POWERED BY MOMENTUM MEDIA
Vanguard adds three ETFs and cuts fees
Vanguard has announced three new locally domiciled exchange-traded funds (ETFs) to its existing suite of four ETFs, and also slashed the fees on its two existing local ETFs.
The new products include a high yield ETF based on the FTSE ASFA Australian high dividend yield index which contains a basket of around 60 stocks, with a management expense ratio (MER) of 25 basis points.
The firm also announced a large cap ETF based on the MSCI Australian large cap index which covers the top 70 per cent market capitalisation of the Australian share market with a fee of 0.20 per cent; as well as a small cap ETF based on the MSCI Australian small cap index covering the bottom 15 per cent of the market with a fee of 0.30 per cent.
Vanguard also announced it would be reducing the MER on its Australian shares ETF from 0.27 per cent to 0.15 per cent, and on its property securities ETF from 0.34 per cent to 0.25 per cent.
Vanguard’s other two ETF products are a US total market shares ETF based on the MSCI US broad market index, which includes around 3,300 stocks; and an all-world ex-US shares index that tracks the FTSE all-world ex-US index, covering 46 countries and including emerging markets.
On the firm’s measured approach to releasing new ETF products, Vanguard’s principal, corporate affairs and development Robin Bowerman said he didn’t think it was necessarily a fantastic idea to be rapidly releasing large numbers of new ETF products. But he also said the firm would continue to look at new products, including potentially fixed income ETFs, with a view to adding some more products down the track.
The new and existing products are targeted at both institutional and retail investors, but so far the majority of the firm’s ETF growth in Australia has been through both advised and non-advised self-managed super funds, and direct high net worth investors, Bowerman said.
Recommended for you
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
32.16 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
