Media Releases
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The Vanguard / Investment Trends Self Managed Super Funds (SMSF) Report*, released today, tells a clear story of a lack of confidence in future market directions within the self managed fund sector, according to Robin Bowerman, Head of Corporate Affairs and Market Development from Vanguard Investments.
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Three new Vanguard Exchange Traded Funds (ETFs) will this morning be officially quoted for trading on the Australian Securities Exchange (ASX).
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Vanguard Investments Australia today released details of its three new exchange traded funds (ETFs) along with a decrease in the expense ratios across its existing range of Australian ETFs.
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Vanguard today announced its intention to launch three new Australian Exchange Traded Funds (ETFs) which will all track segments of the Australian share market.
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Investors in Vanguard's wholesale index funds saved $8,685,580 in 2010 through 'crossing savings', or reduced spread costs.
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News & Commentary
Comeback vehicle 12 Apr 10
The latest Listed Managed Investments Monthly Update, published by the ASX, appears to confirm that numerous cashed-up investors are using Exchange Traded Funds (ETFs) as their comeback vehicle to re-enter the sharemarket.
In the 12 months to the end of March, the market capitalisation of ETFs listed on the Australian market grew by 150% t $3.36 billion.
Presumably, many more investors are following a core-and-satellite strategy – using ETFs to provide the core of their equity portfolios, and actively-managed funds and/or direct shares as “satellites” to the ETF core.
As this ASX report documents, the market capitalisation of ETFs grew at a powerful pace through the bear market and then truly accelerated when the market swung into its recovery phase.
For instance between March 2008 and March 2009 at the height of the bear market, the market capitalisation of ETFs increased by an impressive 31%.
Regular readers will no doubt note that Smart Investing regularly reports on the Australian and global growth of ETFs. The rate of growth can simply not be ignored.
Many investors – including self-managed super funds – of course use listed investment companies to provide the core of their equity portfolios. But interestingly, the rate of growth in the market capitalisation of listed investment companies has been much more modest in percentage terms than ETFs – albeit from a much larger base.
In the 12 months to March, the market capitalisation of listed investment companies increased by 30.4%. his was despite the strength of the market over that period.
And between March 2008 and March 2009, the market capitalisation of listed investment companies had fallen by 31%. br />
It is apparent that the rebound in share prices is acting as a trigger for countless cashed-up investors to choose ETFs as a favoured comeback vehicle.
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