Vanguard’s exchange-traded funds continue to gain widespread investor acceptance in the US and in other markets around the world.
The third-largest worldwide provider of ETFs, with global ETF assets of USD281bn as of 30 June 2013, has expanded its suite of products in the US, Australia, Canada and Europe, and introduced its first ETF in Hong Kong.
“Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of Vanguard 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,” says Jim Norris (pictured), managing director for Vanguard International.
Cash flow continues to be strong in Vanguard’s line-up of 67 US-based ETFs, with investors entrusting an ETF industry-leading USD26bn to the firm year-to-date through 30 June 2013 (source: Bloomberg).
Vanguard has recently broadened its product line in the US by introducing three low-cost fixed-income ETFs: Vanguard Total International Bond ETF, Vanguard Emerging Markets Government Bond ETF and Vanguard Short-Term Inflation-Protected Securities ETF.
In addition, Vanguard reported lower expense ratios on 56 ETFs over the past year, including reductions for some of its largest and most popular ETFs: the USD55bn Vanguard Emerging Markets ETF (from 0.20 per cent to 0.18 per cent) and the USD31bn Vanguard Total Stock Market ETF (0.06 per cent to 0.05 per cent).
Vanguard Investments Australia recently reached nearly USD1bn in ETF assets under management. Vanguard Australia introduced its first three ETFs in 2009 and now offers a suite of nine ETFs. Among recent expense reductions, its all-world ex-US stock ETF dropped its management expense from 0.18 per cent to 0.15 per cent.
Vanguard Investments Canada had nearly USD1bn in ETF assets under management in June. Vanguard entered the Canadian marketplace in December 2011, listing six ETFs on the Toronto Stock Exchange. It added five more ETFs in November 2012.
Vanguard Asset Management had USD1.4bn (EUR1.09bn) in ETF assets under management as of the end of June. The company launched four new physically backed, Irish-domiciled ETFs in May 2013 on the London Stock Exchange, complementing the five Irish-domiciled ETFs that it brought to the European market in 2012. Vanguard has also cross-listed seven of the ETFs on the NYSE Euronext Exchange in Amsterdam and Paris, and on the SIX Swiss Exchange in Switzerland.
Vanguard Investments Hong Kong introduced its first ETF in May 2013 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 serves as the Asian hub for the company, which established a site in Japan in 2000 and in Singapore in 2003.
