Vanguard brings four low-cost ETFs to Europe

ETF tradingVanguard Asset Management has launched four low-cost, Ireland-domiciled exchange-traded funds (ETFs) in Europe to add to the five it launched in 2012. The US firm is known for having some of the lowest fees in the asset management business. The firm describes itself as client-owned, stating that because Vanguard is owned by its funds, its investors own the company. The cheapest of the four products is a developed Europe ETF, which charges a total expense ratio of 0.15%, while the most expensive is an all-world high dividend ETF, which charges 0.29%. The company has also launched a Japan ETF and a developed Asia ex-Japan ETF. Vanguard will be hoping that more UK investors will buy its low-cost ETFs now that the Retail Distribution Review has outlawed adviser commissions. “ETFs are growing in popularity in Europe and our experience in other markets suggests that this trend will continue,” says Axel Lomholt, head of product, international, Vanguard. Investors cannot buy shares in the ETFs directly from Vanguard but must purchase them through a broker, which will charge a flat or minimum commission. A spokesperson for Vanguard advises investors to be aware of the impact of fees on small purchases of ETF shares. ©2013 funds europe

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