Spotlight: Vanguard Australian Property Securities Index ETF (ASX: VAP)

Get the lowdown on the Vanguard Australian Property Securities Index ETF (ASX: VAP), including where it invests, its fees and how it has performed.

By InvestSMART · 19 Jan 2026

By InvestSMART ·
19 Jan 2026 · 5 min read

Comments

Each month in our ETF Spotlight series, we put the focus on one of the ETFs inside our ETF portfolios or available through InvestSMART Custom.

This time, we're looking at Vanguard Australian Property Securities Index ETF (ASX: VAP), which we use for exposure to property in our diversified portfolios and our Property and Infrastructure Portfolio. Here's what you need to know.

About the Vanguard Australian Property Securities Index ETF (ASX: VAP)

The Vanguard Australian Property Securities Index ETF (ASX: VAP) is a simple way to invest in a diversified portfolio of ASX-listed property securities (A-REITs).

Vanguard says the ETF suits buy-and-hold investors seeking long-term capital growth and some income via exposure to a portfolio of Australian property securities, and who have a higher tolerance for the risks associated with share market volatility. The suggested investment timeframe is seven years or more.

Here are a few quick facts about VAP:

Investment manager: Vanguard
Inception date: 11 October 2010
Size: $3.2 billion
Management fee: 0.23%
Benchmark: S&P/ASX 300 A-REIT Index
InvestSMART rating: 4 stars
Distribution frequency: Quarterly

Where is VAP invested?

The ETF is made up of about 30 A-REITs with residential, office, retail and industrial assets. The top 10 holdings, which make up roughly 85% of the portfolio, are listed below.

Top 10 holdings

Company	Sector	% of net assets
Goodman Group	Industrial	35.06%
Scentre Group	Retail	12.13%
Stockland	Diversified	7.68%
Charter Hall Group	Diversified	6.40%
GPT Group/The	Diversified	5.75%
Vicinity Ltd	Retail	5.54%
Mirvac Group	Diversified	4.48%
Dexus	Office	4.13%
National Storage REIT	Specialized	2.12%
Region RE Ltd	Retail	1.51%

Source: Vanguard. Holdings as of 31 December 2025.

What is VAP's management fee?

VAP has a relatively low management fee of 0.23%. It sits between SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF) at 0.16% and VanEck Australian Property ETF (ASX: MVA) at 0.35%, although each tracks a different index.

How has VAP performed?

VAP's long-term performance has been solid, with the ETF returning an average of 9.96% a year since its launch in October 2010.

In the 12 months to the end of December 2025, it returned 9.33%. It also pays regular distributions. In 2025, for example, returns were split between 5.78% capital growth and 3.56% from distributions.

VAP performance

	1 year	3 yrs p.a.	5 yrs p.a.	10 yrs p.a.	SI p.a.¹
Total	9.33%	14.38%	8.63%	7.97%	9.96%
Benchmark	9.68%	14.68%	8.90%	8.14%	10.15%

Source: Vanguard. Returns for the period ending 31 December 2025. ¹Since inception on 11 October 2010.

Key takeouts

VAP offers diversified exposure to Australia's listed property sector through a broad portfolio of A-REITs. Its management fee is competitive and it has delivered solid long-term returns, supported by regular distributions. Of course, keep in mind that past performance is not a guarantee of future returns.

Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating. If you'd like help selecting the right InvestSMART ETF portfolio for you check out our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What is the Vanguard Australian Property Securities Index ETF (ASX: VAP)?

The Vanguard Australian Property Securities Index ETF (ASX: VAP) is a Vanguard‑managed exchange‑traded fund that provides exposure to ASX‑listed property securities (A‑REITs). Launched on 11 October 2010, the fund has around $3.2 billion in assets, tracks the S&P/ASX 300 A‑REIT Index, carries an InvestSMART 4‑star rating and charges a management fee of 0.23%.

What does VAP invest in and which companies are its biggest holdings?

VAP holds roughly 30 Australian REITs spanning residential, office, retail and industrial property. As of 31 December 2025 the top 10 holdings (which make up about 85% of the fund) were: Goodman Group (Industrial) 35.06%, Scentre Group (Retail) 12.13%, Stockland (Diversified) 7.68%, Charter Hall Group (Diversified) 6.40%, GPT Group/The (Diversified) 5.75%, Vicinity Ltd (Retail) 5.54%, Mirvac Group (Diversified) 4.48%, Dexus (Office) 4.13%, National Storage REIT (Specialized) 2.12% and Region RE Ltd (Retail) 1.51%.

How much does VAP charge in fees and how does that compare to other Australian property ETFs?

VAP's management fee is 0.23% per year. That sits between the lower‑cost SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF) at 0.16% and the higher‑fee VanEck Australian Property ETF (ASX: MVA) at 0.35%. Keep in mind each ETF may track a different property index, so fee is one factor to compare.

What has VAP's historical performance been and how did it perform recently?

Since its launch in October 2010 VAP has returned an average of 9.96% per year. For the 12 months to 31 December 2025 it returned 9.33%. Vanguard reports that in 2025 the total return was split about 5.78% from capital growth and 3.56% from distributions. Past performance is not a guarantee of future results.

How often does VAP pay distributions and how much income can investors expect?

VAP pays distributions quarterly. In 2025 distributions made up about 3.56% of the fund's total return, but distribution amounts can vary year to year depending on REIT income and market conditions.

Who is VAP suitable for and what is the suggested investment timeframe?

Vanguard says VAP suits buy‑and‑hold investors seeking long‑term capital growth plus some income from Australian listed property securities, and who can tolerate share‑market volatility. The suggested investment timeframe in the fund's documentation is seven years or more.

What are the main risks or considerations before investing in VAP?

Key considerations include exposure concentration to the Australian listed property sector (VAP is made up of A‑REITs and its top 10 holdings account for around 85% of the fund), share‑market volatility, and the fact that past performance does not guarantee future returns. Investors should assess their risk tolerance and investment horizon.

How can I compare VAP with other ETFs or find the right InvestSMART ETF portfolio?

InvestSMART offers an online ETF filter tool to compare ETFs by category, InvestSMART star rating and other filters. If you want personalised guidance, their free statement of advice quiz can suggest which InvestSMART ETF portfolio might best match your goals and timeframe.