Balancing cost and quality
Low cost and high-quality products – that is what Vanguard says puts them ahead of other exchange traded fund (ETF) providers as they take out the 2021 Money Management Fund Manager of the Year ETF Provider of the Year award.
Minh Tieu, Vanguard head of ETF capital markets Asia Pacific, said the firm was proud of its broadly diversified product range which gave investors the best chance for investment success.
“We’re all about ensuring the best outcome and making sure our investors get the best outcome,” Tieu said.
“We can achieve that by offering low-cost products – cost is an important factor in the long scheme of returns.
“We try to cater to what clients are wanting in terms of exposure to different markets and exposure to global versus local, and different asset classes as well.”
Tieu said the firm’s flagship ETF, Australian Shares, had been a solid performer throughout the last couple of years and continued to be.
“It’s proven to be a great way to get access to the local Australian market; outside of that, we’ve seen a trend in the international space,” Tieu said.
However, its diversified product range, which included the Diversified High Growth fund, also saw significant uptake and had been popular with retail investors.
“We’ve seen a lot more interest in that and that’s a great way for investors to start off investing in ETFs because it gives you a pre-defined risk mix and exposure to multiple asset classes,” Tieu said.
“It’s one of those ETFs that are great for someone who’s just getting started – especially when you’re not sure which ETF to buy.”
BlackRock received a highly commended and Christian Obrist, head of iShares – BlackRock Australasia, said three things defined the iShares franchise: quality, transparency, and resiliency of the products.
The iShares Core S&P/ASX 200 ETF and the iShares Core Composite Bond ETF were cited by Obrist as the two standouts.
“They’re very plain vanilla products – long only, non-levered, fully transparent, and very popular with investors,” Obrist said.
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