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When you're constructing portfolios for your clients, using low-cost index ETFs and managed funds can serve as the foundation for an investment strategy. These offer an effective way to achieve broad diversification and can be easily positioned to help meet your clients' risk and return requirements.

And since index funds seek to track market returns, establishing performance expectations with investors is much simpler. That's just one of many benefits. Index-based investment strategies are typically low in their portfolio turnover, relative to active strategies, which can help reduce an investor’s tax burden.

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The Vanguard Group Inc. launched the first index fund for individual investors in 1976. And we've been honing our benchmark selection and tracking skills every day since.

Since then, we've built a sustainable, scaled, and successful index business. We are the partner you can count on, day in and day out, for tight tracking of the markets and sophisticated portfolio management. This deep expertise along with our commitment to advisers is why Vanguard remains your ideal choice for indexing.

The product structure you choose (ETF or managed fund) depends on your client's individual circumstances and your business preferences. Here are some key differences to note about each of the structures.

FeatureETF

Managed Fund

Professional investment management

YesYes

Transparent holdings

YesYes
Execution price

At market on exchange

End of day NAV

Trading flexibility

Trade any time (during market hours)

One unit price struck on a daily basis

How to transact

Via the ASX (broker platform or Vanguard*)

Via platform or direct with Vanguard**
Feature

Professional investment management

ETF
Yes

Managed Fund

Yes
Feature

Transparent holdings

ETF
Yes

Managed Fund

Yes
Feature
Execution price
ETF

At market on exchange

Managed Fund

End of day NAV

Feature

Trading flexibility

ETF

Trade any time (during market hours)

Managed Fund

One unit price struck on a daily basis

Feature

How to transact

ETF

Via the ASX (broker platform or Vanguard*)

Managed Fund

Via platform or direct with Vanguard**

*Excludes VTS and VEU
**Wholesale funds

Plain Talk Guide – ETFs

ETFs are growing in popularity. In this Plain Talk Guide your client will find answers to common questions about ETFs.

Download

Plain Talk Guide – Managed funds

Managed funds provide a cost-effective way to access a diversified mix of professionally managed investments.

Download