Expense ratio declines on Vanguard index
Vanguard Investments Australia has announced the expense ratio for the Vanguard All-World Ex-US Shares Index ETF (VEU) has declined from 0.22 per cent p.a. to 0.18 per cent p.a.
Commenting on the result, Vanguard said that keeping investment costs low for investors was at the heart of its investment philosophy.
"This fee reduction is a function of the way Vanguard's US-domiciled funds operate - when funds experience greater efficiencies (either through asset growth, operating cost reductions, or a combination of both) the savings are delivered to the fund investors in the form of lower expenses," it said.
"VEU is a cross-listed ETF. Cross-listed ETFs make it possible for Australian investors to access funds which they may not normally have access to on overseas share markets by cross-listing the fund on the local exchange."
"It is priced in local currency (e.g. Australian dollars) and sold (in Australia) as CHESS Depository Interests (CDIs)."
The VEU began trading on the Australian Securities Exchange in May 2009 and in the US in March 2007. The total size of this ETF was AUD$5.7 billion as at 31 December 2011.
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