One way to access the benefits of the property sector, without all the hassles, is through a listed property trust managed fund. Property securities combine growth and income asset attributes, traditionally providing capital growth potential with lower risk than shares.
Vanguard's Property Securities Index Fund provides a low cost way to invest in a portfolio of around 36 listed property securities across the retail, office, industrial, tourism and infrastructure sectors.
Who it may suit
- long-term investors (usually five years plus)
- investors seeking a tax-effective income stream
- retirees or those nearing retirement
- investors seeking long-term capital growth
- self managed super funds
- investors drawing down an allocated pension
Objectives
To match the total return of the S&P/ASX 300 A-REIT Index before taking into account fund fees and expenses.
Benefits
| Diversification |
|
| Tax-effective income stream and capital growth potential |
|
| Potential for better after-tax returns |
|
| Low fees |
|
| Flexibility |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$500,000
|
| Additional investments |
Nil
|
| Balance |
Nil
|
| Switch/withdrawal |
Nil
|
| Buy/sell spread | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.20%
|
| Management costs | |
| Management costs |
0.34% p.a.
|
Risk/return profile
At Vanguard, we believe it's just as important to understand the risks and costs of investing, as it is to know about the rewards.
Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard Property Securities Index Fund based on historical data. It's important to remember that past performance is no guarantee of future performance and the risk/return profile of each fund may vary from year to year.
