Best all-in-one ETFs Australia 2025: DHHF vs VDHF vs VDGR
One fund. Thousands of companies. Automatic rebalancing. Here's how Australia's top diversified ETFs compare — and which one fits your goals.
Tip
What is a one-fund ETF?
A one-fund (or "all-in-one") ETF holds a diversified mix of global share markets — and sometimes bonds — in a single fund. Instead of buying Australian shares, US shares, and international shares separately and manually rebalancing between them every year, you buy one ETF and the fund manager handles everything.
For most Australian retail investors, this is the simplest and most effective way to build long-term wealth. You get diversification across thousands of companies in one trade, with no rebalancing work.
The main options compared
| ETF | Provider | Allocation | MER p.a. | Best for |
|---|---|---|---|---|
| DHHF | BetaShares | 100% equities (37% AU, 63% Intl) | 0.19% | Pure growth, lowest cost |
| VDHF | Vanguard | 90% growth / 10% defensive | 0.27% | Growth with small buffer |
| VDGR | Vanguard | 70% growth / 30% defensive | 0.27% | Balanced growth, 5–10yr horizon |
| VDBR | Vanguard | 50% growth / 50% defensive | 0.27% | Conservative, near retirement |
| VDCO | Vanguard | 30% growth / 70% defensive | 0.27% | Capital preservation |
MER = Management Expense Ratio (annual fee). Data current as of May 2026 — verify on the fund provider's website before investing.
DHHF vs VDHF — the key differences
These are the two most popular choices for long-term Australian investors. The decision usually comes down to three factors:
1. Growth allocation
DHHF is 100% equities — no bonds, no cash. VDHF is 90% equities / 10% defensive(bonds and cash). Over a 20-year period, pure equities outperform — but the ride is bumpier. In a bad year, DHHF might fall 35–40%. VDHF might fall 30–35%. The defensive buffer is small but meaningful during drawdowns.
2. Cost
DHHF charges 0.19% p.a., VDHF charges 0.27% p.a. On a $50,000 portfolio that difference is $40/year. Over 30 years compounded, it adds up — but it's not a dealbreaker. Both are dramatically cheaper than most managed funds (1–2% p.a.).
3. Australian vs international mix
DHHF holds ~37% in Australian shares, 63% international. VDHF holds ~36% Australian, 54% international equities, plus 10% bonds. Both have significant Australian exposure, which brings franking credit benefits on the dividend component.
Franking credits: do they matter?
Yes, and they're one reason Australian investors often prefer a higher Australian exposure than global market weight (~2%) would suggest. Franking credits represent 30% corporate tax already paid by Australian companies — when distributed to shareholders, they can offset your personal tax bill.
DHHF and VDHF both pass through partial franking credits because ~35–37% of their holdings are Australian. This makes them reasonably tax-efficient for Australian residents. If maximising franking credits is a priority (typically for retirees), consider supplementing with a pure Australian ETF like VAS or A200.
Who should use each fund?
Choose DHHF if…
- • You have a 10+ year investment horizon
- • You can tolerate volatility without selling in a downturn
- • Minimising fees is important to you
- • You want the simplest possible portfolio
Choose VDHF if…
- • You want a small bond buffer to reduce drawdowns
- • You prefer Vanguard's brand and structure
- • You're 5–10 years from needing the money
- • The small extra fee doesn't concern you
Important
How to buy a one-fund ETF
Both DHHF and VDHF are listed on the ASX and trade like shares. You'll need a brokerage account:
- Stake — $0 brokerage on US markets, $3 per ASX trade. Good for small regular buys.
- Pearler — $6.50 per trade, with auto-invest and CHESS sponsorship. Built for long-term investors.
- CommSec — $10–$19.95 per trade. Higher cost but trusted, good CHESS sponsorship.
- SelfWealth — $9.50 flat per trade. Simple, CHESS sponsored.
Once you have an account, search the ticker (DHHF or VDHF) and place a market or limit order. That's it. Set up a monthly transfer and buy each payday if you want to dollar-cost average.
Frequently asked questions
What is a one-fund or all-in-one ETF?
A one-fund ETF (also called a diversified or multi-asset ETF) holds a mix of global share markets in a single fund. Instead of buying separate Australian, US, and international ETFs and rebalancing between them, you buy one fund that does it automatically. Examples include DHHF (BetaShares) and VDHF (Vanguard).
What is the difference between DHHF and VDHF?
DHHF is 100% equities (no defensive assets) — roughly 37% Australian shares, 63% international shares, with MER 0.19% p.a. VDHF is 90% growth/10% defensive (bonds and cash) with MER 0.27% p.a. DHHF will be more volatile but has a slightly higher expected long-run return. VDHF is better if you want a small buffer against market crashes.
Is DHHF or VDHF better for long-term investing?
For investors with a 10+ year timeline who can tolerate volatility, DHHF's 100% equities allocation and lower MER (0.19% vs 0.27%) typically gives a slightly higher expected long-term return. VDHF suits those who want slightly smoother returns and don't mind the small fee premium for the defensive allocation.
What does MER mean and why does it matter?
MER (Management Expense Ratio) is the annual fee charged by the fund manager, expressed as a percentage of your investment. A 0.19% MER means you pay $19 per year on a $10,000 investment. Over 30 years, a 0.1% fee difference compounds to a meaningful gap in returns — lower MER is always preferable, all else equal.
Do DHHF and VDHF pay dividends?
Yes — both distribute income (dividends and interest from underlying holdings) quarterly. DHHF distributions are 100% from equity dividends, while VDHF distributions include a small component of bond interest. Both pass through franking credits from Australian shares, which can provide a tax offset at tax time.
Can I buy DHHF or VDHF on any broker?
Yes. Both are ASX-listed ETFs and can be purchased through any Australian broker — CommSec, Stake, Pearler, SelfWealth, or similar. They trade like shares during ASX hours. Most low-cost brokers charge $0–$9.50 per trade, making them accessible even for small regular investments.
Is one all-in-one ETF enough for a diversified portfolio?
For most retail investors, yes. DHHF holds over 8,000 underlying stocks across more than 40 countries through its underlying funds. VDHF is similar. The main thing you're giving up is the ability to customise your regional allocation — for example, overweighting Australian shares for franking credit benefits.