Vanguard Announces DRP Prices Ranging from $38.87 to $149.76 for September Quarter

Vanguard Announces DRP Issue Prices

Vanguard Investments Australia Ltd has released the Distribution Reinvestment Plan (DRP) issue prices for its extensive range of ETFs and Active ETFs for the distribution period ending 30 September 2025. This announcement covers more than 20 funds, including popular offerings such as the Vanguard Australian Shares Index ETF (VAS) and the Vanguard Global Aggregate Bond Index (Hedged) ETF (VBND).

The DRP issue price is calculated by taking the closing price of each ETF at the end of the distribution period and subtracting the distribution entitlement per unit. This mechanism allows investors who opt into the DRP to reinvest their distributions back into additional units of the ETF, often at a slight discount to the market price, enhancing compounding potential over time.

Key Dates and Eligibility

Investors must be registered as security holders on the record date, 2 October 2025, to be eligible for the distribution. The ex-distribution date is 1 October 2025, meaning units purchased on or after this date will not receive the upcoming distribution. Elections to participate in the DRP must be made by 5pm on the record date. The distribution payment is scheduled for 16 October 2025.

Vanguard emphasises that only authorised participants can receive new ETF units directly under the DRP, while retail investors can transact on the secondary market through brokers or financial advisers. This structure maintains orderly market functioning and liquidity.

Investor Considerations and Market Context

While the announcement does not signal any changes to distribution policies or DRP availability, the detailed pricing provides transparency for investors planning their portfolio income and reinvestment strategies. Given the broad range of ETFs covered; from fixed interest and global equities to ethically conscious funds; investors have diverse options to tailor reinvestment according to their risk profile and market outlook.

Market participants will be watching how uptake of the DRP influences trading volumes and price dynamics around the ex-distribution date. With distributions representing a key component of total returns for many ETFs, the DRP remains an important tool for investors seeking to maximise long-term growth through compounding.

As always, Vanguard reminds investors to consider their individual circumstances, including tax implications, before making investment decisions. The company provides comprehensive disclosure documents and target market determinations to assist investors in understanding the suitability of each fund.