Benefits of investing in the Vanguard Ethically Conscious International Shares Index Fund –
AUD Hedged 

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.

Diversification

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.

Tax efficiency

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.

Client focus

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.

Low costs

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.

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

About the Fund

Vanguard Ethically Conscious International Shares Index Fund (AUD Hedged) seeks to track the return of the FTSE Developed ex Australia Choice Index (with net dividends reinvested) hedged into Australian dollars (AUD) before taking into account fees, expenses and tax.

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, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment and a conduct related screen based on severe
controversies.

The Fund is hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations for Australian investors. 

How we invest your money

The Fund seeks to track the return of the FTSE Developed ex Australia Choice Index (with net dividends reinvested) hedged into Australian dollars (AUD) 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 hold securities that have been removed from or are expected to be included in the index. The Fund will hold forward foreign exchange contracts and may invest in futures contracts.

The FTSE Developed ex Australia Choice Index hedged into AUD Index comprises securities (shares) listed on the exchanges of the world’s major developed economies. The index excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment and a conduct related screen based on severe
controversies.

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

• International shares: 100%