Vanguard has launched a new diversified ETF on the Australian Securities Exchange for fixed income investors.
Vanguard said: “The Vanguard Diversified Income ETF (ASX: VDIF) is designed for Australian investors seeking regular income with some capital growth potential, without sacrificing the benefits of diversification, sets a new standard in the Australian market for income-generating ETF solutions. It provides exposure to over 12,000 securities via access to underlying funds that invest in investment grade fixed income and corporate bond strategies, and high dividend yield equities. VDIF targets a 40% allocation to defensive asset classes and a 60% allocation to growth asset classes. VDIF has a management fee of 32 basis points per annum.”
The new ETF fund was launched alongside an all-equities diversified ETF.
Matthew Cho, Head of Multi-Asset Solutions said Vanguard’s ready-made diversified ETFs reflect Vanguard’s best thinking of its global investment strategy team to deliver low cost, transparent diversified investment portfolios that meet the primary portfolio construction needs of investors across a spectrum of risk-return profiles.
“Like our existing ready-made diversified fund options, our new all growth and income-focused ETFs are designed with the diverse needs of Australian investors in mind. For example, a younger investor in an accumulation stage and focused on building their wealth, or a retiree looking for a higher level of income,” Mr Cho said.
“Our diversified ETFs are grounded in our proven investment philosophy which emphasises low costs and broad diversification. We bring this philosophy to life through strategic asset allocation – that is we carefully design the weights of the various asset classes to be robust in various market conditions. Our professional portfolio managers then regularly rebalance the ETFs to ensure they stay aligned with their stated risk profiles and investment objectives.
“Vanguard’s ready-made diversified ETFs offer investors a simple, smart, low-cost solution, where with just one trade, investors can hold a broad investment portfolio containing thousands of securities across multiple asset classes, sectors and countries to spread their holdings and grow and protect their wealth against the impacts of market volatility.”
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Vanguard’s new diversified ETFs are available on the Vanguard Personal Investor platform and will be rolled out to third-party platforms progressively.
Vanguard’s diversified ETF range
Vanguard now offers six ready-made diversified ETF options to Australian investors: the Vanguard Diversified Conservative Index ETF (ASX: VDCO); the Vanguard Diversified Balanced Index ETF (ASX: VDBA); the Vanguard Diversified Growth Index ETF (ASX: VDGR); the Vanguard Diversified High Growth Index ETF (ASX: VDHG), the Vanguard Diversified All Growth Index ETF (ASX: VDAL) and the Vanguard Diversified Income ETF (ASX: VDIF).
