VAS vs A200: Which Australian Shares ETF Is Better? (2026)

VAS and A200 are the two most popular Australian shares ETFs on the ASX, and the most common question from Australian investors building a domestic equities allocation is which one to choose. A200 charges 0.04% a year (BetaShares) and VAS 0.07% (Vanguard), among the lowest fees for broad Australian shares. The other differences are subtle but worth understanding.

Use the ETF Returns Calculator to compare VAS and A200 over your investment horizon.

Quick answer: VAS tracks the S&P/ASX 300 (~300 companies) while A200 tracks the Solactive Australia 200 (200 companies). A200 is cheaper at 0.04% a year against 0.07%, or $30 a year less on $100,000. Performance is near-identical. VAS has more holdings and slightly more small- and mid-cap exposure. For most investors, either is fine — choose based on your broker's brokerage structure or a coin flip.

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Quick Comparison

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The Index Difference: ASX 300 vs ASX 200

VAS tracks the S&P/ASX 300 Index — Australia's 300 largest listed companies by market capitalisation.

A200 tracks the Solactive Australia 200 Index — Australia's 200 largest listed companies by market capitalisation (using a different index provider than the official S&P/ASX 200).

The practical difference is minimal. The ASX 300 and ASX 200 are dominated by the same companies — the big four banks (CBA, NAB, ANZ, WBC), BHP, Rio Tinto, Fortescue, CSL, Wesfarmers, Woodside, Macquarie. These companies make up 60%+ of both indices.

The extra 100 companies in VAS are small-cap stocks that collectively represent approximately 3–4% of the total market cap. Their performance has minimal impact on VAS's overall returns.

Sector exposures are nearly identical:

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Performance: Near-Identical Over Any Meaningful Period

5-year total return (to June 2026):

• VAS: approximately 8.4% p.a.
• A200: approximately 8.5% p.a.

The difference is within the margin of measurement error. Over 10 years, the difference will be similarly negligible. Both ETFs are designed to track their respective indices mechanically — performance differences come down to tracking error, not skill.

A200 has historically had slightly lower tracking error relative to its index — partially because the Solactive index is simpler to replicate and has lower rebalancing costs than the S&P/ASX 300.

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Distributions and Franking Credits

Both ETFs distribute quarterly. Both generate significant franking credits because Australian companies (particularly the banks) are heavily franked.

Why this matters: At marginal rates below 30%, franking credits produce ATO refunds. At higher marginal rates, they reduce the effective tax rate on distributions. The high franking of Australian shares ETFs is one of their key advantages over international ETFs for Australian investors.

VAS distribution breakdown (approximate):

• Franked dividends: ~60% of distribution
• Unfranked dividends: ~15%
• Capital gains: ~10%
• Other income: ~15%

A200 distribution breakdown: Similar to VAS — both track essentially the same underlying companies.

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AUM: VAS Is More Than Three Times Larger

VAS at ~$20.5B AUM is one of the largest ETFs in Australia and the largest single-country equity ETF. A200 at ~$6.5B is substantial but considerably smaller.

For retail investors, this difference is irrelevant — both have sufficient liquidity for any retail transaction. The bid-ask spread on both is typically 1–2 cents per unit.

VAS's larger AUM is partly a function of its much longer track record (2009 vs 2018). Many of the investors who started in VAS in 2009–2015 simply stayed there.

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Which Should You Choose?

The honest answer: For a new investor, it does not matter enough to agonise over. Choose A200 if you prefer slightly lower tracking error and BetaShares as a provider. Choose VAS if you prefer Vanguard's brand and longer track record.

Practical tiebreaker: Some brokers charge lower brokerage for one provider's ETFs. Check your broker's fee schedule — if your broker has a preferred ETF partner (e.g. CommSec offers Vanguard ETFs commission-free in certain circumstances), use that ETF.

If you hold one already: Do not switch. The CGT event from selling to switch is not justified by the immaterial performance difference.

The IOZ alternative: There is a third option — IOZ (iShares Core S&P/ASX 200 ETF) from BlackRock/iShares, at 0.05% a year (iShares). It tracks the official S&P/ASX 200 index. Performance and distribution are nearly identical to both VAS and A200. Choose any of the three.

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Frequently Asked Questions

Is VAS or A200 better?

For most investors, there is no meaningful difference — they hold Australia's largest companies and produce near-identical returns. A200 is 0.03% a year cheaper; VAS has a longer track record (since 2009) and larger fund size. Either is an excellent choice.

Does VAS track the ASX 200 or ASX 300?

VAS tracks the S&P/ASX 300 Index — Australia's 300 largest companies. A200 tracks the Solactive Australia 200 Index — the 200 largest. The extra 100 companies in VAS represent approximately 3–4% of the total market cap, making the practical difference minimal.

Do VAS and A200 pay franking credits?

Yes — both ETFs hold primarily Australian companies that pay franked dividends. Approximately 70–80% of distributions from both VAS and A200 come with franking credits attached, significantly reducing the effective tax rate on distributions compared to unfranked international ETFs.

Can I hold both VAS and A200?

You can, but there is no benefit — both hold essentially the same companies. Holding both doubles your brokerage without adding diversification. Choose one.

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Related calculators and guides

• ETF Returns Calculator
• How Are ETF Distributions Taxed in Australia?
• Capital Gains Tax Calculator
• ETF investing for beginners: how to buy your first ETF
• DHHF vs VDHG Tax Efficiency
• Best ETF Brokers Australia 2026
• Dollar Cost Averaging in Australia
• Best ETFs in Australia

This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.