Vanguard MSCI Australian Small Companies Index ETF (VSO)
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100879-2023-09-16-02:53.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | VSO* |
APIR | |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund provides low-cost, broadly diversified exposure to small companies listed on the Australian Securities Exchange. |
INVESTMENT PROFILE | The Vanguard MSCI Australian Large Companies Index ETF seeks to track the return of the MSCI Australian Shares Large Cap |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 23-05-2011 |
BENCHMARK | MSCI Australian Shares Small Cap Index |
FUND SIZE | MSCI Australian Shares Small Cap Index |
DISTRIBUTION FREQUENCY | Half-yearly |
NO. OF HOLDINGS | 150+ |
FEES | 0.30% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing with VanguardCompetitive long-term performance Vanguard's investment approach provides investors with an efficient way to capture long-term market performance. Diversification The Fund invests in a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities. Low cost investing The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund. Risk levelHigh Investor suitabilityBuy and hold investors seeking long-term capital growth, some tax-effective income, and with a higher tolerance for the risks associated with share market volatility. |
RISK LEVEL | High |
INVESTOR SUITABILITY | Investors seeking long-term capital growth and some tax-effective income via exposure to a |
Risks
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Detail |
Key Features
About the FundThe ETF provides low-cost, broadly diversified exposure to small companies listed on the Australian Securities Exchange. The sectors in which the ETF invests include industrials, materials and consumer discretionary. The ETF offers potential long-term capital growth, which can be typical of the small company market sector. What is an ETF?An ETF is an Exchange Traded Fund, which is quoted for trading on the AQUA market of the ASX (in this case, it is the CDIs that are quoted for trading on the AQUA market of the ASX). Generally, these exchange traded funds comprise broadly diversified investment portfolios of either shares, bonds or real estate securities and are constructed using an indexed investment methodology. ETFs seek to combine the best features of index managed funds and listed shares in one investment. Vanguard ETFs come with the benefits of low cost, broad diversification, transparency and tax efficiency due to low turnover of the underlying securities. However, unlike traditional index funds which are priced only once per day, ETF securities trade on a stock exchange so they can be bought and sold at any time during the trading day at prevailing market prices. ETFs carry certain risks (refer to the section 2. Risks' in the PDS for further details). Who is Vanguard?Vanguard Investments Australia Ltd (Vanguard) is a wholly owned subsidiary of The Vanguard Group, Inc. With more than AUD$6.9 trillion in assets under management as of 31 December 2018, including over AUD$1.2 trillion in ETFs; The Vanguard Group Inc is one of the world's largest global investment management companies. In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 20 years. |
Mandate
How we invest your moneyThe Vanguard MSCI Australian Small Companies Index ETF seeks to track the return of the MSCI Australian Shares Small Cap Index before taking into account fees, expenses, and tax. The MSCI Australian Shares Small Cap Index was not created by, and is not managed by, a related body corporate of Vanguard. To closely track the MSCI Australian Shares Small Cap Index, the Fund will hold all of the securities in the index (at most times) allowing for individual security weightings to vary marginally from the index from time to time. The Fund may invest in securities that have been or are expected to be included in the index. Index informationThe MSCI Australian Shares Small Cap Index is a component of the MSCI Global Investable Market Indices which offers coverage and non-overlapping size, style, and sector/industry segmentation of the global securities listed on developed market stock exchanges. The securities in the MSCI Australian Shares Small Cap Index are those securities in the global universe of equity securities which are classified uniquely as Australian. The securities are screened for investability by considering such factors as market capitalisation, free float and trading activity to derive the "Investable Equity Universe. The MSCI Australian Shares Small Cap Index includes the smallest Australian companies (by market capitalisation) in the Investable Equity Index Universe so that the index free float-adjusted market capitalisation represents approximately 14% of the Investable Equity Universe as defined by MSCI. The index values are calculated daily using the official exchange closing prices. Index values are available from MSCI. MSCI indices are maintained through quarterly and semi-annual reviews conducted by MSCI. The semi-annual review is a thorough recalculation of the composition of securities in the index to reflect changes in companies, securities and their investability. The quarterly review adjusts for significant changes between the major reviews. For information regarding the benchmark index values, returns, and methodology please refer to MSCI's website www.msci.com/products/indexes/ |