|Vanguard Enters European ETF Market|
|May 16, 2012 09:08 (CET)|
Fund manager Vanguard has announced its long-awaited entry to the European ETF market.
The firm has announced that it will shortly be listing five Irish-domiciled funds on the London Stock Exchange.
The ETFs are the:
Vanguard FTSE 100 ETF (LSE:VUKE), with a total expense ratio (TER) of 0.1 percent
Vanguard S&P 500 ETF (LSE: VUSA, VUSD), with a TER of 0.09 percent
Vanguard FTSE All-World ETF (LSE: VWRL, VWRD), with a TER of 0.25 percent
Vanguard FTSE Emerging Markets ETF (LSE: VFEM, VDEM), with a TER of 0.45 percent
Vanguard UK Government Bond ETF (LSE: VGOV), with a TER of 0.12 percent
Knight Capital has been named as an initial market-maker for the funds.
Tom Rampulla, head of Vanguard’s UK operation, stressed that the firm’s ETF range should be seen as part of a wider offering of mutual funds.
“At Vanguard, we see ETFs and traditional mutual funds as two sides of the same coin,” said Rampulla. “Both products offer investors a low-cost way to access broadly diversified stock and bond investments.”
“We have chosen to launch the physical-backed ETF replication model because it is straightforward and easy to understand,” Rampulla added.