New Vanguard ETFs offer diversified portfolios in one trade
Vanguard | 22 November 2017
Vanguard Australia today launched a suite of four exchange traded funds (ETFs) that provide greater access to its leading diversified portfolio strategies.
The four Vanguard Diversified Index ETFs represent a milestone in the Australian market, as the first ETFs allowing investors to gain diversification across and within all major asset classes, while making a clear choice about how much risk they take on.
The conservative (VDCO), balanced (VDBA), growth (VDGR) and high growth (VDHG) ETFs offer investors simple, single trade access to Vanguard's global expertise in portfolio management and asset allocation, with annual investment costs at just 0.27 per cent.
Each Diversified Index ETF is a share class of an existing Vanguard Diversified Index Fund, meaning ETF investors can tap into the benefits of an established asset pool, collectively worth more than $7 billion, through Vanguard's existing range of non-listed multi-asset funds. Vanguard's Diversified Index Funds consistently rank in the top quartile of performance with their peers over three, five and 10 year periods, according to Morningstar.
"Vanguard's Diversified Index Funds have been a leading option for investors for some time, and greater accessibility to these strategies through ETF vehicles is a significant development for the Australian market," Vanguard Australia Head of Product and Marketing, Evan Reedman, said.
"Offering investors a broadly diversified index portfolio through a single investment matched to their risk profile is a first in the Australian ETF market. This will make investing a far more accessible and transparent option for many Australians, and ultimately help them achieve their financial goals.
"Our Diversified Index ETFs stand to benefit a broad range of investors, from those looking for a transparent low-cost total portfolio solution, through to those who want to implement a diversified index core that can be complemented with active strategies or individual investments of their choosing.
"Another major advantage for investors using these ETFs is that they can rely on Vanguard's investment experts to continuously assess their portfolio's exposure and periodically rebalance it back to its intended level of risk."
Each Vanguard Diversified Index ETF provides investors with extensive global exposure to around 6500 individual companies and more than 5000 fixed income securities.
Vanguard's Investment Strategy Group, a global team of researchers and analysts, set the asset allocation of the diversified funds as part of a robust framework used by Vanguard globally. This framework includes analysis of concentration risk and currency exposure, and incorporates comprehensive modelling generated by Vanguard's proprietary forecasting engine, the Vanguard Capital Markets Model.
The launch of four Diversified ETFs grows Vanguard Australia's ETF offering to 22 funds, with total ETF funds under management of $9.4 billion.
Full details about Vanguard's new Diversified Index ETFs can be found at www.vanguard.com.au/diversifiedETFs.