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Vanguard to offer exchange traded funds in Australia

Discussion in 'Exchange Traded Funds (ETF)' started by austing, 19th Mar, 2009.

  1. austing

    austing Well-Known Member

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    I had a gut feeling this was coming because Vanguard head of retail Robin Bowerman was recently highlighting the advantages of ETFs. In the past he was always quick to highlight the advantages of Vanguard index funds over SPDR ETFs! Anyhow this could be great for us passive investors as there is very limited choice in Australia at the moment. I would like to see some Hedged international ETFs available in Australia.

    "Vanguard to offer exchange traded funds March 19, 2009 - 2:14PM

    Specialist funds manager Vanguard Investments Australia Ltd says it will add exchange-traded funds (ETFs) to its list of investment products.
    ETFs are managed funds that are bought, sold and traded like a share on the Australian securities exchange (ASX) and like unlisted index funds they track a market index, Vanguard says.

    Vanguard said that while ETF take-up in Australia had been muted compared to other markets, it decided to enter the market because it believed it would become a growth market in the longer term.

    It said it planned to offer Australian investors the option of buying indexed-based investments through managed funds or ETFs.
    "Priced at the net asset value of the underlying assets, investors will be able to buy and sell Vanguard ETFs at prices determined throughout the trading day," it said.

    Vanguard Investments Australia is a subsidiary of The Vanguard Group, which is based in the US and manages more than $US1 trillion ($A1.47 trillion) for more than 23 million individual and institutional accounts.

    In Australia, Vanguard said it managed $A60 billion in index funds as at December 31, 2008 both institutional and retail investors.
    Vanguard said it would provide further details of its Australian ETF product offering once regulatory and legal approvals are finalised."

    Cheers - Gordon
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    This will be interesting - I would love to see someone like Vanguard introduce a new range of ETFs covering markets or sectors not currently serviced by existing products. More choice in this area can only help ETFs grow in recognition and acceptance.
     
  3. austing

    austing Well-Known Member

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    Hi Sim,

    I agree.

    I have become a great fan of ETFs and like you hope that Vanguard will offer additional choice rather than mostly dupicate existing ETFs here.

    Vanguard are very strong in the ETF market overseas so they certainly have the relevant experience and size behind them to so something serious in this area. The ETF market is huge overseas and it seems that albeit belatedly they are finally starting to become more popular here in Australia. Vanguard seem confident that ETFs will become much more popular going forward and rest assured they would have done plenty of market research.

    Anyhow I'm quite excited about this and hope that what products will be offered won't be dissapointing or come with a greedy MER.

    Cheers - Gordon