Benefits of investing in the Vanguard Global Value Equity Active ETF

Disciplined and systematic approach

The Fund aims to achieve long-term capital appreciation by using a rules-based quantitative investment process to identify and invest in securities that have low prices relative to their fundamental measures of value.

A focus on value-style investing

Investment decisions are made within a framework that aims to provide investors with a targeted exposure to value style investing.

Global scale and expertise

The Fund offers access to investment expertise from Vanguard's international trading hubs and deep research expertise.

Enjoy the low costs expected from Vanguard

Investors can't control the markets, but they can control the costs of investing. Providing low cost investments isn't a pricing strategy for us. It's how we do business. Vanguard's scale also helps to keep costs low.

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.

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 level

High

Investor suitability

Buy and hold investors seeking outperformance against the index through exposure to the value factor, long-term capital growth, some income, international diversification, and with a higher tolerance for the risks associated with share market volatility.

Buy and hold investors seeking long-term capital growth through value style investing in global securities.

About the Fund

In pursuit of its investment objective, Vanguard uses a proprietary quantitative model to evaluate an investment universe comprised of large, mid and small cap equity securities from developed markets across the world, which includes a diverse representation of companies, market sectors and industry groups. This investment universe is drawn primarily from equity securities included in the FTSE Developed All Cap Index and the Russell 3000 Index. 

Vanguard's quantitative model implements a rules-based active approach that aims to assess the factor exposures of securities, favouring equity securities which, when compared to other securities in the investment universe, have lower prices relative to their fundamental measures of value (measures may include price-to-book, price-to-earnings ratio and price-to-operating cash flow).

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 invests primarily in a group of global equity common stocks with the potential to generate higher returns relative to the broad equity market. The portfolio will include a diverse mix of companies representing many different market sectors, industry groups, and countries. The portfolio manager uses a rules-based quantitative model to evaluate all of the securities in an investment universe comprised of large and mid, and small capitalisation stocks and to construct an equity portfolio that seeks to achieve exposure to securities with lower prices relative to fundamental measures of value subject to a set of reasonable constraints designed to foster portfolio diversification and liquidity. Securities with lower prices relative to fundamental value may be identified by measures such as book to price, earnings to price and cash flow to price ratios.

Investment universe

The investment universe is comprised of securities in the FTSE Developed All-Cap Index and the Russell 3000 Index. The FTSE Developed All-Cap Index is comprised of large, mid and small capitalisation securities in developed markets. The Russell 3000 Index is comprised of the 3,000 largest publicly held companies in the US and is used to provide more access to US mid and small capitalisation securities. The Fund may also invest in securities that cease to be or are expected to be included in the FTSE Developed All-Cap Index and the Russell 3000 Index.