Vanguard expands ETF line-up offering low cost access to International Infrastructure and Global Small Companies

Vanguard | 17 October 2018

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Vanguard Australia has today announced the upcoming launch of two new exchange traded funds (ETFs), offering investors exposure to International Small Companies and Global Listed Infrastructure, and further building out the firm's range of broadly diversified low-cost ETFs.

The Vanguard Global Infrastructure Index ETF (ASX:VBLD) and the Vanguard MSCI International Small Companies Index ETF (ASX:VISM), will commence trading on the Australian Securities Exchange in the coming weeks, at management expense ratios of 0.47 per cent and 0.32 per cent respectively.

"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," said Robin Bowerman, Head of Corporate Affairs.

The Vanguard Global Infrastructure Index ETF (ASX:VBLD) offers exposure to around 146 listed infrastructure companies across a range of industries, including transportation, energy and communications, to investors, and at a management fee of 0.47 per cent, is the lowest cost of any global infrastructure ETF currently available. The fund is expected to be available to investors at the end of October.

The Vanguard MSCI International Small Companies Index ETF (ASX:VISM) is the first ETF listed in Australia to offer broadly diversified international small cap exposure to around 3910 holdings across 19 developed markets globally. VISM allows more investors to tap into in the long-term growth potential typical of the international small companies sector, and is expected to begin trading in November.

VISM and VBLD will be ETF share classes of existing wholesale funds that were established over 10 years ago, delivering investors the benefits of scale from products that currently manage over $801m and $338m in assets respectively. Both portfolios are unhedged.

"Since introducing ETFs nearly 10 years ago, each product we have added reflects Vanguard's focus on offering enduring funds that deliver on their promise for investors," Mr Bowerman said.

"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.

"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," he said.

The new funds join four other ETFs introduced by Vanguard Australia this year, two ESG and two active factor ETFs, bringing the total number of ETFs on offer to 28. With total ETF assets under management of $12.1 billion, Vanguard Australia is the largest ETF provider in Australia.

ETF product details:

Fund name Index ASX Code Management Expense Ratio Vanguard Global Infrastructure Index ETF Benchmarked to the FTSE Developed Core Infrastructure Index (with net dividends reinvested) in AUD VBLD 0.47% p.a. Vanguard MSCI International Small Companies Index ETF Benchmarked to MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in AUD VISM 0.32% p.a.

With more than AUD $6.8 trillion in assets under management as of 30 June 2018, including more than AUD $1.2 trillion in ETFs, Vanguard is one of the world's largest global investment management companies. In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 20 years.

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