Vanguard Diversified Growth Index ETF (VDGR)
About this Fund
|FUND MANAGER||Vanguard Investments Australia|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
The Fund seeks to track the weighted average return of the indices of the Underlying Funds in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax. The Fund seeks to achieve its objective by employing a passive investment strategy.
|INVESTMENT PROFILE||The Fund seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||Growth Composite Index|
|FUND SIZE||Growth Composite Index|
|NO. OF HOLDINGS|
Benefits of investing with Vanguard
Competitive long-term performance
Vanguard's investment approach provides investors with an efficient way to capture long-term market performance.
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.
Buy and hold investors seeking long term capital growth, but requiring some diversification benefits of fixed income to reduce volatility.
Investors seeking long term capital growth but requiring some diversification benefits of fixed income to reduce volatility
About the Fund
The ETF provides low-cost
access to a range of sector funds, offering broad diversification across
multiple asset classes. The Growth ETF is biased towards growth assets,
and is designed for investors seeking long-term capital growth. The ETF
targets a 30% allocation to income asset classes and a 70% allocation to growth
Investment approach of the Fund
The Fund seeks to achieve its objective by employing a passive investment strategy that tracks the weighted average return of the various indices of the Underlying Funds in which the Fund invests, in proportion to their applicable Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
The Strategic Asset Allocation (SAA) has been established to achieve investment risk and return outcomes commensurate with the respective risk profile. The SAA is strictly adhered to and deviations away from the target allocation are limited to no more than 2% for each asset class. Further information about the specific SAA for each Fund and their Underlying Funds is set out Sections 3 to 6 of the PDS.
Investment structure of the Fund
The Fund gains its investment exposure to the applicable asset class and index by investing into Underlying Funds. Each of the Underlying Funds are registered managed investment schemes, for which Vanguard is the responsible entity and investment manager. As responsible entity of the Underlying Funds, Vanguard is solely responsible for their management and administration.
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.
How we invest your money
The Fund seeks to achieve its objective by employing a passive investment strategy that tracks the weighted average return of the various indices of the Underlying Funds in which the Fund invests, in proportion to the SAA for the Fund, before taking into account fees, expenses and tax.
The Fund holds units in the following Underlying Funds:
Please see section 15 of the PDS for further information regarding the investment strategy and investment return objective of these Underlying Funds.
Vanguard may, at its discretion, commence investing directly in the securities that are, have been or are expected to be in the indices of the Underlying Funds (as opposed to investing in the Underlying Funds) or in different or other funds. Vanguard will notify investors if such a change occurs. For more information about the Underlying Funds and the indices that they track, visit the Vanguard website at www.vanguard.com.au
Strategic asset allocation
(Asset class: SAA / Range)
Total income assets: 30% / 28-32%
Total growth assets: 70% / 68-72%