The Vanguard Group , the third-largest global provider of ETFs, today reported that its exchange-traded funds continue to gain widespread investor acceptance across Europe and on a global basis.……
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With global ETF assets of USD 281 billion as of 30 June 2013, Vanguard has this year expanded its suite of products in Europe, the United States, Australia, and Canada and introduced its first ETF in Hong Kong.
Highlights for the first six months of 2013 include:
Europe
The first six months of 2013 included the successful expansion of Vanguard’s European ETF range to provide UK and European investors with increased access to key developed equity markets. In May, Vanguard launched four new physically backed, Irish-domiciled ETFs on the London Stock Exchange, complementing the five ETFs that it brought to the European market in 2012.
Vanguard’s expansion into continental Europe included listing seven of its ETFs on the SIX Swiss Exchange and on the NYSE Euronext Exchange in Amsterdam and Paris. All of the ETFs are listed in Swiss francs and euros, giving investors straightforward, local-currency access to Vanguard’s indexing expertise. These listings increase the Vanguard group’s presence in, and demonstrate its commitment to, the European market.
As of the end of June, Vanguard’s European ETFs held USD 1.4 billion in assets under management.
Tom Rampulla, managing director for Vanguard in Europe, commented:
“The swift growth of our European ETF business is testament both to increased investor appetite and the changing regulatory focus of the investment market.”
“Vanguard is committed to educating the market on the benefits ETFs present as core building blocks of low-cost diversified portfolios. Like our traditional mutual funds, our physically-backed ETFs offer investors a simple, low-cost way to gain broadly diversified market exposure and our business is growing as investors increasingly embrace high quality and transparent funds.”
United States
Cash flow continues to be strong in Vanguard’s line-up of 67 U.S- based ETFs, with investors entrusting USD 26 billion year-to-date through June 30, 2013, which leads the U.S. ETF industry (Source: Bloomberg).
Vanguard has also recently broadened its product line-up in the U.S. by introducing three low-cost fixed-income ETFs.
In addition to introducing new bond products, Vanguard reported lower expense ratios on 56 ETFs over the past year, including reductions on some of its largest and most popular ETFs.
Australia
Vanguard Investments Australia has reached nearly USD 1 billion in ETF assets under management. Vanguard Australia introduced its first three ETFs in 2009 and now offers a suite of nine funds.
Canada
Vanguard Investments Canada had nearly USD 1 billion dollars in ETF assets under management in late June. Vanguard entered the Canadian marketplace in December 2011, listing six ETFs on the Toronto Stock Exchange and adding five more ETFs in November 2012.
Hong Kong
Vanguard Investments Hong Kong introduced its first ETF in May on the Hong Kong stock exchange. In Asia, Vanguard provides institutions and intermediaries with access to its global management capabilities through ETFs, separately managed accounts and mutual funds. The Hong Kong office also serves as the Asian hub for the company, which established a site in Japan in 2000 and in Singapore in 2003.
Jim Norris, managing director for Vanguard International, said:
“Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of index funds and ETFs. It is gratifying to see investors embracing the Vanguard way of investing as we seek to best position them for long-term financial success.”
All asset figures are as of June 30, 2013.
Source: ETFWorld.co.uk
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