Vanguard is continuing to see strong adoption of its exchange-traded funds (ETFs) in the United States, Europe, Canada, Australia, Asia, and elsewhere around the world.
The firm has reported global ETF cash flow of more than USD75 billion at the end of November and total global ETF assets of more than USD442 billion.
“Vanguard’s value proposition is not confined by geographic boundaries,” says Vanguard Chief Investment Officer Tim Buckley. “It’s gratifying to see our low-cost, high-quality approach to investing resonating so strongly with investors around the world. We will continue to seek to drive down the cost of investing for the clients whom we serve around the world.”
Cash flow continues to be strong in Vanguard’s lineup of 67 US-based ETFs, with investors entrusting USD63.5 billion to the firm year-to-date through November 2014. (Vanguard had USD55 billion in cash flow into its US-based ETFs in calendar-year 2013.) (source: Bloomberg). Total US Vanguard ETF assets closed November with USD422.5 billion.
Additionally, Vanguard reported lower expense ratios on 22 ETFs over the past year, including reductions for some of its largest and most popular ETFs.
Vanguard in Europe was second out of more than 50 European ETF providers in terms of cash flow year-to-date through November 2014. Vanguard finished the month with USD14.2 billion (EUR11.4 billion) in ETF assets under management.
The company launched four new equity ETFs in October 2014 and now offers 13 ETFs in the United Kingdom and Europe. The ongoing costs for Vanguard’s European ETF suite now range from 0.07% to 0.29%, compared with an industry average of 0.35% (Source: ETFGI). The firm also lowered charges on 25 U.K. and Irish-domiciled index mutual funds and ETFs during the year.
Vanguard Australia had more than USD2 billion (AUD2.5 billion) in ETF assets under management through November. The firm recently launched two new international ETFs and now offers 12 ETFs to Australian investors and advisers. Vanguard Australia was awarded Best ETF Provider at both the Money Management/Lonsec Fund Manager of the Year Awards and Money Magazine’s Best of the Best awards.
Vanguard Investments Canada Inc. had more than USD3 billion (CAD3.5 billion) in ETF assets under management though November. It concluded its third year of operations in Canada, during which the firm launched five new exchange-traded funds (ETFs) and lowered management fees on more than half of its current lineup of 21 ETFs. Additionally, in November of this year, Vanguard Investments Canada Inc. was recognised as Morningstar’s ETF Provider of the Year-Canada for the second straight year.
Vanguard Investments Hong Kong expanded its product offering in June with three new Hong Kong-domiciled ETFs. The firm introduced its first ETF in May 2013 and finished November with USD55 million in ETF assets (HKD426 million). Each of Vanguard’s Hong Kong-domiciled ETFs has the lowest expense ratio in the market for its category, with total expense ratios ranging from 0.25% to 0.45%. 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.