Exchange Traded Funds (ETFs)

Benefits of Vanguard ETFs

Low cost

ETF fees are usually significantly less than actively managed funds. ETFs are also more cost efficient than investing in the same exposure of individually purchased shares.

Diversification

Vanguard ETFs provide investors with a highly diversified investment with broad exposure to entire markets within an index. This also includes shares that investors may not be able to access directly on the ASX such as international shares.

Tax efficiency

The traditional low turnover of investments provided by an indexing approach minimises the capital gains distribution impact. This improves performance and tax efficiency over the longer term.

Liquidity

Vanguard’s ability to create and redeem ETF units on a daily basis ensures the primary underlying depth of liquidity. Secondary sources of liquidity exist in the volume of trading of the ETF itself and the investment environment it is trading in.

Transparency

Vanguard provides regular information to the market including the daily fund Net Asset Value (NAV) making ETFs highly transparent investments.

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