ETFs
Vanguard to launch first actively managed stock ETFs
Vanguard, the world’s second-largest asset manager and a pioneer of low-cost index investing, is preparing to enter the United States market with actively managed exchange-traded funds (ETFs) for the first time. According to regulatory filings on Monday, the company plans to launch ETF versions of three existing mutual funds, each pursuing a distinct strategy focused on dividend growth, growth stocks and value stocks. Wellington Management will oversee the active management of the funds, marking a shift in Vanguard’s approach to exchange-traded products. Vanguard already offers a small suite of actively managed bond ETFs, but the latest filings represent its first foray into active equity ETFs. The move comes amid a wave of launches from asset managers seeking to capture rising investor demand for active ETFs that promise the potential to outperform benchmarks while still offering tax efficiency and lower costs compared to traditional mutual funds. The three ETFs will not be entirely new creations but will build on established strategies and experienced managers. The Vanguard Wellington Dividend Growth Active ETF (VDIG) will be overseen by Peter Fisher, who currently manages the Vanguard Dividend Growth Fund and Van
How to work out the total returns of your shares
It is tempting to judge your stock-picking success on the rise or fall of the stock price at any given moment but it is important to remember that capital gains – the difference between the purchase price and what the stock is worth now – are not a complete picture of how your shares have generated returns within your portfolio. Ironically, while some investors are fixated exclusively on share price, another cohort - typically income-focused investors – can be singularly focused on income derived from myriad forms of corporate activity and virtually ignore share-price movements. A more definitive pictureHowever, a more complete way to gauge how a stock has performed over a specified time frame is to take what is called a total returns snapshot. It is not brain surgery -total return typically refers to the return from all sources, including capital gains and the all-too often overlooked income from dividends - and/or or other distributions to you the shareholder – within a single metric. This more holistic measure is also useful when wanting to compare investment returns among dividend-paying stocks, and how they rate with their non-dividend-paying counterparts. It can also help compare investment results when a stock
Betashares expands with new Private Capital division
After launching its first Global Bond ETF early this month, Betashares is seeking to capitalise on growing investor and adviser demand for diversified portfolios of equities and bonds - offering compelling risk-adjusted returns – by opening a new Private Capital division. Having recognised that the Australian market has been underserved when it comes to high-quality global private asset options, Betashares initially flagged its plans to push into private markets earlier this year. Since then, Betashares has hired James Fleiter, a former relationship manager at Ares Management, to lead the development of its private assets offering. In response to the rising prominence of private markets among wealth managers and institutions, Betashares expects its private capital division to offer institutional-grade private market investment solutions - plus educational content - to Australian wholesale investors, financial advisers and their clients. To the uninitiated, private markets refer to the investment in the capital of privately owned companies versus publicly traded companies and typically includes asset classes like private credit, private equity, venture capital, private infrastructure, and private real estate. Given t
Betashares' Australian-first defined income ETF range
Having read the tea leaves of nervous income-focused investors, concerned over the certainty of income with interest rates on the slide and hybrids coming to an end, ETF issuer Betashares has launched a range of fixed income ETFs with a twist. What’s different about these ETFs is that they promise to deliver predictable monthly income with a defined maturity date. Betashares Defined Income Bond ETFs are targeted at a growing cohort of investors seeking greater predictability in cash flow and capital return. It’s understood that the new fund combines the traditional features of a single bond held to maturity – including regular payments and a set end date – with the diversification, flexibility, liquidity, and transparency benefits of an ETF structure.Investment grade corporate bondsEach ETF in the Defined Income Range holds a diversified portfolio of investment-grade Australian corporate bonds which mature in the 12 months leading up to a specific date (e.g. May 2028, 2029 or 2030). Investors can expect targeted monthly income payments until the Fund’s maturity date. Once the fund matures, investors receive the value of their units, mirroring the experience of holding an individual bond to maturity.Buy/sell any time