Vanguard’s Australian Government Bond Index ETF began trading on the Australian Securities Exchange (ASX). …
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Fund Name | ASX Code | Fund Objective | Fee p.a. |
Vanguard® Australian Government Bond Index ETF | VGB | Seeks to match the return (income and capital appreciation) of the UBS Government Bond Index1 before taking into account fund fees, expenses and tax. | 0.20 per cent |
ETFs continue to gather pace in Australia. The latest data from the ASX show total market capitalisation of ETFs in Australia is $5.4 billion (including ETCs).
Commenting on the new ETF listing, Robyn Laidlaw, Vanguard’s Head of Product Management and Development, said, “Fixed income is an important diversifier to a portfolio overweight in equities or cash.”
“Accessing individual bonds using the traditional over-the-counter method can be difficult for individual investors and can involve large investment outlays,” she said.
“At a cost of just 0.20 per cent per annum, this new ETF provides a very cost-effective way to incorporate a diversified portfolio of bonds which investors can trade just like shares.
Vanguard also this month launched a new wholesale inflation-linked bond fund, the Vanguard® Australian Inflation-Linked Bond Index Fund, and announced a lowered total annual fund operating expense for its Vanguard® US Total Market Shares Index ETF (VTS), which has decreased from 0.07 to 0.06 per cent per annum.
Source: ETFWorld – ASX
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