Vanguard continues to set the benchmark for investment choice and fees, writes Susan Hely
It is no wonder that Vanguard wins the award this year for Best ETF Provider. It is the greatest disruptor of the investment world. In the 1970s, founder Jack Bogle took on Wall Street’s high-fee, high-turnover active investment managers by offering low-fee, low-turnover index funds. The $5.9 trillion group hasn’t stopped disrupting the poor practices of the investment world and changing the way people invest.
Investors in Australia benefited again in November 2017 when Vanguard launched four diversified ETFs with different levels of risk. While diversified funds aren’t new – there are hundreds of unlisted multi-sector managed funds – Vanguard’s four are the first for the listed ETF landscape in Australia. What is revolutionary is the cost: a low 0.27%pa. This is at least a quarter of the average fee for a multi-sector managed fund, which Morningstar says is 1.09% for conservative, 1.14% for balanced, 1.41% for growth and 1.31% for high growth.
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