Vanguard has unveiled two new diversified exchange-traded funds (ETFs) on the ASX targeting the next generation of Australian investors.
The Vanguard Diversified All Growth Index ETF (VDAL) and the Vanguard Diversified Income ETF (VDIF) are available on the Vanguard Personal Investor platform and will be progressively rolled out to third party platforms, the firm stated.
Looking at the VDAL, the all-equities diversified ETF invests 100 per cent in growth assets and is designed for Australian investors with a high risk tolerance who are seeking long-term capital growth.
The investment vehicle provides exposure to more than 6,000 equities listed over 50 global markets, such as Australian equities, global equities, emerging markets and global small caps.
Meanwhile, the VDIF is constructed for Australian investors who are looking for regular income with some capital growth potential, without giving up the benefits of diversification.
The ETF offers exposure to more than 12,000 securities through access to underlying funds that invest in investment grade fixed income and corporate bond strategies, as well as high dividend yield equities. It targets a 40 per cent allocation to defensive asset classes and 60 per cent allocation to growth asset classes, according to Vanguard.
VDAL has a management fee of 27 basis points per annum, while VDIF has an annual management fee of 32 basis points.
“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,” remarked Matthew Cho, Vanguard’s head of multi-asset solutions.
Like its existing ready-made diversified fund options, Vanguard’s new all-growth and income-focused ETFs are designed with the diverse needs of Australian investors in mind, Cho added.
“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,” he said.
“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.”
The two new products bring Vanguard’s overall ready-made diversified ETF range to six. This includes the existing Vanguard Diversified Conservative Index ETF (VDCO), the Vanguard Diversified Balanced Index ETF (VDBA), the Vanguard Diversified Growth Index ETF (VDGR), and the Vanguard Diversified High Growth Index ETF (VDHG).
As of 31 January 2025, Vanguard has more than $16.6 trillion in assets under management, including some $5.3 trillion in ETFs.
