Australian share ETFs: Comparison and overlap risks

Investors in the Australian share market have several prominent Exchange Traded Fund (ETF) options, including VAS, A200, IOZ, STW, and MVW. Among these, the Vanguard Australian Shares Index ETF (VAS) is noted for its scale, liquidity, and long-term track record, managing approximately $25.4 billion in assets as of June 2026.

While ETFs offer low-cost exposure and tax efficiency, investors must be cautious of portfolio overlap. Holding multiple broad-market ETFs, such as the Betashares Australia 200 ETF (A200) alongside the iShares Core S&P/ASX 200 ETF (IOZ), can lead to unintended concentration in the same companies. This duplication can result in paying multiple management fees for essentially the same underlying assets, though some investors may choose to hold overlapping funds to manage capital gains tax liabilities.