Vanguard unveils multi-asset “LifeStrategy” UCITS ETFs

Dec 11th, 2020 | By | Category: Alternatives / Multi-Asset

Vanguard has launched four multi-asset “LifeStrategy” ETFs on Xetra and Borsa Italiana.

Vanguard unveils multi-asset "LifeStrategy" UCITS ETFs

Matthew Piro, Head of Product, Vanguard Europe.

Structured as ETFs of ETFs, the funds invest in underlying Vanguard equity and fixed income UCITS ETFs according to predetermined asset allocations.

The range aims to deliver value to investors by offering convenient access to ready-made, low-cost, broadly diversified multi-asset portfolios with exposure to equities and investment-grade bonds issued in developed and emerging markets across the globe.

The funds are actively managed in the sense that they are not managed with reference to a specific benchmark index and in that Vanguard has effective discretion over portfolio composition.

However, the portfolios are managed in line with static, pre-determined asset allocations and seek to achieve their target exposure through a globally heterogeneous portfolio of highly diversified passive ETFs. Non-systematic risk will be diversified away, and the funds will not intentionally reflect any geographic or sectoral bias.

The range is aimed at self-directed investors to act as a core part of their portfolio, or as part of a monthly savings plan. Additionally, the funds may serve as off-the-shelf solutions for advisers wishing to spend more time with their clients on activities such as tax planning as opposed to day-to-day asset allocation and portfolio management.

The range comprises four funds with varying equity/fixed income asset allocations: 20%/80%, 40%/60%, 60%/40%, and 80%/20%. Each fund carries an Ongoing Charges Figure (OCF) of 0.25% and is available in both accumulating and distributing share classes. The base currency of the funds and all share classes is euros.

The funds are managed by Vanguard’s Equity Index Group, which oversees more than $4.2 trillion in assets across the globe.

Commenting on the launch, Matthew Piro, Head of Product, Vanguard Europe, said: “Vanguard has a long history of offering multi-asset products, with the first LifeStrategy products available to investors from 1994 with the total worldwide assets in the range standing at $73 billion.

“As an all-in-one solution, the products can be used as a core holding by those investors who want to maintain a static asset allocation based on their individual risk tolerance and offer easy access to a large number of both fixed income and equity holdings at a low-cost. This product suite is suited not only for the end investor but also for the adviser, who could consider this product suite as a core holding for their clients.”

The funds:

Vanguard LifeStrategy 20% Equity UCITS ETF (EUR) Accumulating (V20A GY, VNGA20 IM)
Vanguard LifeStrategy 20% Equity UCITS ETF (EUR) Distributing (V20D GY, VNGD20 IM))

Vanguard LifeStrategy 40% Equity UCITS ETF (EUR) Accumulating (V40A GY, VNGA40 IM)

Vanguard LifeStrategy 40% Equity UCITS ETF (EUR) Distributing (V40D GY, VNGD40 IM)

Vanguard LifeStrategy 60% Equity UCITS ETF (EUR) Accumulating (V60A GY, VNGA60 IM)

Vanguard LifeStrategy 60% Equity UCITS ETF (EUR) Distributing (V60D GY, VNGD60 IM)

Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Accumulating (V80A GY, VNGA80 IM)

Vanguard LifeStrategy 80% Equity UCITS ETF (EUR) Distributing (V80D GY, VNGD80 IM)

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2 Comments to “Vanguard unveils multi-asset “LifeStrategy” UCITS ETFs”

  1. BJK says:

    How do these differ from current Vanguard Lifestrategy funds?

    • Richard says:

      The current Lifestrategy funds are overweight in the UK market whereas these “will not intentionally reflect any geographic or sectoral bias.” It sounds as it they will be very similar to what one can obtain with a mixture of VWRL and Vanguard bond funds.

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