After successfully attracting assets through its low-cost fund products in the U.S., Vanguard is looking across the pond to England and launching its first Britain-listed exchange traded fund investments.
Vanguard Asset Management will list five ETFs on the London Stock Exchange, reports Anjuli Davies for Reuters. The company first offered its index funds to Europe back in June 2009.
Vanguard is the third largest ETF provider and currently has about $207.9 billion in U.S.-listed ETF assets under management. [Vanguard, Bond Funds Dominating ETF Flows]
The money manager hopes to replicate its success through offering low-cost ETF alternatives on the London exchange. The company’s new ETFs, including a FTSE 100, S&P 500 and British government bond fund, have expense ratios ranging from 0.09% to 0.45%, compared to the industry average of 0.53% in Britain.
“We have been deliberately aggressive on price … we would hope to see some transfer business,” Nick Blake, head of retail at Vanguard Asset Management, told Reuters. “What we stand for is putting healthy competition in the market … we still think there is further to go in terms of driving down prices.”
The “Vanguard Effect” has helped the company attract significant inflows in just a short amount of time as the asset manager made broad fee cuts.
The Vanguard ETFs will compete with products from providers like BlackRock‘s iShares, Societe Generale and Deutsche Bank.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.
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