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Australia's first International Small Companies ETF begins trading today on the ASX

Vanguard | 13 November 2018


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Vanguard's newest ETF - the Vanguard MSCI International Small Companies Index ETF begins trading today on the Australian Securities Exchange.

The new ETF trading as VISM is the first ETF listed in Australia to offer broadly diversified international small cap exposure to around 3910 holdings across 19 developed markets globally.

VISM allows ETF investors to tap into in the long-term growth potential typical of the international small companies sector.

This new ETF is a share class of a popular Vanguard wholesale fund, bringing a strategy backed by a strong track record of more than ten years, and $801m under management, to ETF investors.

Over these 10 years, the fund has produced a return of over 11 per cent per annum, while offering regional and sector diversification to a small caps universe of about 3910 holdings.

The new ETF joins five other ETFs listed by Vanguard Australia this year including two ESG ETFs, two active factor ETFs, and most recently the Vanguard Global Infrastructure Index ETF, bringing the total number of Vanguard ETFs on offer to 28.

“We are delighted to see this new ETF commence trading today, representing a first for Australian ETF investors, and providing a further highly diversified building block for our investors,” said Damien Sherman, Head of ETF Capital Markets.

“Despite significant market volatility in October, we continue to see increasing trading volumes across our low cost range of offerings, as ETFs continue to provide attractive investment options for Australians.

“As often happens with ETFs during volatile times, investors increased their usage of broad based ETFs as both an opportunity to “buy the dip” or to re-orient their portfolio toward index products that reduce their exposure to single stock risk”.

With total ETF assets under management of $12.2 billion as at 30 September 2018, Vanguard Australia is the largest ETF provider in Australia, capturing approximately 39 per cent of total industry cash flows year to date.