VEU

 VEU

https://www.vanguard.com.au/adviser/invest/etf?portId=0991

......................

The Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU) is an exchange-traded fund traded on the Australian Securities Exchange that tracks international shares across developed and emerging markets globally, excluding the United States. a very low management fee of 0.04% per year. [1, 2, 3, 4]

Start : $44.60 AUD in 2009

46.31 may 2011

41.89 may 2012

50.75 july 2013

56.91 jan 2015

63.96 nov 2015

59.60 oct 2016

70.11 may 2020

85.99 july 2023

90.33 jun 2024

98.93 mar 2025

Today 121.40 AUD in Aug 2026

3 fold increase in 17 years.....

Key Features of VEU

Geographic Focus: Covers thousands of companies in major non-US regions like Japan, the UK, China, Canada, and Europe.
Top Holdings: Includes large global companies such as Taiwan Semiconductor Manufacturing Co, ASML Holding, Novo Nordisk, Toyota Motor, and Nestlé.
Currency Risk: Unhedged against the Australian dollar, meaning your returns jump or drop based on foreign currency shifts.
Distributions: Pays quarterly income distributions to investors. [1, 2, 3, 4, 5, 6]

Why Investors Use VEU

Fix US Overexposure: Many standard global funds are 60% to 70% invested in US tech and mega-caps; VEU cuts out the US entirely to balance a portfolio.
Low Cost: At 0.04% p.a., it is one of the cheapest ways to access international markets. [1, 2, 3]

Important Structure Nuance

VEU is a CHESS Depositary Interest (CDI) over a US-domiciled Vanguard fund.
Australian investors may need to fill out a W-8BEN form for optimal tax handling on foreign dividends, and the underlying structure can experience slight foreign withholding tax drag before payouts reach you. [1]

................................

ARGO vs VEU buffett style 2026 sept

An analysis of Argo Investments (ASX:ARG) and Vanguard All-World ex-US Shares ETF (ASX:VEU) shows they represent fundamentally distinct asset allocations. [1, 2]

A direct mathematical and structural comparison is outlined below, followed by an evaluation using Warren Buffett's foundational value-investing principles.

Key Metrics Summary

Metric	ASX:ARG (Australian Blue Chips)	ASX:VEU (Global Equities ex-US)
Primary Holdings	BHP, CBA, Rio Tinto, Macquarie	TSMC, Samsung, ASML, Tencent
10-Year Total Return	~9.0% p.a.	~10.28% p.a.
P/E Ratio	26.5x (Elevated due to localized financial sector data)	16.6x (Deep fundamental value)
Dividend Yield	~4.3% cash (~6.0% grossed up with 100% franking)	~2.5% cash (0% franking)
10-Year Dividend Growth	~2.7% p.a. (Highly smoothed)	~8.5% p.a. (Volatile/unbuffered)
Management Costs	0.14% MER	0.04% MER

Price comparison chart

As of 28 Sept, 2:40 pm AEST • Disclaimer

28 Sept 2026 10:00 am - 2:40 pm

Chart Summary

Asset Name	Asset Price	Price Delta	Percent Delta
Argo Investments Ltd	$9.07	-$0.14	1.52%
Vanguard All-World ex-US Shares Index ETF	$119.52	-$0.21	0.18%

---

The Buffett Style Breakdown

1. Price is What You Pay, Value is What You Get (P/E & Valuation)

Buffett heavily prioritizes buying productive assets at a low multiple of their owner earnings.

VEU wins significantly on value. At a P/E of 16.6x, VEU offers a far higher earnings yield (~6%) than ARG’s 26.5x (~3.7%). [1, 2]
ARG’s premium is structurally tied to its status as a Listed Investment Company (LIC) that accumulates profit reserves. However, from a pure value perspective, VEU buys you access to global economic powerhouses (like TSMC and ASML) at a much steeper margin of safety. [1, 2]

2. The Power of Productive Moats (10-Year Growth)

Buffett prefers broad macroeconomic tailwinds and capital compounders over localized concentration.

VEU has demonstrated stronger long-term compounding with a total return of 10.28% p.a. over the past decade, compared to ARG's 9.0% p.a. [1, 2]
ARG relies on the heavily concentrated Australian banking and resources sectors. VEU capitalizes on structural global moats across tech, healthcare, and industrial manufacturing outside the US. [1, 2]

3. Look at the Retained Earnings (Dividend and Dividend Growth)

Buffett cares less about immediate dividend yield and more about how efficiently capital is grown over time.

The Income Illusion: ARG offers a tempting 6.0% grossed-up yield via Australia's franking credit system. Under the hood, however, its dividend growth has been sluggish at 2.7% p.a.—barely keeping pace with long-term inflation.
The Growth Reality: VEU pays a lower cash yield (~2.5%), but its dividend growth rate has compounded at a spectacular 8.5% p.a. over the last 5 years. [1, 2, 3, 4]

4. Frictional Costs (The Institutional Imperative)

Buffett consistently warns retail investors about the compounding drag of fees.

VEU’s institutional efficiency shines here with an exceptionally low expense ratio of 0.04%.
ARG's 0.14% fee is highly competitive for an actively managed LIC, but it still requires the portfolio managers to consistently outmarket the index just to match VEU’s structural fee advantage. [1, 2]

The Verdict

From a pure "Buffett Style" framework, ASX:VEU is the structurally superior investment asset. It aligns more closely with his core pillars: a lower valuation multiple (P/E), greater operational diversification, significantly stronger dividend compounding, and rock-bottom frictional management fees.

ASX:ARG remains a world-class vehicle, but primarily as a tactical tool for domestic, tax-effective Australian cash flow rather than an aggressive engine for global capital compounding.

..............

...................................