Vanguard today launches two new fixed income ETFs: the Vanguard EUR Eurozone Government 1-3 Year Bond UCITS ETF and the Vanguard EUR Corporate 1-3 Year Bond UCITS ETF.
Sign up to our free newsletters
Jon Cleborne, Head of Europe at Vanguard
The two new UCITS solutions enrich Vanguard’s fixed income ETF range
These two new solutions can be used as additional building blocks in investors’ portfolios. The ETFs will be listed on Borsa Italiana, Deutsche Börse, Euronext Amsterdam, and SIX Swiss Exchange.
Jon Cleborne, Head of Europe, Vanguard, comments on the launch of the new ETFs: “With the “baby boomer” generation in or entering retirement, and in an era of persistent higher interest rates, the importance of bonds in an investor’s portfolio will only continue to grow. The bond market is twice the size of the equity market. And yet it is still plagued by opaqueness and high costs. Investors deserve better and we are taking steps to remedy this with an expanded line-up of bond ETFs.”
The ETFs seek to track the following Bloomberg indices, which invest in sovereign and corporate bonds where appropriate. The Vanguard EUR Eurozone Government 1-3 Year Bond UCITS ETF will track the Bloomberg Euro-Aggregate: Treasury – 1-3 Year Index and the Vanguard EUR Corporate 1-3 Year Bond UCITS ETF will track the Bloomberg Euro Corporate 500 1-3 Year Index. The ETFs will be available to investors in Continental Europe, and international investors as part of Vanguard’s global UCITS platform.
The following share classes will be available at launch and carry the following ongoing charges figures:
| ETF | Ongoing Charges |
| Vanguard EUR Eurozone Government 1-3 Year Bond UCITS ETF EUR Accumulazione | 0,07% |
| Vanguard EUR Eurozone Government 1-3 Year Bond UCITS ETF EUR Distribuzione | 0,07% |
| Vanguard EUR Corporate 1-3 Year UCITS ETF EUR Accumulazione | 0,09% |
| Vanguard EUR Corporate 1-3 Year UCITS ETF EUR Distribuzione | 0,09% |
The new ETFs will be managed by Vanguard’s Fixed Income Group. The Fixed Income Group manages more than $2.47 trillion in assets across the globe and draws on the diverse perspectives and knowledge to deliver accurate benchmark tracking, prudent risk management and highly competitive investment performance.
Mark Fitzgerald, head of product specialism at Vanguard Europe, comments: “These new ETFs will provide broad, diversified, liquid access to their respective exposures in a low-cost, high-quality format. We prioritised these ETFs through our rigorous research process after assessing the needs of our investors in our focus regions. Our goal is to help clients create enduring portfolios that can provide value to investors by delivering real positive returns, through tracking Bloomberg benchmarks and investing in sovereign and corporate bonds.”
Source : ETFWorld.co.uk
Subscribe to Our Newsletter
