Investment

Exchange Traded Funds (ETFs)

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What is an ETF?

An Exchange Traded Fund (ETF) is a diversified portfolio of securities constructed using an index approach that can be readily traded on the Australian Securities Exchange (ASX).

Investors in Vanguard ETFs own a share of a portfolio of listed securities, indexed by Vanguard.  As an index manager Vanguard’s aim is to deliver the index return, before fees, by building investment portfolios using similar assets and weightings as the benchmark index - we don’t try to pick winners from losers. This means an ETF’s returns, before costs, should closely match the index it tracks, just like a traditional index managed fund.  

Vanguard ETFs deliver two sets of benefits to investors - the trading speed and flexibility of shares merged with the low cost, diversification of index funds. This has made ETFs one of the fastest growing investment solutions in the world today, with hundreds of billions of dollars now invested globally using ETFs.


Benefits of Vanguard ETFs

Vanguard ETFs offer the following benefits:

  • Index investing with the trading and pricing flexibility of individual shares
  • Ability to buy and sell throughout the trading day
  • Option to use in a margin lending portfolio
  • A unique product structure that utilises our existing index funds to offer a range of advantages including a proven track record, lower costs and tighter tracking because of the funds size.

More on ETFs

Exchange Traded Funds (ETFs) at a Glance*

Australian Shares  
  ASX Code Benchmark Local / International ETF Fee
(per annum)		 Distribution Schedule Lonsec
Rating		 Product Profile
Vanguard Australian Shares Index ETF VAS S&P/ ASX 300 Index Local 0.27% Quarterly Approved
International Shares  
  ASX Code Benchmark Local / International ETF Fee
(per annum)		 Distribution Schedule Lonsec
Rating		 Product Profile
Vanguard US Total Market Shares Index ETF VTS MSCI US Broad Market Index International 0.09% Quarterly Approved  
Vanguard All-World ex-US Shares Index ETF VEU FTSE All-World ex-US Index International 0.25% Annually (December) Approved

* Information correct as of Apr 15 2009.

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Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken your circumstances into account when preparing the above information so it may not be applicable to your circumstances. You should consider your circumstances and our Product Disclosure Statement (PDS) before making any investment decision. You can access our PDS on our website or by calling us. This information was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

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