Vanguard builds on ETF base with the upcoming launch of three new funds
Vanguard | 11 April 2011
Vanguard today announced its intention to launch three new Australian Exchange Traded Funds (ETFs) which will all track segments of the Australian share market. The new funds will include Australian small and large companies ETFs and a high yield Australian shares ETF complementing Vanguard's existing range of funds.
The ETFs, which Vanguard has applied for quotation for trading on the Australian Securities Exchange (ASX) at the end of May 2011, will continue to develop Vanguard’s product line to provide Australian investors with diversified and low cost building blocks for portfolio construction.
Robyn Laidlaw, Vanguard’s Head of Product Development and Management, said “This is another step to deliver a low cost range of index-based ETFs for Australian investors and these new funds have been developed in line with our product development philosophy which is based on diversification and cost efficiency.”
The launch of three new funds comes as the appetite for ETFs continues to build amongst advisers and individual investors and will bring the number of Vanguard ETFs trading on the ASX to seven.
The ETF market in Australia is developing quickly as investors and advisers gain familiarity with these funds and realise their benefits, and as more choice is introduced to the market.
Joseph Brennan, Vanguard's Chief Investment Officer said, “The continuing shift in the Australian market place towards low cost, transparent, and diversified index funds and ETFs is a positive development for investors. Minimising costs and sensible asset allocation remain the most important success factors in investing.”
Mr. Brennan noted that recently released Rainmaker data shows index investments now represent 16.4 per cent of Australian assets (up from 10.3 per cent five years ago).
Vanguard launched its first ETFs in the Australian market place in May 2009 which have since grown to over $308 million* representing almost six per cent of the total Australian market. Vanguard Australian Shares Index ETF (VAS) is positioned as the fifth largest ETF quoted for trading on the ASX.
In the US, Vanguard is one of the largest providers in the well established ETF market, with nearly $157 billion in assets as at end of February 2011.
The funds discussed above are not yet available for investment and further information will follow closer to the listing date of the funds. A Product Disclosure Statement will be made available when the funds are launched and will be available at www.vanguard.com.au.
For further information on Vanguard’s existing range of Exchange Traded Funds please click here.
*As at 28 February 2011
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer of the Vanguard® Australian Shares Index ETF and the Vanguard® Australian Property Securities Index ETF and will be the product issuer of the three new ETFs.
Vanguard is the issuer of the Prospectus on behalf of the US listed exchange traded funds (“ETFs”) described in the Prospectus. Vanguard has arranged for interests in the US ETFs to be made available to Australian investors via CHESS Depositary Interests that are quoted on the AQUA market of the Australian Securities Exchange (“ASX”).
Vanguard ETFs will only be issued to Authorised Participants, that is, persons who have been authorised as trading participants under the ASX Operating Rules. Retail investors can transact in Vanguard ETFs through a stockbroker or financial adviser on the secondary market.
Investors should consider the Prospectus and PDS in deciding whether to acquire Vanguard ETFs. Retail investors can only use the Prospectus and PDS for informational purposes.
We have not taken your circumstances into account when preparing this publication so it may not be applicable to your circumstances. You should consider your circumstances and the relevant PDS and/or Prospectus before making any investment decision. You can access the relevant PDSs and/or Prospectus at www.vanguard.com.au or by calling 1300 655 101.
This publication was prepared in good faith and we accept no liability for any errors or omissions. Not all articles are prepared by Vanguard so they may not represent our views.
‘Vanguard’ ‘Vanguard Investments’ ‘Plain Talk’ and the ship logo are trademarks of The Vanguard Group, Inc
© 2011 Vanguard Investments Australia Ltd. All rights reserved.
Standard & Poor’s® and S&P® are trademarks of are trademarks of Standard & Poor's Financial Services LLC ("S&P") and ASX® is a registered trademark of the Australian Stock Exchange Limited (“ASX”). These trademarks have been licensed for use by The Vanguard Group, Inc. Vanguard's ETF(s) is not sponsored, endorsed, sold or promoted by S&P or ASX, and S&P and ASX make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Vanguard ETF(s).
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the Prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds.
”FTSE®” is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. “All-World” is a trade mark of FTSE International Limited. The FTSE All-World ex-US Index is calculated by FTSE International Limited. FTSE International Limited does not sponsor, endorse or promote this product; is not in any way connected to it; and does not accept any liability in relation to its issue, operation and trading.