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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.

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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.)
Virgin Money Super - LifeStage Tracker Lifestage	Last 1 year performance (p.a.) +14.38%	Last 3 year performance (p.a.) +5.84%	Last 5 year performance (p.a.) +8%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $363	Go to site More Info Compare	Your fund's asset allocations adjust automatically as you age, offering you more growth opportunity when you're younger and lower-risk investments as you approach retirement.
Aware Super Future Saver - MySuper Lifecycle High Growth Industry fundLifestageHigher risk	Last 1 year performance (p.a.) +11.92%	Last 3 year performance (p.a.) +5.03%	Last 5 year performance (p.a.) +8.56%	Last 10 year performance (p.a.) +8.85%	Fees on $50k balance (p.a.) $497	Go to site More Info Compare
Vanguard Super SaveSmart - High Growth Higher risk	Last 1 year performance (p.a.) +14.46%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $270	Go to site More Info Compare
Virgin Money Super - LifeStage Tracker Lifestage	Last 1 year performance (p.a.) +14.38%	Last 3 year performance (p.a.) +5.84%	Last 5 year performance (p.a.) +8%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $363	Go to site More Info Compare
Australian Retirement Trust - High Growth Industry fundHigher risk	Last 1 year performance (p.a.) +11.81%	Last 3 year performance (p.a.) +7.17%	Last 5 year performance (p.a.) +9.19%	Last 10 year performance (p.a.) +9.28%	Fees on $50k balance (p.a.) $517	Go to site More Info Compare
Spaceship - GrowthX Higher risk	Last 1 year performance (p.a.) +16.94%	Last 3 year performance (p.a.) +4.59%	Last 5 year performance (p.a.) +10.51%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $711	Go to site More Info Compare
Hostplus Indexed Balanced Industry fund	Last 1 year performance (p.a.) +13.75%	Last 3 year performance (p.a.) +5.75%	Last 5 year performance (p.a.) +7.66%	Last 10 year performance (p.a.) +7.77%	Fees on $50k balance (p.a.) $153	Go to site More Info Compare
AMP Super MySuper Lifestages 1970s Lifestage	Last 1 year performance (p.a.) +12.35%	Last 3 year performance (p.a.) +5.17%	Last 5 year performance (p.a.) +7.22%	Last 10 year performance (p.a.) +7.6%	Fees on $50k balance (p.a.) $506	Go to site More Info Compare
Australian Ethical Super International Shares Green CompanyEthicalHigher risk	Last 1 year performance (p.a.) +16.54%	Last 3 year performance (p.a.) +6.9%	Last 5 year performance (p.a.) +10.56%	Last 10 year performance (p.a.) +10.12%	Fees on $50k balance (p.a.) $643	Go to site More Info Compare
Superhero Super - High Growth Higher risk	Last 1 year performance (p.a.) +17.43%	Last 3 year performance (p.a.) +6.36%	Last 5 year performance (p.a.) +8.73%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $397	Go to site More Info Compare
CFS FC MySuper - Lifestage 1985-89 LifestageHigher risk	Last 1 year performance (p.a.) +15.55%	Last 3 year performance (p.a.) +6.02%	Last 5 year performance (p.a.) +7.66%	Last 10 year performance (p.a.) +7.69%	Fees on $50k balance (p.a.) $375	Go to site More Info Compare
UniSuper - Sustainable High Growth Finder AwardIndustry fundEthicalHigher risk	Last 1 year performance (p.a.) +16.62%	Last 3 year performance (p.a.) +4.29%	Last 5 year performance (p.a.) +9.2%	Last 10 year performance (p.a.) +9.94%	Fees on $50k balance (p.a.) $321	Go to site More Info Compare
HESTA Balanced Growth Industry fund	Last 1 year performance (p.a.) +9.94%	Last 3 year performance (p.a.) +5.17%	Last 5 year performance (p.a.) +7.16%	Last 10 year performance (p.a.) +7.59%	Fees on $50k balance (p.a.) $472	Go to site More Info Compare
Vanguard Super SaveSmart - International Shares Higher risk	Last 1 year performance (p.a.) +17.24%	Last 3 year performance (p.a.) N/A	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $280	Go to site More Info Compare
CFS FC MySuper - Lifestage 1975-79 Lifestage	Last 1 year performance (p.a.) +15.1%	Last 3 year performance (p.a.) +5.74%	Last 5 year performance (p.a.) +7.42%	Last 10 year performance (p.a.) +7.58%	Fees on $50k balance (p.a.) $380	Go to site More Info Compare
Australian Retirement Trust - International Shares Index (unhedged) Finder AwardIndustry fundIndexed investmentHigher risk	Last 1 year performance (p.a.) +16.03%	Last 3 year performance (p.a.) +8.13%	Last 5 year performance (p.a.) +11.51%	Last 10 year performance (p.a.) +12.22%	Fees on $50k balance (p.a.) $192	Go to site More Info Compare

Showing 16 of 102 results

The information in this 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. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

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

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

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

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

2. Vanguard Super fees are very low

3. The performance returns aren't available just yet

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