I know it is tempting to compare index funds, like VAS, to superannuation products, but it is also a comparison that can be misguided. Just remember, you are comparing an investment vehicle made up completely of stocks (VAS), with what is (should be) a diversified fund made up of stocks, bonds, cash equivalents, direct property, private equity and more.
I agree superannuation funds have excessive fees. Personally, there aren't many fund managers worth paying over 1%. I tend to think this will be the upper bar for all managers in the next ten years. For that, I thank index funds. However, there are a lot of things I wont thank index funds for... and that is their influence on market efficiencies and valuations, not to mention their complete reliance on active stock pickers to maintain market fundamentals. Index funds really are the bully at school that copies the smart kids homework.
It is pleasing to see a lot of superannuation funds choosing to undertake their own investment management, rather than relying on third party managers, which has been the norm for far too long. I expect the days of superannuation funds outsourcing all their funds management to be numbered. This should a significant decrease in fees...
