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Vanguard and iShares launch global fixed income ETFs on ASX

ETF Watch - Dec 15, 2015

The marketing teams & journos must already be on Christmas holidays because over the last couple of weeks with little fanfare Vanguard and iShares have launched a total of 7 new ETFs on the ASX, with 5 focusing on global fixed income.

Lets take a look at what's new.

Fixed Income & Credit ETFs

5 of the new ETFs fill the much under-represented fixed interest sector of Australian ETFs. In fact, until now there has been no access to global fixed interest or credit securities in Australia. That has changed with the launch of these new ETFs:

All of these funds provide the investor with access to a portfolio of global fixed income, each with their own little twist.There is global governments bonds (VIF), high quality corporates (VCF and IHCB), high yielding bonds (IHHY) and emerging market bonds (IHEB). None of the funds are new, with both the Vanguard options already available as managed funds to wholesale investors (those with over $500k to invest) for a number of years and the iShares options already available in the US and now cross-listed locally.

Regional Equity ETFs

Vanguard have also launched a new Asian equity and European equity ETF:

Neither is as exciting as the fixed income ETFs, as they are playing into a much more crowded market, however each do offer something. The Asian ETF is the first of its kind that excludes Japan and whilst there are 3 other ETFs that focus on European equities, the Vanguard offering with a management fee of 0.35% is the lowest cost offering now available.

These 7 new listings bring the total number of ETFs launched in 2015 to over 30, exceeding the number of new offerings in 2014 by almost 3 times.

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