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Rating:Vanguard ETFs Grow Globally Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 30, 2013

Vanguard ETFs Grow Globally

Reported by Tommy Fernandez

It's a big world out there, particularly for Vanguard [profile].

The low cost giant, which had global ETF assets of $281 billion as of June 30, 2013, reported that it has seen AUM growth in its ETFs, as well as expanded its product lineups and lowered fees, in a number of countries around the world. For example, the firm launched its first ETF in Hong Kong.

“Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of Vanguard index funds and ETFs. It is gratifying to see investors embracing the Vanguard way of investing as we seek to best position them for long-term financial success,” stated Jim Norris, managing director for Vanguard International.

Vanguard reported growth in the following countries during the first half of 2013:

United States
Flows continued into Vanguard’s lineup of 67 U.S- based ETFs, with investors plugging in $26 billion to the firm year-to-date through June 30, 2013.

Vanguard also introduced three low-cost fixed-income ETFs: Vanguard Total International Bond ETF (ticker: BNDX), Vanguard Emerging Markets Government Bond ETF (ticker: VWOB), and Vanguard Short-Term Inflation-Protected Securities ETF (ticker: VTIP).

In addition, Vanguard reported lower expense ratios on 56 ETFs over the past year, including reductions for some of its largest and most popular ETFs: the $55 billion Vanguard Emerging Markets ETF (from 20 basis points to 18 basis points) and the $31 billion Vanguard Total Stock Market ETF (6 basis points to 5 basis points).

Australia
Vanguard Investments Australia recently reached nearly $1 billion in ETF assets under management ($1 billion AUD). Vanguard Australia introduced its first three ETFs in 2009 and now offers a suite of nine ETFs. Among recent expense reductions, its all-world ex-US stock ETF dropped its management expense from 18 basis points to 15 basis points.

Canada
Vanguard Investments Canada had nearly $1 billion ($1 billion CAD) in ETF assets under management in June. Vanguard entered the Canadian marketplace in December 2011, listing six ETFs on the Toronto Stock Exchange. It added five more ETFs in November 2012.

Europe
Vanguard Asset Management had $1.4 billion (€1.09 billion) in ETF assets under management as of the end of June. The company launched four new physically backed, Irish-domiciled ETFs in May 2013 on the London Stock Exchange, complementing the five Irish-domiciled ETFs that it brought to the European market in 2012. Vanguard has also cross-listed seven of the ETFs on the NYSE Euronext Exchange in Amsterdam and Paris, and on the SIX Swiss Exchange in Switzerland.

Hong Kong
Vanguard Investments Hong Kong introduced its first ETF in May 2013 on the Hong Kong Stock Exchange. In Asia, Vanguard provides institutions and intermediaries with access to its global management capabilities through ETFs, separately managed accounts and mutual funds. The Hong Kong office serves as the Asian hub for the company, which established a site in Japan in 2000 and in Singapore in 2003.

Here is the press release:
Company Press Release

VANGUARD REPORTS STRONG GLOBAL ETF GROWTH; CONTINUES TO BROADEN ETF LINEUPS AND LOWER EXPENSES



Vanguard today reported that its exchange-traded funds (ETFs) continue to gain widespread investor acceptance in the United States and in other markets around the world. The third-largest worldwide provider of ETFs, with global ETF assets of $281 billion as of June 30, 2013, has expanded its suite of products in the United States, Australia, Canada, and Europe, and introduced its first ETF in Hong Kong.

“Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of Vanguard index funds and ETFs. It is gratifying to see investors embracing the Vanguard way of investing as we seek to best position them for long-term financial success,” said Jim Norris, managing director for Vanguard International.

Highlights for the first six months of 2013 include:

United States

Cash flow continues to be strong in Vanguard’s lineup of 67 U.S- based ETFs, with investors entrusting an ETF industry-leading $26 billion to the firm year-to-date through June 30, 2013 (source: Bloomberg).

Vanguard has recently broadened its product line in the United States by introducing three low-cost fixed-income ETFs: Vanguard Total International Bond ETF (ticker: BNDX), Vanguard Emerging Markets Government Bond ETF (ticker: VWOB), and Vanguard Short-Term Inflation-Protected Securities ETF (ticker: VTIP).

In addition, Vanguard reported lower expense ratios on 56 ETFs over the past year, including reductions for some of its largest and most popular ETFs: the $55 billion Vanguard Emerging Markets ETF (from 0.20% to 0.18%) and the $31 billion Vanguard Total Stock Market ETF (0.06% to 0.05%).

Australia

Vanguard Investments Australia recently reached nearly $1 billion in ETF assets under management ($1 billion AUD). Vanguard Australia introduced its first three ETFs in 2009 and now offers a suite of nine ETFs. Among recent expense reductions, its all-world ex-US stock ETF dropped its management expense from 0.18% to 0.15%.

Canada

Vanguard Investments Canada had nearly $1 billion ($1 billion CAD) in ETF assets under management in June. Vanguard entered the Canadian marketplace in December 2011, listing six ETFs on the Toronto Stock Exchange. It added five more ETFs in November 2012.

Europe

Vanguard Asset Management had $1.4 billion (€1.09 billion) in ETF assets under management as of the end of June. The company launched four new physically backed, Irish-domiciled ETFs in May 2013 on the London Stock Exchange, complementing the five Irish-domiciled ETFs that it brought to the European market in 2012. Vanguard has also cross-listed seven of the ETFs on the NYSE Euronext Exchange in Amsterdam and Paris, and on the SIX Swiss Exchange in Switzerland.

Hong Kong

Vanguard Investments Hong Kong introduced its first ETF in May 2013 on the Hong Kong Stock Exchange. In Asia, Vanguard provides institutions and intermediaries with access to its global management capabilities through ETFs, separately managed accounts and mutual funds. The Hong Kong office serves as the Asian hub for the company, which established a site in Japan in 2000 and in Singapore in 2003.

  About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is the world’s largest mutual fund company and one of the world’s largest investment management companies. Vanguard manages more than $2.5 trillion in global assets, including $281 billion in global ETF assets. The firm offers more than 160 funds to U.S. investors and more than 80 additional funds in non-U.S. markets. For more information, visit vanguard.com.        

# # #

All asset figures are as of June 30, 2013, unless otherwise stated.

For more information about Vanguard funds, visit vanguard.com or call 800-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in Creation Unit aggregations. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investments are subject to risk, including the possible loss of the money you invest. Bond funds are subject to interest rate risk, which is the chance bond prices overall will decline because of rising interest rates, and credit risk, which is the chance a bond issuer will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Diversification does not ensure a profit or protect against a loss. Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

Total International Bond ETF is subject to currency hedging risk, which is the chance that currency hedging transactions may not perfectly offset the fund's foreign currency exposures and may eliminate any chance for a fund to benefit from favorable fluctuations in those currencies.  The Fund will incur expenses to hedge its currency exposures.

The Emerging Markets Government Bond ETF seeks to track the performance of an index that measures the investment return of dollar-denominated bonds issued by governments of emerging market countries (including government agencies and government-owned corporations). Because the ETF invests only in U.S. dollar-denominated bonds, U.S.-based shareholders are not subject to currency risk. U.S. Pat. No. 6,879,964  B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646

Vanguard Marketing Corporation, Distributor.

© 2013 The Vanguard Group, Inc. All rights reserved.
 

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