Vanguard expands ETF offering

ETFs/vanguard/launch/listed-infrastructure/infrastructure/Small-caps/robin-bowerman/

17 October 2018
| By Oksana Patron |
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Vanguard Australia has announced the expansion of its exchange traded funds (ETF) offering, with an upcoming launch of two new ETFFs, which will offer investors exposure to international small companies and global listed infrastructure.

Both funds, the Vanguard Global Infrastructure Index ETF (VBLD) and the Vanguard MSCI International Small Companies Index ETF (VISM), would commence trading on the Australian Securities Exchange (ASX) within a couple of weeks, with management expense ratios of 0.47 per cent and 0.32 per cent respectively.

VBLD would offer exposure to around 146 listed infrastructure companies across a range of industries, including transportation, energy and communications, while VISN would offer broadly diversified international small cap exposure to around 3,910 holdings across 19 developed markets globally, the firm said.

Vanguard Australia’s head of corporate affairs, Robin Bowerman, said: “The addition of these ETFs provides additional building blocks to allow investors to construct investment portfolios that are truly diversified across and within asset classes, and suited to their individual goals.”

Both VISM and VBLD would be ETF share classes of existing wholesale funds that were established 10 years ago and currently manage over $801 million and $338 million in assets respectively.

“The ETF market in Australia continues to grow in both assets under management and products on offer, demonstrating that investors are recognising the accessibility, diversification and low cost benefits of these funds,” Bowerman said.

“Increasingly, we see Australian investors looking to add international diversification to their portfolios, and these ETFs offer broad international exposure while at the same time providing greater ability to manage a portfolio’s allocation to specific asset classes.”

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