Vanguard expands ETF range on LSE

Oct 1st, 2014 | By | Category: Equities

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Vanguard, one of the world’s largest providers of exchange-traded funds, has launched four new ETFs on the London Stock Exchange.

Vanguard expands ETF range on LSE

Ken Volpert, head of investments for Vanguard in Europe.

The new ETFs provide diversified exposure to UK, developed Europe ex-UK, developed world and North American equity markets and take the total number of Vanguard ETFs on the LSE to 13.

Since unveiling its range in May 2012, the provider now has more than $10 billion in European ETF assets under management.

The new ETFs track the performance of broadly diversified FTSE indices and give UK investors further tools to construct low-cost equity portfolios with greater international diversification.

The ongoing costs for Vanguard’s European ETF suite range from 0.07% to 0.29% compared to an industry average of 0.35%.

Commenting on the launch, Ken Volpert, head of investments for Vanguard in Europe, said: “Today’s launch represents Vanguard’s commitment to offering UK investors a complete, broadly diversified ETF and mutual fund line-up in order to construct globally diversified portfolios at an extremely low-cost.”

He added: “ETFs are coming of age in Europe as both retail and institutional investors value their low costs, liquidity and transparency.”

The new funds are as follows:

Vanguard FTSE 250 UCITS ETF (VMID)
The fund holds all, or nearly all, of the 250 mid-cap UK stocks that make up the FTSE 250 Index. It is traded in GBP and has annual ongoing expenses of 0.10%

Vanguard FTSE North America UCITS ETF (VNRT / VDNR)
The fund uses an index-sampling strategy to track the FTSE North America Index, which covers large- and mid-cap stocks of the United States and Canada. It has annual ongoing expenses of 0.10% and is available in both GBP and USD trading currencies.

Vanguard FTSE Developed Europe ex-UK UCITS ETF (VERX)
The fund tracks the FTSE Developed Europe ex-UK  Index and holds large- and mid-cap stocks from 15 developed continental European markets. It is traded in GBP and has annual ongoing expenses of 0.12%

Vanguard FTSE Developed World UCITS ETF (VEVE / VDEV)
The fund uses an index-sampling strategy to track the FTSE Developed World  Index, an index comprised of large and mid-size companies in 25 developed markets around the world. It has annual ongoing expenses of 0.18% and is available in both GBP and USD trading currencies.

All of the ETFs hold physical securities and track free-float adjusted, market-capitalisation-weighted indices.

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