What ETFs are pre-loaded in the calculator?
Four of the most-traded Australian ETFs: VAS (Vanguard Australian Shares Index, tracking S&P/ASX 300), VGS (Vanguard MSCI Index International Shares ex-Australia), IVV (iShares Core S&P 500, AU-domiciled), and A200 (Betashares Australia 200). Plus a Custom option where you enter your own assumed CAGR. Historical 5-year returns are sourced from each provider's official May 2026 fact sheet — see the data table below for exact dates.
Does the calculator account for MER (management fees)?
Yes. Each preset has the published MER hard-coded (VAS 0.07%, VGS 0.18%, IVV 0.04%, A200 0.04%). The net return used in the projection is gross CAGR minus MER. For a long-time-horizon projection, MER drag compounds — VGS at 0.18% takes roughly 4-5% off the 30-year final balance versus a 0% MER fund.
Why use 5-year CAGR instead of 10-year or 20-year?
5-year is the shortest published period that smooths over a typical market cycle without being heavily skewed by a single bull or bear year. Two of the four pre-loaded ETFs (IVV AU-domiciled, A200) are less than 10 years old, so 10-year data does not exist for them. Use the Custom option if you want to test long-run assumptions (e.g., 8% nominal for a balanced fund baseline).
Does the projection include franking credits?
No — the 5-year CAGR figures already include reinvested distributions (the 'total return' a fund publishes is net-of-distribution + price growth). They do NOT include franking credit refunds, which depend on your marginal tax rate. For VAS (~82% franked) and A200 (~73.5% franked), a typical retail investor could add roughly 0.8-1.1% per year to the effective return after franking refunds — but this is highly individual. See the franking note in each AU ETF row.
How does inflation adjustment work?
The calculator shows both nominal final balance (the dollar number on your statement) and real final balance (what that dollar is worth in today's purchasing power). Default inflation is 2.5% — RBA's mid-target band. At 30 years and 2.5%, $1 today is worth roughly $0.48 — meaning a $1m nominal projection is closer to $477,000 in today's dollars. Real value is what matters for retirement planning.
Is this financial advice?
No. Velofy is a general information tool. The historical returns shown are factual, sourced from official provider fact sheets. The projections are illustrative arithmetic — they show what would happen IF historical returns repeated, which they may not. Past performance is not a reliable indicator of future performance. Consult a licensed financial adviser before making investment decisions.