PRODUCT FACT SHEET. Bronze

Transcription

1 Vanguard Australian Shares Index VAS VAS S&P / ASX % p.a. Vanguard Australian Shares Index Fund Index Information Aims to track the S&P / ASX 300 Index; The above index gives investors mid and small cap exposure. This may result in a higher degree of volatility when compared with other offerings which track the ASX 200, this security is more appropriate for the Growth and Aggressive risk profiles; Significant stock concentration as Top 10 names account for 44% of the underlying Significant industry specific concentration through Financials and Materials making up 44% and 15% of the index respectively; Structure Replication strategy is adopted to hold most of the underlying securities within the index while allowing the individual weightings to vary; Total Costs The fee makes this ETF one of the more cheaper broad market ETF offerings; Liquidity Bid / Ask spread is improving, however, not as tight as STW (SPDR S&P/ ASX 200 ) ETF;

2 SPDR Australian Share Index 30 September 2016 STW STW State Street Global Advisers S&P / ASX % p.a. N/A Index Information Aims to track the S&P / ASX 200 Index; The above index gives the investor a higher skew to the large cap end of the market and hence offers reduced exposure to mid and small companies when compared to VAS. This ETF is more suited to investors with a Moderate risk profile; Significant stock concentration as Top 10 names account for 46% of the underlying Significant industry specific concentration through Financials and Materials making up 37% and 16% of the Number of holdings 200; Structure Replication strategy is adopted to hold most of the underlying securities within the index while allowing the individual weightings to vary; Total Costs The fee is slightly higher than the VAS ETF, however tracks a more conservative index in the ASX 200. This is a key point of difference. Liquidity Maintains the lowest bid / ask spread relative to rivals; Average daily share trading volume remains one of the highest, ensuring liquidity is adequate;

3 Australian Property Index VAP VAP S&P/ASX 300 A-REIT 0.23% p.a. Vanguard Australian Property Securities Index Fund Index Information Aims to track the S&P/ASX 300 A-REIT Index; Significant stock concentration as Top 10 names account for 87% of the underlying The above benchmark has significant exposure to Westfield related entities which will heavily dictate returns; The above index gives investors mid cap exposure. This may result in a higher degree of volatility when compared with other offerings which track the ASX 200 A- REIT index, this security is more appropriate for the Growth and Aggressive risk profiles; Structure VAP tracks the total return rather than the price return of the underlying index, meaning dividends are reinvested; Total Costs The fee structure is cheaper than other broad market A-REIT ETF s, however is 1bp more expensive than the wholesale managed fund; Liquidity Maintains the lowest bid / ask spread relative to rivals; Average daily share trading volume remains appropriate to promote liquidity; Gold

4 SLF Australian Property Index 30 September 2016 SLF State Street Global Advisers S&P/ASX 200 A-REIT 0.40% p.a. N/A Index Information Aims to track the S&P / ASX 200 A-REIT Index; The above index gives the investor a higher skew to the large cap end of the market and hence offers reduced exposure to mid and small companies when compared to VAP. This ETF is more suited to investors with a Moderate risk profile; Significant stock concentration as Top 10 names account for 89% of the underlying The benchmark has significant exposure to Westfield related entities which will heavily dictate returns; Number of holdings 19; Structure Price return is a good yardstick for measuring SLF s capital appreciation, as SSGA holds distributions in cash as they are paid to reduce dilution and protect yield; Total Costs The fee is more expensive than the Vanguard ETF; Liquidity Bid / Ask spread is appropriate Average daily share trading volume remains appropriate to promote liquidity; Silver

5 International Share Index VEU VEU FTSE All World ex US 0.13% p.a. No Vanguard All World Ex US Index Fund Index Information Aims to track the FTSE All World ex US Index; The above benchmark excludes US exposure and introduces Emerging Markets, hence we believe this ETF should only be used in conjunction with VTS, as an increased level of volatility may be experienced; Developed markets in Europe and the United Kingdom account for around 50.0% of the portfolio and Japan another 18.0%. The remainder is split roughly evenly between smaller developed markets such as Canada, Hong Kong, and Australia, and emerging markets like China, Brazil, and South Africa. The FTSE All World ex US Index is a universally recognised index and as such has not been created for the sole purpose of this security; An allocation of 45% to VEU and 55% to VTS gives an exposure inline with the broader MSCI World ex Australia Index. Our preference is for the use of the MFS Global Equity Trust in conjunction with the VEU and VTS securities; Unhedged exposure, hence will have currency risks; Structure VEU uses a replication method to track the performance of the FTSE index. The index incorporates more than 2,200 mostly giant and large cap companies across nearly 50 developed and emerging countries, excluding the US;

6 Total Costs The above fee structure is the cheapest global equity ETF in Australia; Liquidity Bid / Ask spread is appropriate Average daily share trading volume remains appropriate to promote liquidity;

7 International Share Index VTS VTS CRSP US Total Market Index 0.05% p.a. No Vanguard Total Stock Market Index Fund Index Information Aims to track the CRSP US Total Market Index, not the more common S&P 500; Well-diversified by sector & market-cap, but unlike the well-known S&P 500 Index, it includes mid & small-cap names. VTS changed benchmarks in 2013, from the previous MSCI US Broad Market Index, but the two indices are extremely similar, both covering 99.50% of the market cap of the US universe; An allocation of 45% to VEU and 55% to VTS gives an exposure inline with the broader MSCI World ex Australia Index. Unhedged exposure, hence will have currency risks; Structure VTS uses optimized sampling to track the CRSP US Total Market Index, a free-float market-cap-weighted index of more than 3,000 stocks, with very low turnover; Total Costs Liquidity Bid / Ask spread is appropriate 0.05% charged annually, which makes it the cheapest US-based equity ETF in Australia; Average daily share trading volume remains appropriate to promote liquidity;