Vanguard Global Infrastructure Index ETF (VBLD)
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/101764-2024-07-25-11:15.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | VBLD* |
APIR | |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Vanguard Global Infrastructure Index ETF seeks to track the return of the FTSE Developed Core Infrastructure Index (with net dividends reinvested) in Australian dollars, before taking into account fees, expenses and tax. |
INVESTMENT PROFILE | The Fund seeks to track the return of the Benchmark, before taking into account fees, expenses and tax. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 19-10-2018 |
BENCHMARK | FTSE Developed Core Infrastructure Index (with net dividends reinvested) |
FUND SIZE | FTSE Developed Core Infrastructure Index (with net dividends reinvested) |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | 100-200 |
FEES | 0.47% 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.
Investor suitabilityInvestors seeking exposure to a diversified portfolio of global infrastructure securities. |
RISK LEVEL | High |
INVESTOR SUITABILITY | Investors seeking exposure to a diversified portfolio of global infrastructure securities. |
Risks
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Detail |
Key Features
About the FundThe Fund provides low-cost access to infrastructure securities listed in developed countries. It offers investors diversified exposure to infrastructure sectors, including transportation, energy and telecommunications. The Fund meets its investment objective by holding 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. 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. |
Mandate
How we invest your moneyThe Fund seeks to track the return of the FTSE Developed Core Infrastructure Index (with net dividends reinvested), in Australian dollars, before taking into account fees, expenses and tax. The index comprises securities in developed countries, which provide exposure to transportation, energy and telecommunications infrastructure. 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. The Fund will 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 and securities that have been removed from or are expected to be included in the index. 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*
*This is a targeted strategic asset allocation. In addition, cash may be held for the purposes of liquidity management and derivatives may be used to manage market exposure. Index InformationThe FTSE Developed Core Infrastructure Index comprises of securities in developed countries that own, manage or operate structures or networks, which are used for the processing or movement of goods, services, information/data, people, energy and necessities. For companies to be included in the Index, at least 65% of their revenues must be attributable to businesses/activities within the 3 core infrastructure sectors (transportation, energy and telecommunications). The Listed Alternative Investments (LPX) Group determines semi-annually, the proportion of company revenue deriving from infrastructure core or related activities ahead of index rebalancing. Index rebalancing occurs semi-annually in March and September. (Source FTSE: For further information regarding the benchmark index values, returns and methodology, please refer to FTSE's website at www.ftse.com [ftse.com]) |