Vanguard expands ETF product offering for investors
Melbourne, 11 October 2010 - Vanguard Investments Australia (Vanguard) today announced the expansion of its range of Exchange Traded Funds (ETFs) with the upcoming launch of the Vanguard® Australian Property Securities Index ETF.
The Vanguard Australian Property Securities Index ETF (VAP) will join the Vanguard® Australian Shares Index ETF (VAS), the Vanguard® All-World ex-US Shares Index ETF (VEU) and the Vanguard® US Total Market Shares Index ETF (VTS) offering investors another way to access Vanguard's indexing expertise. The ETF is expected to be quoted for trading on the ASX from 15 October 2010.
ETFs provide all of the diversification benefits and cost and tax efficiency of indexing coupled with the trading flexibility, liquidity and pricing transparency of shares.
The Vanguard Australian Property Securities Index ETF seeks to track the S&P/ASX 300 A-REIT Index, presenting low cost access to the broader Australian listed property market with the objective of capturing market returns before costs and tax.
"In an environment where costs are playing an increasingly important role investors are gravitating toward transparent investment options at minimal cost. Vanguard's new property ETF will list on the ASX AQUA platform as the lowest cost property ETF currently available for Australian investors at 0.34 per cent" said Robyn Laidlaw, Vanguard's ETF Product Manager.
"Vanguard's ETFs are flexible investment vehicles that continue to grow in popularity as investors, advisers and institutions realise their benefits," she said.
Joseph Brennan, Vanguard Chief Investment Officer, Asia Pacific said "We are committed to providing investors low cost building blocks for portfolio construction. VAP represents a new way to purchase a yield-oriented diversifier that we have successfully offered in traditional managed fund form for many years."
VAP is a share class of Vanguard's Australian Property Securities Index Fund. This fund was established in October 1998 and currently has over $2 billion in funds under management.
Vanguard is a global pioneer of indexing and leading manager of ETFs in the United States. Locally, Vanguard ETF assets recently surpassed $200 million in Australia.
About Vanguard ETFs:
- The Vanguard Australian Property Securities Index ETF (VAP) seeks to track the S&P/ASX 300 A-REIT index, offering investors a low-cost method of investing in a portfolio of Australian listed property securities across the retail, office, industrial, tourism, and infrastructure sectors.
- The Vanguard Australian Shares Index ETF (VAS) seeks to match the returns of S&P/ASX 300 index which comprises approximately 300 Australian equity securities and represents over 94 per cent of the value of all Australian-based companies and property trusts listed on the ASX.
- The Vanguard US Total Market Shares Index ETF (VTS) seeks to track the performance of the overall U.S. stock market using the benchmark MSCI US Broad Market Index which tracks approximately 3900 companies (or 99.5 per cent or more of the total market capitalisation).
- The Vanguard All World ex-US Shares Index ETF (VEU) offers investors approximately 2,200 stocks of companies located in 47 countries by tracking performance of the benchmark FTSE All-World ex-US Index. This index includes both the developed and emerging markets
Vanguard Investments Australia Ltd
ABN 72 072 881 086 AFSL 227263
Have you visited Vanguard's media centre at www.vanguard.com.au?
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS License 227263) is the product issuer of the Vanguard Australian Shares Index ETF and the Vanguard Australian Property Securities Index ETF.
Vanguard is the issuer of the Prospectus on behalf of the US listed exchange traded funds (ETFs) described in the Prospectuses. Vanguard has arranged for interests in the US ETFs to be made available to Australian investors via CHESS Depositary Interests that are quoted on the AQUA market of the Australian Securities Exchange (ASX).
Vanguard ETFs will only be issued to Authorised Participants, that is persons who have been authorised as trading participants under the ASX Operating Rules (Eligible Investors). Retail Investors can transact in Vanguard ETFs through a stockbroker or financial adviser on the secondary market.
We have not taken your circumstances into account when preparing the above information so it may not be applicable to your circumstances. You should consider your circumstances and our Product Disclosure Statement (PDS) or prospectus before making any investment decision. You can access our PDS or prospectus on our website or by calling us. This information was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.
Investors should consider the Prospectuses and PDSs in deciding whether to acquire Vanguard ETFs. Retail investors can only use the Prospectuses and PDSs for informational purposes only.
The funds or securities referred to in this document are not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds.
"FTSE®", "FT-SE®" and "Footsie®" are trade marks jointly owned by the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited under licence. "All-World" is a trademark of FTSE International Limited. The FTSE All-World ex-US Index is calculated by FTSE International Limited. FTSE International Limited does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading.
Standard & Poor's® and S&P® are registered trademarks of The McGraw-Hill Companies, Inc. ("McGraw-Hill"), and ASX® is a registered trademark of the Australian Stock Exchange Limited ("ASX"). These trademarks have been licensed for use by The Vanguard Group, Inc. Vanguard's ETF(s) is not sponsored, endorsed, sold or promoted by S&P, McGraw-Hill or ASX, and S&P, McGraw-Hill and ASX make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Vanguard ETF(s).
© 2010 Vanguard Investments Australia Ltd. All rights reserved. 'Vanguard', 'Vanguard Investments', 'LifeStrategy' and the ship logo are the trademarks of The Vanguard Group, Inc.
About Vanguard Investments Australia
Vanguard Investments Australia Ltd is a wholly owned subsidiary of The Vanguard Group, Inc. which is based in the US and currently manages over US$1.3 trillion (A$1.6 trillion*) for more than 23 million individual and institutional accounts. In Australia, Vanguard has established a reputation as a specialist indexer, managing over A$80* billion in index funds, for both institutional and retail investors and advisers. * As at 30 June 2010
Martha Wood, Vanguard Investments Australia
P: 03 8888 3870
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