Exploring Vanguard’s New VDAL Fund: How Does It Stack Up Against BetaShares’ DHHF?

G’day, finance fans! If you’re keeping tabs on the Aussie investment scene, you’ve likely spotted Vanguard’s latest offering: VDAL. Launched in 2025, it’s shaking up the all-growth ETF space, where BetaShares’ DHHF has been a staple. Both funds promise diversified, low-cost exposure to global shares, but how do they stack up? Let’s dive into VDAL, compare it to DHHF on costs, performance, and asset allocation, and figure out which might suit your portfolio best.

What is VDAL?

VDAL, or the Vanguard Diversified All Growth Index ETF, is Vanguard’s newest ASX-listed ETF, hitting the market in early 2025. It’s a one-ticket solution for growth-focused investors, with a 100% allocation to equities—no bonds or cash here! VDAL combines Vanguard’s index funds to deliver a mix of Australian and international shares, aiming for long-term capital growth. It’s perfect for those who want broad market exposure without the fuss of managing multiple investments.

Get the full rundown on Vanguard’s site: Vanguard VDAL.

DHHF: The BetaShares All-Star

Then there’s BetaShares Diversified All Growth ETF (DHHF), a fan favourite since its shift to 100% growth assets in December 2020. DHHF is an ETF of ETFs, blending funds like A200 (Australian shares) and VTS (US shares) to cover over 8,000 securities across 60+ global exchanges. It’s built for investors who want a hands-off, all-equity portfolio with high growth potential.

Check it out here: BetaShares DHHF.

Costs: Counting the Dollars

Fees matter—they nibble at your returns over time. Here’s the breakdown:

• VDAL: Vanguard sets VDAL’s management fee at 0.27% per annum—that’s $27 a year for every $10,000 invested. It’s a tad higher than some peers, but there are no indirect costs or hidden extras, keeping it clean and predictable.

• DHHF: BetaShares wins on the headline fee with 0.19% per annum ($19 per $10,000). But there’s a catch: its US-domiciled ETFs (like SPDW and SPEM) introduce a “tax drag” from unclaimable foreign dividend taxes, estimated at ~0.09%. This bumps the effective cost to around 0.28% per annum, slightly above VDAL.

Winner? DHHF takes the crown for the lowest sticker price, but VDAL’s effective cost is a whisker cheaper when tax drag is considered. It’s a tight race—your choice might hinge on how much that 0.01% matters over decades.

Performance: Who’s Ahead?

Returns are the goal, but past performance isn’t a promise—still, let’s see what’s what.

• VDAL: Fresh out of the gate in 2025, VDAL has no long-term data yet. Its 100% equity focus ties it to market swings, and its performance will mirror its underlying indices (Australian and global shares). For a hint, Vanguard’s VDHG (90% growth, 10% bonds) has averaged ~7.4% p.a. since 2017—VDAL could aim higher without bonds, though with more volatility.

• DHHF: Since December 2020, DHHF’s clocked an average of 11.09% p.a. through late 2024. In the year to September 2024, it smashed out 20.45% (Morningstar data), riding a strong equity wave. That’s impressive, but its all-growth stance means it’ll dip harder in downturns.

Winner? DHHF’s got the edge with real results, while VDAL’s still unproven. Vanguard’s track record suggests VDAL will hold its own over time, but for now, DHHF’s ahead.

Asset Allocation: The Mix Matters

Both funds are all-growth, but their blends differ.

• VDAL: Vanguard’s approach is straightforward:

  • Australian Shares: ~36% (via VAS, tracking ASX 300)

  • International Shares: ~54% (global large caps, small caps, emerging markets)

  • No defensive assets—just equities. It’s got a global tilt with a solid Aussie core.

• DHHF: BetaShares diversifies across four ETFs:

  • Australian Shares: 37% (A200—top 200 ASX stocks)

  • US Shares: ~37% (VTS)

  • Developed Markets ex-US: ~18% (SPDW)

  • Emerging Markets: ~7% (SPEM)

  • That’s ~63% international, spanning 8,000+ securities.

Winner? Tie. VDAL’s simpler mix suits those who like Vanguard’s style, while DHHF’s detailed breakdown offers a bit more emerging market exposure.

The Verdict: VDAL or DHHF?

So, what’s the play? VDAL brings Vanguard’s reliability, a slightly lower effective cost (post-tax drag), and a fresh option for all-growth fans. It’s great if you trust Vanguard’s pedigree and want a clean, no-frills ETF. DHHF, with its lower headline fee, proven performance, and broader global reach, appeals to those who value a track record and don’t mind a small tax quirk.

Both shine for long-term investors (7+ years) who can handle market rollercoasters. If you’re after the cheapest upfront fee and a solid history, DHHF’s your pick. If you prefer Vanguard’s simplicity and a tiny cost edge overall, VDAL’s worth a punt.

What’s your call—VDAL, DHHF, or a bit of both? Let me know below, and happy investing!

Disclaimer: This is general advice only and doesn’t take into account your personal circumstances, goals, or risk tolerance. Investing carries risks, and what’s right for one person might not suit another. If you’ve got questions or need tailored guidance, chat with a licensed financial adviser to make sure you’re on the right track.