Vanguard: Greater diversification through four new ETFs

Vanguard has launched four new Vanguard ETFs™ providing broad diversification across global developed equity markets, including the UK, developed Europe and North America. The new Ireland-domiciled UCITS ETFs began trading on London Stock Exchange as of 1 October 2014…..

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• The Vanguard FTSE Developed Europe ex UK UCITS ETF seeks to track the performance of the FTSE Developed Europe ex UK Index, a widely recognised market- capitalization weighted index of stock market performance of European developed countries, excluding the United Kingdom, that is comprised of the stocks of large and mid-cap companies in that region.
• The Vanguard FTSE Developed World UCITS ETF seeks to track the performance of the FTSE Developed Index, a widely recognized market-capitalisation weighted index of large and mid-cap sized companies in global developed markets.
• The Vanguard FTSE 250 UCITS ETF seeks to track the performance of the FTSE 250 Index, a widely recognised market-capitalisation weighted index of mid-cap sized companies of the United Kingdom.
• The Vanguard FTSE North America UCITS ETF seeks to track the performance of the FTSE North America Index, a market-capitalization weighted index of large and mid-cap sized companies in the United States and Canada.

All of the ETFs hold physical securities and track free-float adjusted, market-capitalisation-weighted indices.

Low costs

In keeping with Vanguard’s commitment to offering high-quality investments at low cost, the ongoing charges figures (OCFs) for our suite of UCITS ETFs range from 0.07% to 0.29%, compared with an industry average of 0.35%.¹ OCFs for the new ETFs range from 0.10% to 0.18%.

Building blocks for diversification

With investors increasingly recognising the benefits of international diversification, we have built a suite of low-cost ETFs targeting core asset allocation building blocks. The new ETFs extend this line-up to 13 funds, providing investors with even more flexibility to build globally diversified portfolios while minimising cost.

1 Source: ETFGI.

Source: ETFWorld.co.uk