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Vanguard expands ETF line-up offering low cost access to International Infrastructure and Global Small Companies

Vanguard Australia has today announced the upcoming launch of two new exchange traded funds (ETFs), offering investors exposure to International Small Companies and Global Listed Infrastructure, and further building out the firm's range of broadly diversified low-cost ETFs.

The Vanguard Global Infrastructure Index ETF (ASX:VBLD) and the Vanguard MSCI International Small Companies Index ETF (ASX:VISM), will commence trading on the Australian Securities Exchange in the coming weeks, at management expense ratios of 0.47 per cent and 0.32 per cent respectively.

The Vanguard Global Infrastructure Index ETF (ASX:VBLD) offers exposure to around 146 listed infrastructure companies across a range of industries, including transportation, energy and communications, to investors, and at a management fee of 0.47 per cent, is the lowest cost of any global infrastructure ETF currently available. The fund is expected to be available to investors at the end of October.

The Vanguard MSCI International Small Companies Index ETF (ASX:VISM) is the first ETF listed in Australia to offer broadly diversified international small cap exposure to around 3910 holdings across 19 developed markets globally. VISM allows more investors to tap into in the long-term growth potential typical of the international small companies sector, and is expected to begin trading in November.

 

I’m assuming Vanguard is only offering the “UNhedged” version of their Infrastructure fund?

 

@Anthony Brew I see VISM went live on Nov 12th

 

US News from a few days ago, hope they continue lowering expenses across the pond

Vanguard lowered the investment minimum for its Admiral shares from $10,000 down to $3,000 across 38 index funds

The Admiral class shares can be anywhere from 15% to 71% cheaper than the Investor class for some funds

Vanguard Lowers Index Fund Fees For Millions Of Retail Investors

Vanguard, one of the world’s largest investment management companies, with $5.3 trillion in global assets under management, announced today that they are lowering the investment minimums on 38 Admiral Shares index funds to $3,000.

Vanguard's move comes after Fidelity launched the first no-fee index funds earlier this year, so this is believed, by some industry experts, to be a direct response.

The changes take effect today and will lower the cost of investing for nearly 1.5 million clients, saving them an estimated $71 million in aggregate savings, according to the release.

Vanguard, a pioneer in the creation of index funds, offers two classes of many of its funds: Investor Shares and Admiral Shares. Admiral Shares have lower expense ratios but require a higher minimum investment.

Historically, the investment minimum for its low-cost Admiral Shares was $10,000, but for the selected 38 index funds, the minimum has been lowered to $3,000. This includes the wildly popular, and the industry’s largest equity index fund, the Vanguard Total Stock Market Index Fund (VTSAX), which has annual expense ratios of only 0.04%. The Investor Shares version of the same fund has a higher expense ratio of 0.14%.

 

This was an interesting read, Bogle was influenced by the works of Paul Samuelson

What You Can Learn From One of Warren Buffett’s Smartest Investors

 

Vale John Bogle ;

Jack Bogle, founder of Vanguard Group and creator of the index fund, dies at age 89

Truly a wise, and decent man.

 

A great man, and a life well lived. He truly left this world a better place.

 

How sad. He’s defied the odds for a couple of decades given his heart issues. But he never let health issues get in the way of living his life to the max and helping others. An incredibly inspirational man in all aspects of life.

 

Absolutely reminded of the Warren Buffet Quote "If a statue is ever erected to honour the person who has done the most for American investors, the hands- down choice should be Jack Bogle" very few people have done more for investors if any than Jack Bogle and like @Falcon says on top of all that a truly decent man by all accounts...

Warren Buffett says Jack Bogle did more for the individual investor than anyone he's ever known

 

I started reading "The little book of common sense investing" last night and just today dividends from all my vanguard holdings hit the account... Sad day

 

A great tribute to Saint Jack by Ben Carson -

What I Learned From Jack Bogle

 

So, after pouring over the Vanguard site, I am still a little uncertain which Australian domiciled ETF's are just pure index ETF's that do not adjust their allocations (e.g. VHY). Is there a clear list of Vanguard ETF's that are just standard index tracking only. I'm guessing VAS and VGS ,,,, any others?

 

This might help @DoggaPP
List of Australian exchange-traded funds - Wikipedia

 

Yep, thank you, I have seen this however it does not clearly indicate if the benchmark is aligned to a standard basic total market weighted index nor does it indicate if regular trading is required to achieve that benchmark (like in the case of VHY). Or is the word INDEX in the name to just be believed?

 

@Snowball welcome to the dark side

My Changing Thoughts on Index Funds in Australia



As always enjoy your articles

 

Haha! Thanks very much mate. The little guy bottom right corner must be me

 

Vanguard dividends all starting to come through

 

True but it still irks me the annual statements are yet to come. I love doing my tax returns and they are delaying that pleasure.

Also can someone convince a provider to establish and ETF for Penny Dreadfuls. I love the thrill of speculating and wish to increase the odds.

Gotta love the share market. Always runs on fear, greed, hope and frustration. Not necessarily in equal proportions or levels though.

 

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