Vanguard has launched Global Aggregate Bond Ucits ETF on the London Stock Exchange (LSE), and Deutsche Börse.
Fixed Income ETFs are surging in popularity in Europe, with over $24bn flowing into fixed income ETFs year to date, as European investors increasingly recognise the benefits of using ETFs in their portfolios; low-cost, diversification, transparency and liquidity.
Vanguard Global Aggregate Bond Ucits ETF is designed for investors seeking very broad fixed income exposure that provides access to a universe of over 23,500 investment grade bonds (as at 20 June 2019) issued by governments, corporates and agencies across both developed and emerging markets. The ETF is ‘currency hedged' which is a technique to minimise the risks associated with movements in currency exchange rates.
The new ETF is managed by the Vanguard Fixed Income Group (FIG). FIG takes a team based approach to investment management, avoiding a star manager system. The team is globalised with trading desks in the United States, United Kingdom and Australia driving an investment approach that is rigorous, analytical, high-controlled, and cost effective.
Vanguard now offers 26 Ucits ETFs listed on the London Stock Exchange, and has circa $170bn in assets under management across its European mutual fund and ETF range.