIE-fund tax advantages — that structure is only available on NZX-listed Smartshares + Kernel funds. See PIE vs FIF for the comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about VAS.AX
What is VAS.AX? ⌄
VAS.AX is the Vanguard Australian Shares Index ETF — Australian-domiciled, tracks the S&P/ASX 300 Index, holding ~300 large- and mid-cap Australian companies (BHP, Commonwealth Bank, CSL, Westpac, Wesfarmers, etc). TER is 0.07%, distributions paid quarterly. Yield ~3.8% (high — Australian dividends are typically higher-yielding than US, and franking credits are attached).
Why is VAS.AX yield so high? ⌄
Australian companies historically pay higher dividend yields than US companies — driven by Australia's franking-credit system (which incentivises companies to pay franked dividends rather than retain earnings). Major banks (CBA, Westpac, ANZ, NAB) and miners (BHP, Rio Tinto) are large positions in VAS.AX and pay ~5-7% yields. The high headline yield needs adjusting for franking-credit treatment when assessing the actual cash yield to NZ residents.
Are franking credits useful to NZ residents holding VAS.AX? ⌄
Partially. Franking credits attached to VAS.AX distributions can offset Australian tax payable on the dividend (under the NZ-AU tax treaty). They are NOT refundable to NZ residents — so if your AU tax liability on the dividend is zero (e.g. you have other AU tax credits), the franking credit is wasted. Net economic dividend value is typically lower for NZ residents than for Australian residents who can refund franking credits. The IR3 reporting includes the franking credit but doesn't convert it to NZD value.
VAS.AX vs IOZ or A200 — alternatives? ⌄
IOZ (iShares Core S&P/ASX 200, 0.05% TER) and A200 (BetaShares Australia 200, 0.04% TER) are competing ASX 200 / 300 trackers. VAS.AX has 0.07% TER and tracks ASX 300 (slightly broader than ASX 200). All three deliver effectively identical Australian-equity exposure; choice is mostly down to broker availability + AUM preference + the small TER differences.
Related ETFs and resources
VGS.AX — Vanguard MSCI International (sibling)
The "international half" of a VAS + VGS portfolio.
NZ-listed equivalent (Smartshares NZ Top 50)
NZX-listed FNZ for NZ-equity exposure (PIE-tax structure, no FIF).
IVV.AX — S&P 500 (ASX-listed)
US-equity counterpart on the ASX.
PIE vs FIF
Why NZ-domiciled funds avoid the franking-credit complications.