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Three new ETFs trading on the ASX

Vanguard expanded its exchange traded fund (ETF) range this week, adding three new funds to its suite of Australian and International equity ETFs…. 


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    An ETF is a diversified portfolio of securities constructed using an index approach that can be readily traded on the Australian Securities Exchange (ASX).

    Investors in Vanguard ETFs own a share of a portfolio of listed securities, indexed by Vanguard. As an index manager Vanguard aims to deliver an index return, before fees, by building investment portfolios using similar assets and weightings as the index. This means an ETF’s returns, before costs, should closely match the index it tracks, just like a traditional index managed fund.

    The benefits of these funds are that they combine the features of direct shares and managed funds incorporating diversification, access, and lower costs when compared to actively managed funds and also when compared to buying the individual shares which comprise the index.

    The Australian ETF market has seen huge growth in recent years – with a three year growth rate of 70 per cent per annum –  to nearly $5 billion dollars, and worldwide ETFs now account for over $1.4 trillion in assets. *

    Vanguard’s new ETFs quoted for trading on the ASX included:

    Vanguard® Australian Shares High Yield ETF
    (ticker code VHY)
    Vanguard® MSCI Australian Small Companies Index ETF  
    (ticker code VSO)
    Vanguard® MSCI Australian Large Companies Index ETF  
    (ticker code VLC)

      These funds all track significant segments of the Australian share market, and represent straightforward, balanced, and well-diversified investment opportunities.

         

      In addition to launching three new funds, Vanguard announced recently that it has lowered the management expense ratio on two of its existing ETFs:  

      – The Vanguard® Australian Shares Index ETF (VAS) has been reduced from 0.27 to 0.15 per cent p.a.

      – The Vanguard® Australian Property Securities Index ETF (VAP) has been reduced from 0.34 to 0.25 per cent p.a. 

      About the new range of Vanguard ETFs:


      Fund Name

      ASX Code

      Fund Objective

      About the index

      Fee p.a.

      Vanguard Australian Shares High Yield ETF

      VHY

      Seeks to match the return (income and capital appreciation) of the FTSE ASFA Australia High Dividend Yield Index (before fund fees and expenses)

      The FTSE ASFA Australia High Dividend Yield Index generally comprises approximately 60 securities listed on the ASX with higher relative forecast dividend yield.

      0.25 
      per cent

      Vanguard MSCI Australian Large Companies Index ETF

      VLC

      Seeks to match the return (income and capital appreciation) of the MSCI Australian Shares Large Cap Index (before fund fees and expenses)

      The MSCI Australian Shares Large Cap Index targets coverage of around 70 per cent of free float-adjusted market capitalisation of the Australian share market.

      0.20 
      per cent

      Vanguard MSCI Australian Small Companies Index ETF

      VSO

      Seeks to match the return (income and capital appreciation) of the MSCI Australian Shares Small Cap Index (before fund fees and expenses)

      The MSCI Australian Shares Small Cap Index is a small capitalisation index generally consisting of the smaller companies on the Australian equity market targeting coverage of around 14 per cent of free float-adjusted market capitalisation of the Australian share market.

      0.30 
      per cent

      Source: ETFWorld – Vanguard


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