SMSFs in Vanguard’s sights with low-cost offering
Vanguard’s two new actively managed ETFs will start on the ASX tomorrow, and the fund manager anticipates capturing the SMSF market in its new launch.
The new ETFs, Global Value Equity and Global Minimum Volatility, aim to offer a low-cost option for investors seeking to gain factor exposure.
“The funds seek to achieve specific risk and return objectives through factor exposures to global value and global minimum volatility, both offered at a low management expense ratio of 0.28 per cent,” Vanguard said in a statement today.
For Vanguard, the Global Minimum Volatility fund can be particularly applicable to SMSFs in pension phase and looking to manage market volatility.
“These new active ETFs are more targeted to advisers as portfolio construction tools to meet specific goals and objectives, however we would expect advisers to consider these products for their clients with an SMSF,” Vanguard’s head of corporate affairs, Robin Bowerman, told SMSF Adviser.
Vanguard’s launch comes two weeks after rival Beta Shares announced plans to launch a low-cost Australian equities ETF on the market this year.