Vanguard Expands Global Equity ETF Lineup With Three Funds

Vanguard has added three ETFs to its low-cost UCITS range, giving investors new ways to build globally diversified equity portfolios. The funds are designed to work as building blocks for long-term investors who want more control over regional and company-size exposure.

The Vanguard FTSE Global All-Cap UCITS ETF, Vanguard FTSE Global Small-Cap UCITS ETF, and Vanguard FTSE All-World ex-U.S. UCITS ETF will list on the London Stock Exchange, Deutsche Börse, Euronext Amsterdam, Borsa Italiana, and SIX Swiss Exchange.

What the three new funds offer

The Global All-Cap ETF tracks large-, mid-, and small-cap companies across developed and emerging markets in a single fund. It carries an ongoing charges figure (OCF) of 0.07%, which puts it among the cheapest options in the space.

The Global Small-Cap ETF focuses specifically on small-cap equities worldwide, while the All-World ex-U.S. fund covers developed and emerging markets outside the United States. The third option lets investors keep their U.S. allocation separate and manage it on their own terms. The two funds have OCFs of 0.22% and 0.12%, respectively.

All three ETFs come in accumulating and distributing share classes and will be managed by Vanguard’s Global Equity Group.

The launches build on Vanguard’s existing FTSE All-World UCITS ETF, which covers large- and mid-cap companies globally. They follow the introduction of U.S.-focused Russell ETFs in July, European equity ETFs earlier this year, and a recent fee cut on the FTSE All-World fund.

Jon Cleborne, head of Vanguard Europe, said investors wanted global equity portfolios that were “simple to build, low-cost and flexible enough to meet different allocation needs.”

“These new ETFs build on that strength by giving investors more choice in how they access global markets, whether through broad all-cap exposure, dedicated global small-cap exposure, or broad exposure to developed and emerging markets outside the US,” he said.

For financial advisers and DIY investors, the practical effect is more precision. Someone who already holds a U.S. equity fund can now pair it with the ex-U.S. option without overlapping into the same large-cap names they already own. Small-cap exposure has historically been harder to get at a low cost in a single global fund, which makes the dedicated option a useful addition for portfolios that tilt toward smaller companies.

Cleborne noted the funds were intended to provide investors with different building blocks for constructing long-term global equity portfolios, while allowing them to refine regional and market-cap exposures. The Global Equity Group manages more than $9.07tn in assets globally.