Vanguard, the world’s largest mutual fund company and the third-largest global provider of exchange-traded funds (ETFs), has reported that its ETFs are gaining popularity around the world.
Vanguard, whose global ETF assets amounted to US$281 billion (C$289 billion) in June this year, has expanded its range of products in Canada, the United States, Australia and Europe. Recently, it also introduced its first ETF in Hong Kong.
“Investors worldwide have become more focused on broad diversification, low investment costs and transparency—the key characteristics of Vanguard index funds and ETFs,” says Jim Norris, managing director for Vanguard International.
Here are Vanguard’s global ETF highlights for the first six months of this year.
Canada
U.S.-based Vanguard entered Canada in December 2011, listing six ETFs on the Toronto Stock Exchange. It added five more in November 2012. In June this year, Vanguard Investments Canada had nearly C$1 billion in ETF assets under management.
U.S.
Vanguard says its cash flow continues to be strong in its lineup of 67 American-based ETFs, with investors entrusting US$26 billion (almost C$27 billion) to the firm during the first six months of 2013.
Vanguard has recently broadened its product line in the U.S. It introduced three low-cost fixed income ETFs: Vanguard Total International Bond ETF, Vanguard Emerging Markets Government Bond ETF and Vanguard Short-term Inflation-protected Securities ETF.
In addition, Vanguard reported lower expense ratios on 56 U.S.-based ETFs over the past year. These include some of its largest and most popular ETFs. The Vanguard Emerging Markets ETF, whose size is US$55 billion (C$56.60), saw an expense ratio reduction from 0.20% to 0.18%. The Vanguard Total Stock Market ETF, with a size of US$31 billion (almost C$32 billion), experienced a reduction from 0.06% to 0.05%.
Australia
Vanguard Investments Australia recently reached nearly AUD$1 billion (almost C$1 billion) in ETF assets under management. The company introduced its first three ETFs in Australia in 2009 and now offers nine ETFs there.
Europe
Vanguard had €1.09 billion (C$1.49 billion) in ETF assets under management in Europe as of June. The company launched four physically backed, Irish-domiciled ETFs in May 2013 on the London Stock Exchange. It introduced five Irish-domiciled ETFs in 2012. Vanguard has also cross-listed seven of the ETFs on the NYSE Euronext Exchange in Amsterdam and Paris, and on the SIX Swiss Exchange in Switzerland.
Hong Kong
Vanguard introduced its first ETF in Hong Kong in May this year. The Hong Kong office is the Asian hub of the company, which established a site in Japan in 2000 and in Singapore in 2003. In Asia, Vanguard provides institutions and intermediaries with access to its global management capabilities through ETFs, separately managed accounts and mutual funds.
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