Stop Picking Stocks! Why 'Vanguard ETFs' (VAS/VGS) Are the Laziest Way to Get Rich

Stop Picking Stocks!

We all have that friend. The one who bought NVIDIA before the AI boom and thinks they are the Wolf of Wall Street. Or the friend who put their life savings into a speculative lithium miner and lost 80% overnight.

Picking individual stocks is exciting. It feels like gambling because, for most people, it is.

But if you want to actually build generational wealth in Australia without being glued to a screen all day, there is a boring, simple, and statistically superior solution: Exchange Traded Funds (ETFs).

Here is why the "Vanguard Strategy" (specifically VAS and VGS) remains the default choice for smart Aussie investors in 2026.

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1. What is an ETF? (Buying the Haystack)

Jack Bogle, the founder of Vanguard, famously said: "Don't look for the needle in the haystack. Just buy the haystack!"

Instead of trying to pick the one winning company (the needle), an ETF lets you buy the entire market (the haystack) in a single trade.

• Risk Reduction: If one company goes bankrupt, it doesn't matter. You own hundreds of others.
• Low Cost: Unlike "Active Managed Funds" that charge 1-2% fees, Vanguard ETFs often charge rock-bottom fees (e.g., VAS is approx. 0.07% p.a.).

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2. The Aussie Champion: Vanguard Australian Shares (VAS)

If you want to own a slice of Australia, you buy VAS.

• What is it? It tracks the ASX 300. You instantly own the top 300 companies in Australia (BHP, Commonwealth Bank, CSL, Macquarie Group, etc.).
• Why buy it? Dividends. Australian companies pay huge dividends compared to US companies. Plus, you get Franking Credits, which give you a tax refund just for holding the shares.
• The Role: This is your reliable income generator.

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3. The Global Giant: Vanguard International Shares (VGS)

Australia is only roughly 2% of the world economy. If you only buy Aussie stocks, you miss out on Apple, Microsoft, NVIDIA, Amazon, and Google. That is where VGS comes in.

• What is it? It tracks the MSCI World ex-Australia Index. You own over 1,400 of the world's biggest companies across 20+ developed countries.
• Why buy it? Growth. Tech giants in the US historically grow much faster than Aussie banks. This provides capital appreciation.
• The Role: This is your growth engine.

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4. The Ultimate "Lazy" Portfolio

So, how do you combine them? The most popular strategy for Australian investors is a simple split (often called the "Core & Satellite" approach).

🥧 The 40/60 Split Example

• 40% VAS (Australia): For high dividends, Franking Credits, and currency stability (no currency conversion fees).
• 60% VGS (Global): For massive exposure to US Tech and global growth sectors.

How to manage it: Whenever you have savings (e.g., $1,000), you simply buy whichever one is currently underweight. That's it. No analyzing charts, no reading annual reports.

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5. Why "Boring" Wins

Active fund managers—professionals paid millions to pick stocks—fail to beat the index 80-90% of the time over a 15-year period.

If the pros can't do it, you probably can't either.

By buying VAS and VGS, you guarantee that you will get the market return. Over the last 100 years, the market has trended up despite wars, recessions, and pandemics.

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Get Rich Slowly

This strategy won't make you a millionaire by next Tuesday. It is a "Get Rich Slow" scheme.

But unlike the "Get Rich Quick" schemes, this one actually works. Set up an auto-invest plan, buy the index, and go enjoy your life. In 20 years, your compound interest will astound you.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. The author is not a licensed financial adviser. VAS and VGS are financial products issued by Vanguard. You should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any investment decision. Past performance is not a reliable indicator of future results.