Own VTS ETF? Here's your next dividend

Vanguard has revealed the next distribution (or dividend) amount for the Vanguard US Total Market Shares Index ETF (ASX: VTS).

The VTS exchange-traded fund (ETF) will pay investors 95.08 US cents per unit on 22 January.

Based on today's exchange rate, that equates to A$1.44 per unit.

Vanguard will formally convert the dividend into Australian currency on 16 January.

The VTS ETF went ex-dividend today. The record date is tomorrow.

Vanguard does not offer a dividend reinvestment plan (DRP) with the VTS ETF, so all investors will receive a cash payment.

What is the VTS ETF?

The Vanguard US Total Market Shares Index ETF provides exposure to the entire US stock market, or about 3,500 companies.

There is US$6.43 billion worth of assets under management in this ASX ETF.

VTS tracks the performance of the CRSP US Total Market Index (NASDAQ: CRSPTM1) before fees.

An investment in the VTS ETF includes some of the world's biggest companies.

There's the Magnificent Seven stocks — Nvidia Corp (NASDAQ: NVDA), Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA).

There's also a new favourite among Aussie investors, AI and defence software company Palantir Technologies Inc (NASDAQ: PLTR).

There's also Warren Buffett's Berkshire Hathaway Inc Class A (NYSE: BRK.A) and Berkshire Hathaway Inc Class B (NYSE: BRK.B).

An investment in VTS has paid off in 2025, with US stocks on track to outperform ASX 200 shares for a third consecutive year.

As of today, the S&P 500 Index (SP: .INX) is up 16.2% while the S&P/ASX 200 Index (ASX: XJO) is up 6.1%.

In its 2026 investment outlook, top broker Morgan Stanley projects S&P 500 shares will rise about 14% next year.

Serena Tang, Morgan Stanley's Chief Global Cross-Asset Strategist, said:

There will be some bumps along the way, but we believe that the bull market is intact.

The broker predicts a 6% gain for ASX 200 shares.

When you add the current average ASX 200 dividend of about 3.5%, that implies a 9.5% return in 2026.

VTS ETF share price snapshot

The VTS ETF is $507.69 per unit on Monday, up 0.64%, while the ASX 200 is up 0.91% at 8,699.8 points.

VTS ETF has a price-to-earnings (P/E) ratio of 27.45x and a price-to-book (P/B) ratio of 4.64x.

The return on equity (ROE) is 24.745% and the earnings growth rate is 22.95%.

The management fee is a tiny 0.03% per annum.

The post Own VTS ETF? Here's your next dividend appeared first on The Motley Fool Australia.

Motley Fool contributor Bronwyn Allen has positions in Vanguard Us Total Market Shares Index ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025