ETFs drive inflows for Vanguard
Vanguard has reported strong adoption in 2014 of its exchange-traded funds (ETFs) in the United States, Europe, Canada, Australia, Asia, and elsewhere around the world.
The firm posted global ETF cash flow of more than $75bn at the end of November and total global ETF assets of more than $442bn.
In the US,Vanguard posted $63.5bn net inflows into its 67 US-based ETFs ytd.
Additionally, the company reported lower expense ratios on 22 ETFs over the past year, including reductions for some of its largest and most popular ETFs.
In Europe, Vanguard was second out of more than 50 European ETF providers in terms of cash flow year-to-date through November 2014. Vanguard finished the month with $14.2 billion (€11.4 billion) in ETF assets under management.
The company launched four new equity ETFs in October 2014 and now offers 13 ETFs in the United Kingdom and Europe. The ongoing costs for Vanguard’s European ETF suite now range from 0.07% to 0.29%, compared with an industry average of 0.35% (Source: ETFGI). The firm also lowered charges on 25 U.K. and Irish-domiciled index mutual funds and ETFs during the year.
The company has also a strong presence in Australia, Canada and Hong Kong with respectively $2bn, $3bn and $55m in ETF assets.