The Vanguard Australian Shares High Yield ETF seeks to track the return of the FTSE Australia High Dividend Yield Index 
before taking into account fees, expenses, and tax. 

Benefits of investing with Vanguard

Competitive long-term performance 

Vanguard's investment approach provides investors with an efficient way to capture long-term market performance.

Diversification

The Fund invests in a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities.

Low cost investing 

The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund.

Risk level

High

Investor suitability

Buy and hold investors seeking long-term capital growth, some tax-effective income, and with a higher tolerance for the risks associated with share market volatility.

Buy and hold investors seeking long-term capital growth, some tax-effective   n  income, and with a higher tolerance for the risks associated with share market 
volatility

About the Fund

The ETF provides low-cost, broadly diversified exposure to Australian companies and property trusts listed on the Australian Securities Exchange. It also offers potential long-term capital growth along with dividend income and franking credits.

What is an ETF?

An ETF is an Exchange Traded Fund, which is quoted for trading on the AQUA market of the ASX (in this case, it is the CDIs that are quoted for trading on the AQUA market of the ASX). Generally, these exchange traded funds comprise broadly diversified investment portfolios of either shares, bonds or real estate securities and are constructed using an indexed investment methodology.

ETFs seek to combine the best features of index managed funds and listed shares in one investment. Vanguard ETFs come with the benefits of low cost, broad diversification, transparency and tax efficiency due to low turnover of the underlying securities. However, unlike traditional index funds which are priced only once per day, ETF securities trade on a stock exchange so they can be bought and sold at any time during the trading day at prevailing market prices. ETFs carry certain risks (refer to the section 2. Risks' in the PDS for further details).

Who is Vanguard?

Vanguard Investments Australia Ltd (Vanguard) is a wholly owned subsidiary of The Vanguard Group, Inc. With more than AUD$6.9 trillion in assets under management as of 31 December 2018, including over AUD$1.2 trillion in ETFs; The Vanguard Group Inc is one of the world's largest global investment management companies. In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 20 years.

How we invest yourmoney

The Vanguard Australian Shares Index ETFseeks to track the return of the S&P/ASX 300 Index before taking intoaccount fees, expenses, and tax. The S&P/ASX 300 Index was not created by, andis not managed by, a related body corporate of Vanguard.

The Fund meets its investment objective byholding all of the securities in the S&P/ASX 300 Index (at most times)allowing for individual security weightings to vary marginally from the Indexfrom time to time. The Fund may invest in securities that have been removedfrom or are expected to be included in the Index.

Index information

The S&P/ASX Australian Indices arereal-time, market capitalisation-weighted indices that include the largest andmost liquid stocks in the Australian market.

The S&P/ASX 300 Index is highly liquid,float-adjusted and includes up to 300 of Australia's largest securities byfloat-adjusted market capitalisation. The S&P/ASX 300 index includes thelarge cap, mid cap and small cap components of the S&P/ASX index family.The index covers approximately 81% of Australian equity market capitalisation.

The index constituents are drawn from theuniverse of ordinary and preferred equity stocks listed on the ASX. The indexonly includes securities that are considered to be institutionally investable,and market capitalisation is a key criterion for stock selection. The marketcapitalisation criterion for stock inclusion is based on the daily averagemarket capitalisation of a security over the last six months. Only stocks thatare regularly traded are eligible for inclusion in the index. A stock'sliquidity is measured relative to its peers.

Index rebalancing occurs semi-annually inMarch and September.

For information regarding the benchmarkindex values, returns, and methodology please refer to Standard & Poor's website https://au.spindices.com