Vanguard launches 100% equities and income-generating diversified ETFs

By Vanguard

ETFs

Investors now have access to a broader range of ready-made diversified ETF portfolios.

Vanguard was one of the earliest investment management companies to bring cost-effective, ready-made, multi-asset investment solutions to the Australian market when it launched four diversified managed funds – Conservative, Balanced, Growth and High Growth – in 2002.

In 2017, we expanded the Diversified Funds range with the introduction of four diversified exchange traded funds (ETFs) – Conservative (ASX: VDCO), Balanced (ASX: VDBA), Growth (ASX: VDGR), and High Growth (ASX: VDHG).

We’ve now expanded our popular, ready-made diversified funds range with the launch of two new diversified ETFs on the Australian Securities Exchange.

The Vanguard Diversified All Growth Index ETF (ASX: VDAL) is an all-equities diversified ETF that invests 100% in growth assets and is designed for Australian investors with a very high tolerance for risk who are seeking long-term capital growth.

It offers exposure to more than 6,000 equities listed across over 50 global markets, including Australian equities, global equities, emerging markets and global small caps, all in a single trade.

VDAL has a management fee of 27 basis points per annum.

VDAL holds units in underlying ETFs/Funds, including but not limited to:

Vanguard Australian Shares Index ETF (VAS)
Vanguard MSCI Index International Shares ETF (VGS)
Vanguard MSCI Index International Shares (Hedged) ETF (VGAD)
Vanguard Emerging Markets Shares Index Fund (VEMSIF)

The Vanguard Diversified Income ETF (ASX: VDIF) has been designed for Australian investors seeking income with some capital growth potential, without sacrificing the benefits of diversification, sets a new standard in the Australian market for income-generating ETF solutions.

It provides exposure to over 12,000 securities via investments including investment grade fixed income and corporate bond strategies, and high dividend yield equities. VDIF targets a 40% allocation to defensive asset classes and a 60% allocation to growth asset classes.

VDIF has a management fee of 32 basis points per annum.

VDIF holds units in underlying ETFs/Funds, including but not limited to:

Vanguard Australian Shares High Yield ETF (VHY)
Vanguard Australian Property Securities Index ETF (VAP)
Vanguard FTSE All World High Dividend Yield ETF (VHYD)
Vanguard MSCI Index International Shares (Hedged) ETF (VGAD)
Vanguard International Property Securities Index (Hedged) (VIPIFH)
Vanguard International Fixed Interest Index (Hedged) ETF (VIF)
Vanguard International Credit Securities (Hedged) ETF (VCF)
Vanguard Australian Corporate Fixed Interest Index ETF (VACF)
Vanguard Australian Government Bond Index ETF (VGB)

Our new all growth and income-focused ETFs are designed with the diverse needs of Australian investors in mind.

“More than 50 million investors worldwide trust Vanguard for our low-cost, high-quality investment solutions, backed by 50 years of global experience including nearly 30 years serving Australian investors. We acutely understand that investors have different needs at different times, depending on their financial goals and individual circumstances,” said Matthew Cho, Vanguard’s Head of Multi-Asset Solutions.

“And with more Australian dollars invested with Vanguard than any ETF provider, we recognise the critical role ETFs have played over the last 16 years in providing Australians with easy, accessible and flexible investment options to build and protect their wealth.”

Mr. Cho said Vanguard’s ready-made diversified ETFs reflect Vanguard’s best thinking of its global investment strategy team to deliver low cost, transparent diversified investment portfolios that meet the primary portfolio construction needs of investors across a spectrum of risk-return profiles.

“Like our existing ready-made diversified fund options, our new all growth and income-focused ETFs are designed with the diverse needs of Australian investors in mind. For example, a younger investor in an accumulation stage and focused on building their wealth, or a retiree looking for a higher level of income.

“Our diversified ETFs are grounded in our proven investment philosophy which emphasises low costs and broad diversification. We bring this philosophy to life through strategic asset allocation – that is we carefully design the weights of the various asset classes to be robust in various market conditions. Our professional portfolio managers then regularly rebalance the ETFs to ensure they stay aligned with their stated risk profiles and investment objectives.

“Vanguard’s ready-made diversified ETFs offer investors a simple, smart, low-cost solution, where with just one trade, investors can hold a broad investment portfolio containing thousands of securities across multiple asset classes, sectors and countries to spread their holdings and grow and protect their wealth against the impacts of market volatility,” said Mr. Cho.

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