Australian (ASX) Stock Market Forum

Vanguard ETF Questions & Dividends

Jul 7, 2019
Hi All,

I recently have purchased a variety of Vanguard ETF's via the IG share trading platform. I have a few questions that I hope you can help me on!

1) I want to diversify and limit my exposure to any one ETF so will look to hold a wide variety of different Vanguard products - is this sensible vs massively investing in 3-4?

2) With respect to the above - is it more costly via IG to have the multiple vanguard products?

3) Dividends paid out - does anyone know if this goes straight into the cash account on IG?



The voice of reason
Aug 5, 2011
I can't address IG specifically, but I can speak to ETFs, and how brokers handle things in general. If you wanted to, you could buy 1 single, broad-based, low-cost index fund. There are "total market" and "total world" type ETFs. That's a viable approach.

Taking it to the next level, buying multiple ETFs can be about diversifying, but if you're in a broad fund like the ones I mentioned above, it can be about overweighting in areas you want more of. Just check what's in the fund. You will find a lot of ETFs overlap. In which case you're adding needless complexity by buying more ETFs and getting no benefit.

When you buy ETFs, you pay the same brokerage as shares. The more ETFs you buy, the more individual brokerages you'll pay.

Each ETF will charge a MER (management fee), so know what they are. They are percentage based, so you don't pay more if you spread across more funds (if the MERs are the same).

Dividends are paid into an account you nominate with your broker. That could be your brokerage account, or an external bank account.

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