Global investment management company Vanguard will launch four new exchange traded funds (ETFs) in the fourth quarter of this year in a bid to give Australian investors “more specific options” for diversifying their portfolios across international markets.
With an eye on international equities, the new ETFs will offer investors broadly diversified exposure to international fixed income — including government bonds and credit securities — as well as the addition of both Asian and European equities.
According to Vanguard head of market strategy and communications, Robin Bowerman, the new Asian and European equities ETFs will offer investors “greater control” and flexibility to tailor regional sharemarket exposures within their portfolio.
“Since launching our first ETFs in 2009, Vanguard has focused on building out our range to cover all the major asset classes,” Bowerman said.
“The addition of these four new products marks a significant growth in Vanguard’s product offering and the continuing evolution of the ETF market in Australia.”
The four new funds will be Vanguard’s International Fixed Interest Index ETF (VIF), the International Credit Securities Index ETF (VCF), the FTSE Europe Shares ETF and the FTSE Asia ex Japan Shares Index ETF, with both VIF and VCF hedged.
Currently, the funds are subject to will be quoted for trading on the Australian Securities Exchange (ASX) by the end of the year and will bring the total number of Vanguard Australia ETFs to 16.
Bowerman said the addition of these ETFs will help broaden the portfolio toolkit available to Australian investors via the ASX when setting the strategic asset allocation that best suits their personal risk tolerance and investment objectives.
“There are currently no international fixed income ETFs trading on the ASX, so [by using ETFs the] launch of VIF and VCF will allow Australian investors to create portfolios that are truly diversified across and within asset classes,” Bowerman said.
