Vanguard Releases New Index Equity ETFs
Vanguard this week launched two new index equity exchange-traded funds (ETFs): Vanguard Developed Markets ex-US Value Index ETF (VDV) and Vanguard Developed Markets ex-US Growth Index ETF (VDG).
Both ETFs have an expense ratio of 0.08%, positioning the products as the lowest cost in the category. The ETFs provide investors with additional flexibility to customize international allocations beyond broad-market approaches.
“The new index equity international style-based ETFs offer a cost-effective index alternative in a space dominated by active strategies,” said Dan Reyes, global head of Investment Product at Vanguard. “The ETFs are designed to provide targeted exposure to developed markets equities by investment style and offer low-cost, broadly diversified options to investors in their international equity allocations.”
VDV and VDG are advised by Global Equity Index Management, within Vanguard Capital Management. VDV’s portfolio managers are Jeffrey D. Miller, Christine D. Franquin and John Kraynak, CFA, while VDG’s portfolio managers are Miller, Franquin and Nicole Brubaker.
The ETFs can be used individually for style tilts, together to break out developed markets exposure currently accessed through products like Vanguard FTSE Developed Markets ETF (VEA), or alongside Vanguard Emerging Markets ETF (VWO) to create total international equity exposure.
Founded in 1975, Vanguard offers investments, advice, and retirement services to individual investors around the globe—directly, through workplace plans, and through financial intermediaries.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.