Vanguard Ethically Conscious International Shares Index Fund
About this Fund
|FUND MANAGER||Vanguard Investments Australia|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
The Fund seeks to track the return of the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian
|INVESTMENT PROFILE||The Fund seeks to track the return of the Benchmark before taking into account fees, expenses and tax.|
|BENCHMARK||FTSE Developed ex Australia Choice Index (with net dividends reinvested) in AUD|
|FUND SIZE||FTSE Developed ex Australia Choice Index (with net dividends reinvested) in AUD|
|NO. OF HOLDINGS||1500+|
Benefits of investing in the Vanguard Ethically Conscious International Shares Index Fund
The significant features and benefits of investing in the Fund include:
Competitive long-term performance
Vanguard's investment approach provides investors with an efficient way to capture long-term market performance.
The Fund provides exposure to a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities. This moderates the volatility of the portfolio and smooths out' investment returns over time. The Fund provides exposure to a wide selection of available securities in the relevant index, generally holding significantly more securities than most active funds with the same benchmark. From time to time, however, the number of securities in a given index may reduce due to factors such as index rebalancing.
Vanguard's buy and hold strategy means that securities are generally held within a portfolio over a long period of time. If certain securities are held for more than 12 months, any capital gain (if applicable) on the disposal of those securities may be reduced under the capital gains tax discount rules - a tax efficient outcome for eligible investors.
Low cost investing
The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund. The Fund typically has low portfolio turnover resulting in low trading costs such as brokerage and other transaction costs.
Benefits of investing with Vanguard
Stability and experience
The Vanguard Group, Inc. was established in 1975 and has been a leader in low cost investing ever since. In Australia, Vanguard leverages the scale, experience and resources of our established global business. Investing in the funds allows you to access the knowledge and skill of Vanguard as a specialist investment manager.
The Vanguard Group, Inc. was founded on a simple but revolutionary idea - that an investment company should manage the funds it offers in the sole interest of its clients. From rigorous risk management to transparent pricing to plain talk communications, we put our clients' interests first.
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.
Buy and hold investors seeking long-term capital growth through exposure to a diversified portfolio of international shares that excludes securities with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.
|RISK LEVEL||High: The potential for higher returns than lower risk investments, however there is the higher potential for below average returns and/or loss of capital.|
Investors with Australian dollars, seeking exposure to a diversified portfolio of international
About the Fund
The Fund provides exposure to many of the world's largest companies listed in major developed countries. It offers low-cost access to a broadly diversified range of securities that excludes companies with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.
The Fund is exposed to the fluctuating values of foreign currencies, as there will not be any hedging of foreign currencies to the Australian dollar.
How we invest your money
The Fund seeks to track the return of the FTSE Developed ex Australia ex Non-renewable Energy, Vice Products and Weapons Index (with net dividends reinvested) in Australian dollars before taking into account fees, expenses and tax.
The Fund aims to hold all of the securities in the index most of the time, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may be exposed to securities that have been removed from or are expected to be included in the index. The Fund may also invest in futures contracts.
The FTSE Developed ex Australia Choice Index is a market capitalization weighted index reflecting major developed markets which applies ethical screens that remove companies involved in fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment and a conduct related screen based on severe controversies. Companies in the underlying index universe are researched annually for eligibility against the screens based on publicly available information.
The Index is based on the FTSE Global Equity Index Series (GEIS) which captures 98% of the world's investable market capitalisation, of which the FTSE Developed ex Australia indexes are included. The Index was not created by, and is not managed by, a related body corporate of Vanguard.
The Fund may engage in securities lending. Securities lending is a common practice where holders of securities make short term loans of shares in return for a fee, to incrementally increase returns to investors.
Strategic asset allocation