Vanguard Investments has joined the ranks of institutions offering exchange-traded funds (ETFs), with the launch of three ETFs giving access to the Australian, US and world ex-US sharemarkets.

Vanguard’s head of retail, Robin Bowerman, says ETFs are a low-cost alternative to the manager’s existing index funds – which themselves are among the most cost-effective managed funds available.

Bowerman says ETFs appeal to a different group of investors than index funds, and he does not expect the new products to significantly cannibalise the manager’s existing index fund line-up.

The MERs for the ETFs range from 0.07 per cent for the US Total Market Shares ETF to 0.27 per cent for the Australian Shares Index ETF.

 

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