ETFs, Infrastructure, Investments

Global infrastructure, small-cap ETFs unveiled

Two new exchange-traded funds (ETF) offering exposure to global listed infrastructure and international small companies will commence trading on the Australian Securities Exchange (ASX) in the coming weeks, providing investors with access to greater diversification.

The Vanguard Global Infrastructure Index ETF offers exposure to around 146 listed infrastructure companies across a range of industries, including transportation, energy and communications, at a management expense ratio (MER) of 0.47 per cent.

It is the lowest-cost global infrastructure ETF currently available and is expected to start trading on the ASX at the end of October.

The Vanguard MSCI International Companies Index ETF is the first ETF listed in Australia to offer broadly diversified international small-cap exposure to around 3910 holdings across 19 developed markets globally.

Offered at an MER of 0.32 per cent, it allows more investors to tap into the long-term growth potential typical of the international small companies sector, and is expected to begin trading in November.

The two new funds will be ETF share classes of existing wholesale funds that were established over 10 years ago. Both portfolios are unhedged.

“The addition of these ETFs provides additional building blocks to allow investors to construct investment portfolios that are truly diversified across and within asset classes, and suited to their individual goals,” Vanguard Australia head of corporate affairs Robin Bowerman said today.

“Since introducing ETFs nearly 10 years ago, each product we have added reflects Vanguard’s focus on offering enduring funds that deliver on their promise for investors.”

Bowerman noted the ETF market in Australia continues to grow in both assets under management (AUM) and products on offer, demonstrating investors are recognising the accessibility, diversification and low-cost benefits of these funds.

“Increasingly, we see Australian investors looking to add international diversification to their portfolios, and these ETFs offer broad international exposure while at the same time providing greater ability to manage a portfolio’s allocation to specific asset classes,” he said.

The new funds join four other ETFs introduced by Vanguard Australia this year – two environmental social governance funds and two active factor funds – bringing the total number of ETFs on offer to 28.

Vanguard Australia’s total ETF AUM is $12.1 billion, making it the largest ETF provider in the country.

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