Vanguard Australia has announced plans to launch a new exchange traded fund (ETF) product – the Vanguard FTSE Emerging Markets Shares Exchange Traded Fund, with Australian Securities Exchange (ASX) ticker code VGE.
The company announced this week that, subject to regulatory approvals, it anticipated the product would be quoted for trading on the ASX by mid-November .
At the same time, it claimed that with an expense ratio of 48 basis points, the product was set to be the lowest-cost emerging markets ETF currently quoted (based on management fee) on the ASX.
It said the new ETF offered access to some 928 listed stocks from 22 emerging economies in Asia, South America, Europe, Africa and the Middle East, and would track the return of the FTSE Emerging Index.
Commenting on the move, Vanguard's head of product and marketing, Robyn Laidlaw, said that for investors looking to obtain exposure to emerging markets, he believed the product would deliver comprehensive exposure at a low cost.
The company said VGE was Vanguard's first Australia-domiciled international equities ETF with the benefits of the local fund structure, including the flexibility to elect dividend reinvestment, simplified withholding tax administration and no requirement for investors to complete the US W8-BEN tax form.
"It's an optimal solution to access global emerging markets while keeping control of your reporting and investment management onshore," Laidlaw said.
