The Fund seeks to track the return of the FTSE Developed ex-Australia Choice Index (with net dividends reinvested) in Australian dollars (Index), before taking into account fees, expenses and tax.

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 long-term capital growth, some tax-effective income, and with a higher tolerance for the risks associated with share market volatility.

Investors with Australian dollars, seeking exposure to a diversified portfolio of international shares with an ethically conscious screen.

About the Fund

The Fund seeks to track the return of the FTSE Developed ex-Australia Choice Index (with net dividends reinvested) in Australian dollars ("Index), before taking into account fees, expenses and tax.

The Fund meets its investment objective by aiming to hold all of the securities in the Index most of the time, allowing individual security weightings to vary marginally from the Index from time to time. The Fund may invest in futures traded on a licensed exchange, securities that have been removed from or are expected to be included in the Index.

Futures traded on a licensed exchange may be used to gain market exposure without investing directly in securities. This allows Vanguard to maintain the Fund's liquidity without being under-invested. Importantly, derivatives are not used to leverage the Fund's portfolio.

The Fund will be fully exposed to the fluctuating values of foreign currencies, as there will not be any hedging of foreign currencies to the Australian dollar. Investments in the ETF are subject to the currency risk of international securities and the value of the investment may decrease because of unfavourable changes in currency exchange rates.

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 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.

Strategic asset allocation

• International shares: 100%

Index information

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 Index is reviewed quarterly - in March, June, September and December. Source: FTSE

For further information regarding the Index values, returns and methodology, please refer to FTSE's website at https://www.ftserussell.com/products/indices/global-choice