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Vanguard expands ETF offering

Vanguard Australia is expanding its line-up with the lowest cost global emerging markets (EM) exchange traded fund (ETF) on offer on the Australian Securities Exchange (ASX).

The Vanguard FTSE Emerging Markets Shares Exchange Traded fund – listed under the ticker code VGE – has a low-cost expense ratio of 48 basis points and will track the return of the FTSE Emerging Index.

“For investors looking to obtain exposure to emerging markets, this ETF delivers comprehensive exposure at a low cost,” Vanguard head of product and marketing Robyn Laidlaw said.

“VGE provides broad exposure to the world’s emerging markets via a well-constructed market index and can deliver useful equity diversification to an investor’s portfolio, which is typically uncorrelated to the performance of developed economies.”

The VGE is anticipated to be available on the ASX by mid-November and is Vanguard’s first Australia-domiciled international equities ETF.

Vanguard said the product will include flexibility to elect dividend reinvestment, simplified withholding tax administration, and no requirement for investors to complete the US W8-BEN tax form.

“In addition to low costs, underlying diversification is also vital, especially in volatile market conditions,” Ms Laidlaw said.


“It’s an optimal solution to access global emerging markets while keeping control of your reporting and investment management onshore.”