Vanguard passes on cost savings
Vanguard Investments has moved to make its offering more attractive by passing on cost savings on its exchange traded fund (ETF) products.
The company announced this week that the expense ratio for the Vanguard US Total Market Share Index ETF (VTS) has declined from 0.07 per cent per annum to 0.06 per cent per annum.
The expense ratio change was due to the fund experiencing greater efficiencies through scale - an advantage which Vanguard is passing back to the fund's investors in the form of lower expenses.
According to Vanguard, the VTS is a cross-listed ETF, which means that its primary listing is on an overseas exchange and the fund is cross-listed - in this case, to the Australian Securities Exchange - thereby making it accessible to Australian investors.
This type of ETF is priced in local currency and sold in Australia as CHESS Depository Interests.
Commenting on the price change, the head of Vanguard's product management and development in Australia, Robyn Laidlaw, said Vanguard was delighted to be passing on the benefit of fund growth to Australian investors in the form of a lower expense ratio.
"Maintaining low costs for investors is part of our DNA at Vanguard, with our low cost philosophy driven from the mutual structure of our parent company," she said.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
