Vanguard adds Australian shares offerings to its ESG suite
Vanguard | 14 October 2020
Vanguard Australia has launched an Australian Shares Environmental, Social and Governance (ESG) Fund and Exchange Traded Fund (ETF), adding additional choice to its Ethically Conscious range which also includes international shares and fixed income offerings.
The Vanguard Ethically Conscious Australian Shares Fund and ETF (ASX:VETH) provide exposure to approximately 240 shares listed on the ASX while removing companies with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power, and adult entertainment.
The Fund and ETF also exclude shares of certain companies whose conduct contravenes the principles of the UN Global Compact pertaining to labour rights, human rights, environment and anti-corruption, and will be offered at a low management expense ratio of 0.20 per cent and 0.16 per cent respectively.
|Vanguard Ethically Conscious Australian Shares Fund||FTSE Australia 300 Choice Index||0.20% p.a.|
|Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)||FTSE Australia 300 Choice Index||0.16% p.a.|
Evan Reedman, Head of Product at Vanguard Australia, said Vanguard continues to seek ways to deliver long-term ESG strategies to investors.
“In this range, we are focused on delivering funds that screen for the evolving needs and preferences of ESG investors while staying true to the core principles that underpin all of our products: clear goals, broad diversification, low costs and a long-term view.
“We've seen a growing demand from both our financial advisor and retail clients for responsible and ethical products, demonstrated by consistent growth in our existing Ethically Conscious funds, which were launched in September 2018.
“Investors want funds that are consistent with their values without having to make the trade off with performance or their financial goals, and we continue to seek ways to deliver on that need.
“These products, when used in combination with our existing ethically conscious funds, enable investors to build a well-diversified global ESG portfolio that benefits from consistent, transparent methodology and values,” said Mr Reedman.
The fund is benchmarked to the custom-built FTSE Australia 300 Choice Index and seeks to track the return of this index before taking into account management fees, expenses and tax.
The new products add to Vanguard Australia's diverse offering of index and active managed funds and ETFs, bringing the total number of fund offerings to 82, including 30 ETFs.
To learn more about the products, visit https://www.vanguard.com.au/adviser/en/esg-approach/esg-investing-tab.
With nearly AUD $9 trillion in assets under management as of 30 September 2020, including more than AUD $1.9 trillion in ETFs, Vanguard is one of the world's largest global investment management companies. In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 20 years.