The Fund seeks to provide long-term capital appreciation through an active management approach with volatility lower than the FTSE Global All Cap Index (AUD Hedged), before taking into account fees, expenses and tax. The Fund does not seek to track the Index.

Benefits of investing in the Vanguard Global Minimum Volatility Active ETF

Disciplined and systematic approach

The Fund aims to achieve long-term capital appreciation by using a quantitative model to assess the interaction between securities in the investment universe and their impact on the overall volatility of the portfolio. The Fund's investments will be selected based on the output of this model.

A focus on managing volatility

Investment decisions are made within a framework that considers risk factors relevant to volatility, including those associated with particular industries and securities. In addition, the Fund's currency-hedging reduces the potential impact of currency exchange rate volatility.

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

Medium

Investor suitability

Buy and hold investors seeking long-term capital growth, global diversification, and with a lower tolerance for the risks associated with share market volatility.

While the Fund's objective is to limit the volatility of global stock investing, we caution against expecting any low or minimum volatility investment to outperform, or even match, the global equity market over the long term.

Buy and hold investors seeking long-term capital growth, global diversification, and with a 
lower tolerance for the risks associated with share market volatility.

About the Fund

The Fund invests primarily in a group of global equity common stocks that together are deemed by the portfolio manager to have the potential to generate lower volatility relative to the broad equity markets.

Vanguard will seek to hedge most of the Fund's currency exposure back to the Australian dollar to further reduce overall portfolio volatility. Currency hedging will typically be implemented through forward foreign exchange contracts.

The Fund follows an active management approach and does not seek to track the benchmark.

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 portfolio will include a diverse mix of companies representing many different market sectors, countries, and industry groups. The portfolio manager uses a quantitative model to evaluate all of the securities in an investment universe that seeks to achieve the lowest amount of expected volatility subject to a set of reasonable constraints designed to foster portfolio diversification and liquidity.

Investment universe

The investment universe is comprised of securities in the FTSE Global All-Cap Index. This index has around 7,600 stocks, and covers large, mid and small capitalisation stocks globally across developed and emerging markets. The Fund may invest in securities that cease to be or are expected to be included in the index.