Vanguard continues roll-out of accumulating share classes

Sep 30th, 2019 | By | Category: Equities

THEMATIC INVESTING - WEDNESDAY 29TH JUNE 2022 (08:15-11:30) - THE BILTMORE MAYFAIR, LONDON Please join us for our annual thematic investing breakfast briefing with participation from MSCI, WisdomTree, KraneShares, ETC Group / HANetf, and Global X. Please register now if you would like to attend.


Vanguard is continuing the roll-out of accumulating share classes on its ETF range with the launch of new capitalising trading lines for five of its European listed ETFs.

Vanguard rolls out accumulating share classes for regional equity ETFs

Vanguard has rolled out accumulating share classes on more equity ETFs (file image).

Four of the funds provide broad beta exposure to large- and mid-cap stocks from the Japanese, developed Asia Pacific ex-Japan, developed global, and emerging market equity universes.

The fifth targets higher dividend-paying stocks from developed and emerging markets.

The ETFs collectively house over $5.2 billion in assets under management and are all linked to FTSE Russell indices.

The new share classes have been listed on London Stock Exchange in US dollars and pound sterling, and on Deutsche Börse Xetra in euros.

Japan

The Vanguard FTSE Japan UCITS ETF tracks the FTSE Japan Index.

The index covers over 500 Japanese equities and is primarily exposed to the consumer goods (23.8%), industrials (22.2%), financials (13.1%), consumer services (11.8%), and healthcare (9.2%) sectors. The largest constituent is Toyota at 4.6%.

The fund comes with an expense ratio of 0.19% and has over $1.8bn in AUM. The tickers for the new accumulating share classes are as follows VJPA LN (USD), VJPB LN (GBP) and VJPA GY (EUR).

Developed Asia Pacific ex-Japan

The Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF tracks the FTSE Developed Asia Pacific ex Japan Index, a reference for the equity market performance of Australia (42.8%), South Korea (25.4%), Hong Kong (22.4%), Singapore (7.8%), and New Zealand (1.8%).

The index covers over 370 stocks and is primarily exposed to the banking (17.8%), technology (11.8%), real estate (9.8%), industrial goods & services (8.4%), and basic resources (7.3%) sectors. The largest constituents are Samsung (7.1%), AIA Group (4.9%), and Commonwealth Bank of Australia (3.9%).

The fund comes with an expense ratio of 0.25% and has $380 million in AUM. The tickers for the new accumulating share classes are VAPU LN (USD), VDPG LN (GBP) and VGEK GY (EUR).

Developed Global

The Vanguard FTSE Developed World UCITS ETF tracks the FTSE Developed Index, a reference for the performance across 25 developed equity markets including the US (61.3%), Japan (8.6%), the UK (5.6%), France (3.6%), and Switzerland (3.2%).

Covering more than 2,100 constituents, the index is primarily exposed to the technology (16.3%), industrial goods & services (11.6%), healthcare (10.9%), banking (8.6%), and retail (7.0%) sectors. The largest constituent is Microsoft at 2.5%.

The fund comes with an expense ratio of 0.18% and has $330 million in AUM. The new accumulating share classes have been listed on LSE, in dollars (VVHE LN) and sterling VHVG LN.

Emerging Markets

The Vanguard FTSE Emerging Markets UCITS ETF tracks the FTSE Emerging Index, a reference for the performance of 22 emerging market countries including China (33.8%), Taiwan (12.7%), India (11.0%), Brazil (9.0%), and South Africa (6.8%).

Covering more than 1,700 constituents, the index is primarily exposed to the banking (18.0%), technology (17.6%), retail (10.0%), oil & gas (8.6%), and industrial goods & services (5.4%) sectors. The largest constituents are Tencent (5.1%), Alibaba (4.6%), and Taiwan Semiconductor (4.3%).

The fund comes with an expense ratio of 0.25% and has over $1.9bn in AUM. The tickers for the new accumulating share classes are VFEA LN (USD), VFEG LN (GBP) and VFEA GY (EUR).

Global Dividends

The Vanguard FTSE All-World High Dividend Yield UCITS ETF tracks the FTSE All-World High Dividend Yield Index.

The index ranks the constituents of the FTSE All-World Index by 12-month forecasted dividend yield and selects the highest-ranking stocks that make up 50% of the parent universe’s total market capitalization. Eligible constituents are weighted by float-adjusted market capitalization.

The index has a dividend yield of 4.3% and is primarily exposed to the banking (17.4%), healthcare (10.4%), oil & gas (10.0%), and utilities sectors (6.9%). The largest constituent is JP Morgan at 1.8%.

The fund comes with an expense ratio of 0.29% and has over $800m in AUM. The accumulating share classes have been listed on LSE in USD (VHYA LN) and GBP (VWRP LN).

Earlier this year, Vanguard launched accumulating share classes for its global (FTSE All-World), US large-cap (S&P 500), North American (FTSE North America), UK large-cap (FTSE 100), UK mid-cap (FTSE 250), and European developed (FTSE Developed Europe) equity ETFs.

Tags: , , , , , , , , , , ,

Leave a Comment