What Does the Vanguard Australian Fixed Interest Index ETF (ASX:VAF) Hold and How Does Its Latest Distribution Work?

Sonal Goyal

11 October 2026 02:25 PM AEDT

What Does the Vanguard Australian Fixed Interest Index ETF (ASX:VAF) Hold and How Does Its Latest Distribution Work?

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The Vanguard Australian Fixed Interest index ETF (ASX:VAF) last traded at A$44.67 on 9 October 2026, up A$0.10 or 0.22% on the day, with 59,826 units traded and a bid/offer range of A$44.62 to A$44.80. The fund’s size was A$3.88 billion. This article summarises the fund’s structure, its latest distribution and the composition of its portfolio.

Ticker	Fund name	Price (9 Oct 2026)	Fund size	Category
ASX:VAF	Vanguard Australian Fixed Interest Index ETF	A$44.67 (+A$0.10, +0.22%)	A$3.88 billion	Bonds - Australia

Type	Distribution amount	Annual yield	Ex date	Record date	Payment date
Interim	A$0.312	3.51%	1 Oct 2026	2 Oct 2026	16 Oct 2026

Fund overview

VAF is an exchange-traded fund admitted to the ASX on 31 October 2012. It is categorised as Bonds - Australia, and its benchmark is the Bloomberg AusBond Composite 0+Y TR AUD index. The management fee is 0.10%, and there were 87,054,954 units outstanding. Its ISIN is AU000000VAF8.

The fund aims to hold an appropriate number of fixed and floating rate securities to produce a portfolio risk exposure consistent with that of the index. This is generally achieved by holding a representative sample of the index’s securities or securities with similar characteristics. Vanguard selects holdings based on liquidity, access to markets, portfolio Cash Flow and minimum trade quantities, with the aim of tracking the index return.

Latest distribution

The latest distribution is an interim distribution of A$0.312 per unit, with an annual Yield of 3.51%. The ex-date was 1 October 2026, the Record Date 2 October 2026 and the payment date 16 October 2026. The yield figure is a calculated measure that depends on the unit price and the distributions on which it is based, and it is not a forecast of future distributions.

Recent ASX announcements for the fund include an updated estimated distribution (1 October 2026), the final distributions notice and details of the distribution reinvestment plan (2 October 2026), a distribution tax estimate (5 October 2026) and an outstanding securities notice for September 2026 (7 October 2026).

Portfolio composition

The portfolio held 852 securities, with the top ten holdings making up 23.02% of the fund. By asset type, 98.47% was in bonds, 1.20% in cash, 0.33% in stock and the remainder nil in other. By geography, 86.02% was in Australia, followed by supranational issuers (4.61%), Canada (2.68%), Germany (1.77%), the United States (0.75%), the Netherlands (0.70%), New Zealand (0.58%), the United Kingdom (0.57%), France (0.49%) and South Korea (0.35%).

The largest holdings were Australian Commonwealth Government bonds, including a 2.75% bond at 2.56%, another 2.75% bond at 2.47%, a 1.5% bond at 2.44%, a 3.25% bond at 2.41%, a 2.5% bond at 2.32%, a 4.75% bond at 2.28%, a 1% bond at 2.22% and a 1.25% bond at 2.07%, together with two Australian Commonwealth Government Loans holdings at 2.15% and 2.06%.

Sector backdrop

Australian fixed interest Index Funds hold a mix of government, semi-government, supranational and corporate bonds, and their unit prices move with interest rates and Credit conditions. When yields rise, existing bond prices generally fall, and when yields fall, prices generally rise.

Category descriptions for Bonds - Australia funds state that they invest in traditional Australian fixed interest securities, including government and corporate Debt with terms to Maturity generally greater than one year, with average credit quality typically ‘A’ or above.

Distributions from bond funds reflect interest income received by the fund, net of costs, and can vary from period to period.

Risks investors should weigh

Interest rate risk is the main Factor affecting a fixed interest fund’s unit price, because rising rates can reduce the Market Value of the bonds it holds.

The fund holds a representative sample of its index, so its returns may differ from the index because of fees and sampling. Credit risk applies to the non-government bonds it holds, and some holdings are issued outside Australia.

Distribution amounts change each period, and the annual yield does not guarantee future income. Exchange-traded units can trade at prices that differ from the value of the underlying assets, and trading volumes vary.

What’s next

The distribution is payable on 16 October 2026. Investors who wish to understand the fund further may wish to read the product disclosure statement and the distribution reinvestment plan notice published on the ASX.

FAQs

Q: What is the Vanguard Australian Fixed Interest Index ETF?

A:An ASX-listed fund, code VAF, that aims to track the Bloomberg AusBond Composite 0+Y TR AUD index, with a management fee of 0.10%.

Q: What is the latest VAF distribution?

A:An interim distribution of A$0.312 per unit with an annual yield of 3.51%, paid on 16 October 2026 to holders on the 2 October 2026 record date.

Q: What does VAF hold?

A:About 98.47% bonds across 852 holdings, with 86.02% in Australia and large positions in Commonwealth Government bonds.

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